CBD has become particularly popular in the last couple of years because of its unique properties. This has created a massive and continuously growing industry of companies selling resale and wholesale CBD products.
If you’re in the process of trying to get your CBD business off the ground, we’re guessing that you have a lot of questions. In particular, you may be wondering what the best approach is to actually pricing your wholesale CBD products. Fear not! We’ve done the research and have broken down what you need to know in this article.
How to Price Your Wholesale CBD Products
So, you’ve found the perfect CBD products, bought them in wholesale amounts, and now you’re ready to start selling them under your brand. But where do you start? Prices for CBD vary immensely. With little to no industry standard, it can be difficult to figure out how to structure your prices. But don’t worry. Countless businesses have been in your position before and eventually, they figured it out. You will too.
There are basically two schools of thought surrounding how to price wholesale CBD products. The first is based on kilograms and the current market value. The second is based on CBD content per milligram.
Let’s start with the first approach. This approach is based on pricing the individual kilograms of CBD – whether that’s isolate, crude, distillate, etc. – by the current market value. This can lead to problems, however, because the demands of the market are notoriously fickle and vary by region.
The second approach is to assign a price based on the CBD content found in a single milligram of a particular product. Once this number is found, it can be extrapolated outwards to encapsulate a kilogram (there are one million milligrams in a kilogram).
As you might have guessed, this second approach can be a bit more tedious. But it also allows for fairer pricing and far more consistency from region to region and from market to market. For these reasons, most businesses adopt a milligram-based approach to pricing.
Pricing Methods May Change
It’s important to keep in mind that the CBD industry as a whole is still in its infancy. As such, it’s still working through some growing pains and establishing its position within the larger consumer market.
Pricing may be a point of confusion for businesses now, but as the industry evolves, so too will its norms for pricing resale and wholesale CBD products. For now, businesses are advised to pay close attention to the changing winds of consumer demands and to the standard practices within the industry when they’re developing their pricing strategy.
Shop for World-Class Wholesale CBD Products Today!
Hemp Depot is your one-stop-shop for high-quality wholesale CBD. Contact our office today to learn more about how we can provide your business with the resources and products that it needs to meet the challenges of a dynamic market.