What is EQ Pricing?

Definition

The term “EQ pricing” was originally coined by Headset.io (created by the founders of Leafly) as a unique way for cannabis companies to better analyze their sales data. EQ pricing normalizes product prices using a standard unit of measure allowing for better cost comparisons between products. In our case, the measure is the dose of THC or CBD in milligrams (mg).

What’s the point?

The price per mg metric allows for better comparisons of product costs to be made across product categories regardless of package size. The metric also improves price transparency because it allows you to see exactly how much you’re paying for the main active ingredient(s) in the product.

How it works

If you’re interested in calculating the per mg yourself (before we upload more dashboards), just take the total cost of the product and divide it by the total content of THC or CBD in milligrams (mg). For example, a product that costs $50.00 and provides 150 mg of THC has a price per mg of $0.33 /mg of THC. When shopping for products that are high in THC, it is best to use the price per mg of THC, but when shopping for products higher in CBD, use the price per mg of CBD. If shopping for 1:1 or “equal” products it doesn’t matter which cannabinoid you choose because the price per mg of THC and CBD will be exactly the same.

Why it’s needed

Because the price of cannabis is too damn high! (Kenan Thompson voice). On a more serious note, the price of cannabis doesn’t always make logical sense. Products that provide more may be priced lower than products that provide less and vice versa. Part of this due to built in costs from production and supply chains, but part is also due to the fact that no one can hold cannabis companies accountable to make their prices more transparent. Well, we’re here to change that. Say goodbye to the complexities of shopping by strain classification, strain name, or THC:CBD ratios. Say hello to a simplified way to shop; by examining what products get you the most for your money.

Was this article helpful?