Anybody who thinks Washington’s I-502 pot business is fun and games better just mellow out. CHS has obtained records from the state that document the first week of sales at Uncle Ike’s, the first I-502 retailer to operate in Central Seattle within wafting distance of Capitol Hill. The totals are impressive.
According to the state liquor board, the 23rd and Union pot shop started things off with a bang, netting nearly $17,000 in marijuana sales on its September 30th launch day. The rest of the week didn’t fade generating an average take of $13,736 per day.
Penciling that out over an entire year, Ike’s could weigh in somewhere north of $5 million in sales over a full 365-day period.
The tax man is smiling, too. With a quarter of sales headed to Olympia, Ike’s is generating $3,500 in excise tax per day.
Also well pleased are the I-502 growers and processors — based on state totals, those businesses are claiming around 49% of Washington’s retail revenue to secure their product.
By the back of the envelope, that all adds up to something around a $2 million to $3 million business suddenly bursting into the real world at 23rd and Union. Real estate owner and entrepreneur Ian Eisenberg’s other neighboring business, the Sea Suds car wash, has nothing on that, we’d wager. Also not included in the totals is revenue from the adjacent Ike’s gear and pipe shop.
Both Uncle Ike’s and Sea Suds are CHS advertisers.
The reporting period includes October 6th, the day neighboring Mount Calvary Christian Center held a huge rally calling for the marijuana store to be shut down.
One caveat: Eisenberg says the state’s publicly reported totals vary slightly from the numbers Ike’s is tracking but they’re “very close.” We’ll take it!
While the totals for Ike’s seem pretty incredible, they’re not far off what the old state liquor stores in the area reportedly generated. Back in the period when the store locations were being auctioned off, CHS reported that the Broadway state liquor store generated some $2.9 million in gross sales. The auction winner for the 12th and Pine location shared a similar estimate in 2013.
UPDATE: Eisenberg points out that the IRS is also due to take a large — and potentially punitive — cut:
Section 280E has a huge impact on a provider’s bottom line. Take, for example, a marijuana business with deductible expenses of $100,000. If the IRS does not allow the outlet to deduct these expenses, that outlet would see a rise in its tax bill of at least $22,000.
UPDATE x2: We’ve been asked where Ike’s ranks among I-502 stores. It’s early but, here’s a look at the cleanest set of revenue totals we have so far — from October 1st through October 6th, Ike’s ranks #4: