5 Ways to Cut Packaging Costs Under Michigan's 24% Wholesale Tax

Michigan cannabis operators are getting hit from every direction in 2026. The state's new 24% wholesale cannabis tax took effect January 1. February 2026 revenue came in 14.8% below the same month last year. Average item prices sit at $8.88 — among the lowest in the country — while Ohio operators across the border average $31.24 per item.

The margin compression is real and it is not going away. What you can control is your cost of goods. Packaging is one of the largest controllable line items — and most Michigan operators are overpaying by 15-30% because they buy through distributors instead of going directly to the factory.

1. Stop Buying Through Distributors

Every distributor in the cannabis packaging supply chain adds a markup. That markup exists because they bought product from a factory, warehoused it, and are now reselling it to you. You are paying for their warehouse, their sales team, their margin, and their overhead.

HIGHER Packaging takes Michigan operators directly to the factory. No middlemen. No distributor markup. Factory pricing on every order.

2. Consolidate Your SKUs

Most operators buy packaging from multiple suppliers — tubes from one source, jars from another, cones from a third. Every supplier relationship carries its own minimum order quantities, shipping costs, and lead times.

Consolidating to a single direct factory source eliminates redundant shipping costs, reduces minimum order friction, and gives you negotiating leverage on volume pricing across your entire packaging spend.

Pre-Roll Tubes + Glass Tubes + Jars + Cones

One order. One shipment. One invoice. All from HIGHER.

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3. Switch to PET Where Glass Is Not Required

Glass is heavier, breaks in transit, and costs more per unit than PET. For operations where glass is a brand preference rather than a compliance requirement, switching to colored PET CR tubes can reduce per-unit cost meaningfully without sacrificing compliance.

PET CR Colored 115mm

From $0.20 / 250K units — opaque, CR, lower cost than glass

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If glass is core to your brand, UV glass jars and glass tubes sourced directly from the factory still come in significantly below distributor pricing.

4. Order Further Ahead

Rush orders cost more. Expedited shipping costs more. Running low on packaging and placing a small emergency order costs more per unit than buying at volume.

5. Audit What You're Actually Paying Per Unit

Most operators know their total packaging invoice but not their actual cost per unit. When you break down what you're paying per tube, per jar, or per cone — including shipping — the distributor markup becomes visible.

How to make your distributor markup visible:

1. Ask your current supplier for a per-unit breakdown on your last three orders
2. Request a quote from HIGHER for the same SKUs at the same quantities
3. The difference is your distributor markup — made visible

Michigan Local Stock — Cut Lead Time Too

Need pop-tops without the 4-8 week factory wait? We stock 116mm CR pop-top tubes locally in Michigan — ships in 2-7 days at $0.050/unit, up to 31% less than competitors. No ocean freight wait, no air shipping surcharge.

116mm Pop-Top Tubes — Michigan Local Stock

From $0.050/unit — ships 2-7 days from Michigan

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Bottom Line

Michigan's 24% wholesale tax is not going away. The operators who survive the margin compression of 2026 will be the ones who cut costs everywhere they can without cutting product quality. Packaging is the highest-leverage place to start because the savings are immediate, repeatable on every order, and require no operational changes — just a better supplier.