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Central Seattle’s only pot store, Uncle Ike’s sold $13,736 of marijuana per day in first week

The staff at Ian Eisenberg's pot and car wash emporium (Image: Uncle Ike's)

The staff at Ian Eisenberg’s pot and car wash emporium (Image: Uncle Ike’s)

Source: WSLCB

Source: WSLCB

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.

Screen Shot 2014-10-14 at 10.54.48 AM

The green stuff is all real. The grey? CHS guesstimation on impacts like increased holiday sales volume, a decay in the novelty factor over time, and much-hoped-for price drops. The bottom line also factors in the likely cost of buying inventory. Not factored in are costs like employees, security, and advertising on CHS. (Source: WSLCB)

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:Screen Shot 2014-10-14 at 2.41.27 PM

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COMTE
COMTE
7 years ago

At this rate, Eisenberg will have enough by next spring to buy the church property next door – problem solved!

Spiffy D
Spiffy D
7 years ago
Reply to  COMTE

Well their silly sidewalk protest hasn’t impacted sales, apparently.

People sure do like weed.

lollegalweed
lollegalweed
7 years ago
Reply to  COMTE

Especially at those prices he should be able to buy that church in a few days. 2-3x the black market rate is insane. It should be cheaper to buy legally, not more expensive.

Jim98122x
Jim98122x
7 years ago
Reply to  lollegalweed

Why would anyone get into the business of selling ANYTHING at prices higher than legal, commercial stores could do? WhoTF would buy from them?

COMTE
COMTE
7 years ago
Reply to  lollegalweed

Yeah, that’s what all the people who supported liquor privatization kept saying, despite evidence to the contrary – and look how well THAT turned out. If we could actually tax BM cannabis like we now do legal cannabis, there’d be much less discrepancy in price, and BM also has the advantage of much lower infrastructure & overhead costs, which also needs to be factored in.

And sure legal is more expensive, but here’s the thing: by buying legal you ensure your $$ is going to support the industry, plus add to the state coffers instead of enriching some international drug cartel; you’re putting at least a little dent in the BM by reducing demand for their product; you don’t have to wait hours for your dealer to decide to show up, or engage in some sort of furtive street transaction with some sketchy guy selling who-knows-what, and run the (admittedly low) risk of being busted for your efforts. As it is now, you can openly walk into a state-licensed store in a fixed location that operates under normal business hours and purchase a product of known quantity and strength with the confidence that what you are doing is completely above-board, and that no one: not cops, not churchies, not your neighbors, can stop you.

And based on these sales figures, it’s pretty clear a lot of people think this combination of convenience, accessibility, and assured quality are well worth the additional cost.

Timmy73
Timmy73
7 years ago

Good for them. I wonder how their sales compare to other outlets in the city. Are other outlets sales just as high or does this site have a better capture rate? I often see a line outside the retailer in SODO that also sells.

Timmy73
Timmy73
7 years ago
Reply to  Timmy73

Thanks for the update. Those retailers have impressive sales!

rob!
rob!
7 years ago

If they don’t own their own building, they and other lessee pot stores can expect their rents to rise rather steeply at renewal time. Are liquor stores subject to similar public airing of their revenues?

rob!
rob!
7 years ago
Reply to  jseattle

Thanks for the invitation. Really. I probably will spend more time here now that Slog seems to be circling the drain. But to be fair, calling Ian Eisenberg a “real estate owner and entrepreneur,” even with a neighboring business, does not nail down whether he owns versus leases the pot shop, nor do past reports of privatized liquor store revenues clarify whether the WSLCB releases their figures in an ongoing way. It’s those uncertainties I was trying to nail down. I’m a non-resident, though planning eventual relocation to the NW, so please pardon me not knowing what a “regular” might.

HighAboveSeattle.com
7 years ago

Great post CHS! Be interesting to see how the shop will stack up when all Seattle shops are open. Based on location, maybe it will be in the top 3?

Bussin'
Bussin'
7 years ago

Can those tax revenues bring back the Route 47, please? :’o(

Spiffy D
Spiffy D
7 years ago

Anybody want to comment on what Ike’s is like as a store? I’ve only walked by. I’ll probably go in to check it out at some point. Seems to be running smoothly based on the folks I see going in and out daily. No drama as far as I can tell.

COMTE
COMTE
7 years ago
Reply to  Spiffy D

It’s clean and bright, if a bit spartan, and there’s plenty of free parking; the staff is friendly and knowledgeable and will take the time to explain the different strains and their comparative qualities; the shelves seem to remain consistently stocked with a decent selection of product; and even when there’s a line eight or ten deep you can still get in-and-out in a manner of minutes. All-in-all, I’d say they’re doing a good job of things, and based on these initial sales figures, they’re going to continue to do good business. It’ll be interesting though, to see what happens when the second shop opens up down the street.

Spiffy D
Spiffy D
7 years ago
Reply to  COMTE

Cool, thanks.

SEATOWNGUY
SEATOWNGUY
7 years ago
Reply to  Spiffy D

The thing I like a lot about (Uncle Ike’s) is the type of clientele that patrons them. Having been there several times to just chat with management and staff, (I am a very close proximity homeowner to the shop & Church)…I can say with relief and approval that, it’s certainly a ‘type’ of demographic thats coming there to buy. They aren’t thugs, black-market dealers, criminals or deviants…but rather, someone who could be your lawyer, cable-guy, professor, co-worker or neighbor. Everyone that I have seen coming and going just made their purchase and left, just as if they went to any other store to buy something..no big deal! To further these points, as the 4 or 5 Residential/Retail complexes (all between 23rd and MLK, on E. Union) get built over the next 5 to 7 yrs, those residents will surely be the main constant source of patrons for all the immediate casual entertainment, beer houses & eateries and pot-shops alike. Can’t wait!

trackback

[…] Ike’s, which opened on Sept. 30, averaged $13,736 in sales per day in its first week of operation. That equates to about $3,500 in excise tax revenue for […]

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[…] Ike’s, which opened on Sept. 30, averaged $13,736 in sales per day in its first week of operation. That equates to about $3,500 in excise tax revenue for […]

Stephan
Stephan
7 years ago

Tax the church.

trackback

[…] Ike’s, which opened on Sept. 30, averaged $13,736 in sales per day in its first week of operation. That equates to about $3,500 in excise tax revenue […]

bob
bob
7 years ago

What were Ike’s per-gram prices? I’ve heard varying reports–do their prices change daily?

By the way:

Does CHS plan an updated report on “Winterlife” and the “racoons”? I always thought their business was…tenuous at best. I suspect their supposed switch to medical-only was IRS-induced–I think they had both the IRS and DEA on their asses. An all-cash illegal business that was stupidly high-profile…grab the $$ and run!

Jim98122x
Jim98122x
7 years ago
Reply to  bob

I’ve only been in there once, Tuesday night, and Comte’s observations were exactly what I experienced. Their per-gram prices were approx $24/g. It all looked like really fresh and first-rate produce to me.

bob
bob
7 years ago
Reply to  Jim98122x

“Their per-gram prices were approx $24/g. It all looked like really fresh and first-rate produce to me.”

Lawdy…I might pay a little more than black-market, but…DOUBLE a typical black-mkt gram?

These prices will have to drop…not only for my selfish reasons, but because there’s so much black-mkt product…these retail stores will become like tourist souvenir shops.

IKE
IKE
7 years ago
Reply to  bob

Top tip: Ike’s has 4g’s of Monkey Grass Farms primo weed on sale for $70. The legal weed industry is just gearing up. Prices will fall!

Omari Tahir
Omari Tahir
7 years ago

THERE IS BIG MONEY TO BE MAKE IN WAR MATERIALS AND ASSORTED LEGAL AND/OR ILLEGAL DRUGS (PRESCRIPTION OR STREET SALES)???

