The CBD industry is starting to explode, and retailers around the world are starting to partner with existing CBD brands to get involved. With these collaborations, business owners have to be careful about the distributors that they select. To make these decisions exponentially easier, there are five qualities that these owners need to look form, according to GreenEntrepreneur.
The first tip provided is that business owners should “choose a high-quality product.” The industry is, unfortunately, riddled with “junk.” The extraction method of the extract, along with the actual formula, can make a difference in the price and the end product. Full-spectrum products are recommended, considering their plentiful terpenes, vitamins, and other important nutrients that it preserves. Furthermore, family-friendly products need to be absent of THC, which is the cannabinoid that provides the psychotropic effect.
Next, the website recommended that the owner “choose a company with great service.” With the influx of customers, some of the companies are overwhelmed, and are not run properly. The retailers with too much to handle often show their stress with delays in orders, a lack of stock, and leaving phone calls ignored and unreturned. In choosing a partner for CBD, make sure that the company offers a level of service that meets yours.
Third on the list, Green Entrepreneur advises to “choose a company that fits with your standards.” Any brand that a business owner chooses will essentially reflect back on them, so it’s important to fall in line with a brand that meets those standards.
The packaging of the CBD product is a great way to judge this standard. The website advises to ask certain questions when examining these partners, such as:
- Are items sold loosely, or presented in boxes?
- Are the materials high quality?
- Is the packaging easy to display?
- Is the overall effect in line with other products in your store?
- Will it appeal to the customers you service or want to attract?
“Choose a company with logical pricing and product selection,” which is the fourth tip that Green Entrepreneur brings to light.
Most of the time, CBD products that offer a full-spectrum asset will have about the same price, but their strength and product types will vary. The strength can be incredibly high, around 2000mg or 3000mg, but most customers are not necessarily interested in the highest strength, which will help a business owner decide if this is the route that they want to take. The website also suggests sticking to “mainstream” types of products, like tinctures and soft gel capsules, commenting that “items like CBD cookies and CBD spices sell very poorly.”
Finally, the website suggests that the retailer “choose a company with great marketing support.” When it comes to marketing, a company that already has a strong way of educating consumers will greatly benefit a retailer that is still new in the industry. Look for brands that offer samples to distributors, provide brochures and other educational materials, and even product displays. Marketing tools like these minimize the amount of additional work that retailers need to take on to make these options a reality for their own brand.
As the market continues to expand, there will undoubtedly be more wholesale CBD businesses and products on the right. However, doing some research before joining forces will make the transition into the CBD industry much easier and will increase the chance of success over time.