THIS IS AN EXCELLENT BUSINESS FOR THE HIGHLANDS OFF 145TH AND AURORA, BROADMOOR, MADISON PARK, SEWARD PARK ETC, WHERE PEOPLE CAN AFFORD FOR THEIR MONEY TO “GO UP IN SMOKE”???. AS FAR AS A “WEED AND SEED” CRIME STORE ON 23RD AND UNION??? ONLY A COMMUNITY OUTSIDER, DESTROYER, “WANNA BE GENTRIFIER / EHTNIC CLEANSER LIKE IAN OR A “CIRCUS CLOWN” WOULD ATTEMPT TO ADD TO THE MURDER COUNT ON THIS BLOCK CURRENTLY AT 6 (LARRY WARD 1970, CHICAGO NATIVE 1990s (IN FRONT OF HELEN’S / TOMPSON’S VIEW POINT / NEIGHBOR LADIES, BOTH OWNERS OF FORMER BUSINESS BEFORE MED MIX (ARSON FIRE ENDING) ONE OWNER MURDERED INSIDE BUILDING THE OTHER NEAR BY (1990s), AARON ROBERTS (2001), AND KEVIN BROWN (2014),
WOW WHAT HISTORY NOT INCLUDING THE “FERGUSON STYLE” RIOTING ON THIS CORNER (1968, 1969) AND FORMER MAYOR PAUL SHELL’S ACCIDENT (2001)??? TWO SAYINGS APPLY, ONE “BE CAREFUL WHAT YOU WISH FOR, YOU JUST MIGHT GET IT” AND TWO, “THOSE THAT DO NOT LEARN FROM HISTORY ARE BOUND TO REPEAT IT”. 23RD AND UNION HAS BEEN / IS THE CENTER OF AFRICATOWN / CD SINCE THE 1950s. HOW WOULD I KNOW??? BEEN LIVING WITH IN 15 BLOCKS OF 23RD AND UNION SINCE 1946 INCLUDING DIRECTLY BEHIND POST OFFICE ON 24TH. PLEASE RESEARCH AND THEN FILE LAWSUIT AS TO HOW IAN ENDED UP WITH “WEED AND SEED” STORE WITH OUT WINING “WEED LOTTERY’???? STAY TUNED THE BATTLE IS AT THE STARTING LINE BUT THE END IS VERY EASY TO SEE??? NO ONE BUT A FOOL WOULD BE FORE A “WEED AND SEED” CRIME STORE TO ADD TO THE CONFLICT ON UNION?? TEAR DOWN THE “WEED STORE” NOT LIBERTY BANK??????? “IT TAKES A VILLAGE (AFRICATOWN AND CHINATOWN) TO RAISE A CHILD”. SEE YOU ON THE CORNER OF 23RD AND UNION DAILY. Omari Tahir, FOUNDER / PRESIDENT AFRICAN AMERICAN HERITAGE MUSEUM AND CULTURE CENTER, AFRICATOWN / CHINATOWN SUPPORTER.
Reply ↓
Omari Tahir on Monday, September 29, 2014 – 1:31 am said:
BY THE WAY DON’T FORGET TO CONTACT THE MAYOR, CITY COUNCIL PEOPLE AND YOUR LAWYER ABOUT THIS ASININE IDEA TO PUT A “WEED AND SEED” CRIME STORE ON 23RD AND UNION WHILE POLITICIANS WALK THE STREETS AGAINST CRIME AND WASTE MORE TAX DOLLAR$$$$$ HIRING 100 MORE UPRODUCTIVE TAX DRAINING ANGRY AND VIOLENT GOVERNMENT STREET AGENTS WITH GUNS AND BADGES WITH LITTLE EDUCATION (MEDICAL DOCTOR WITH OPERATING KNIFE AND ONLY HIGH SCHOOL DIPLOMA)??? WHAT ABOUT HIRING 100 MORE TEACHERS FOR MADRONA, LESHI, STEVENS, WASHINGTON, MEANY, GARFIELD ECT WITH COLLEGE DEGREES (MASTERS AND PHDs FOR CHEAPER PRICE??? Omari Tahir

TLDR
TLDR
7 years ago
Reply to  Omari Tahir

I STOPPED THREE SENTENCES INTO YOUR UNREADABLE RANT, PRETTY SURE THAT MEANS I READ FURTHER THAN ANYONE ELSE EVER WILL.

14thandUnionite
14thandUnionite
7 years ago
Reply to  TLDR

DEFINITELY READ MORE THAN I DID, TLDR.

trackback

[…] Ike’s, which opened on Sept. 30, averaged $13,736 in sales per day in its first week of operation. That equates to about $3,500 in excise tax revenue […]

trackback

[…] to CapitolHillSeattle.com, Uncle Ike’s Pot Shop hauled in almost $14,000 in total sales, in the f…! We stopped by just yesterday and everything seems to be sailing just fine. The pot shop has yet to […]

trackback

[…] Legal recreational marijuana sales started in Washington near the beginning of July. However, until very recently, there was only one legal recreational marijuana store in Washington’s largest city of Seattle. There are now two stores in Seattle, with hopefully more opening sooner than later. The Seattle marijuana market consumer base is by far the largest in the state, and that translates to enormous sales revenues. How much does a Seattle marijuana store make in a day? Per Capitol Hill Seattle: […]

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[…] Mount Calvary in the shop’s first weekend, the new store did boffo business in its first week averaging more than $13,000 in sales — per […]

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[…] CHS reported on early word of the lawsuit brought against the retailer after less than a month of (very good) business at the corner. In filings with the King County Superior Court, lawyers for Mount Calvary […]

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[…] Ike’s at 23rd and Union is currently the closest I-502 shop to Capitol Hill, and is doing quite well despite an ongoing lawsuit from the neighboring Mount Calvary Christian Center. Under state liquor […]

trackback

[…] recreational marijuana market. Ike’s did over $13,000 a day in sales during its first week, its revenues totals making it the fourth largest of I-502 shops in the state. Its profitability will make it all the harder for a judge to shutter […]

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[…] on the shop’s eye-popping revenue totals, Ike’s lawyers have also called for the requirement of a sizable bond to protect the shop […]

trackback

[…] deal. So we assume he’s rich. Of course, that’s subjective. Add the fact that Uncle Ike’s pulled in oodles of money the first week they were opened, and it’s safe to say that if ‘Franks’ isn’t rich, he’s headed that […]

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[…] The pot shop opened to a respectable amount of fanfare. Nothing like the frenzy that surrounded the opening of Cannabis City, Seattle’s first recreational marijuana store, but respectable. Since then, it has stayed true to one of its’ sales mottos: never out of stock and has recorded strong sales figures. […]