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Cannabidiol, or CBD for short, has gone from relative obscurity to one of the world’s fastest-growing health supplements, all in less than half a decade. Its meteoric rise in popularity came primarily with some U.S. states and Canada listening to their restrictions with various cannabis products. With that came massive tax revenue, open research into the cannabis plants, and new avenues for health supplementation and herbal treatments. It is projected to be one of the top-selling products globally over the next decade. It comes as no surprise that hoards of people are jockeying into position in this booming business. But like most health products, formulation and manufacturing are an expensive and difficult process that requires ISO clearances and CGMP standards. This is why most people are turning to private label CBD products. And before you jump in on the business, here are the 10 things you need to know about the private label option.
Set Your Own Standards
When it comes to CBD oil, unfortunately, it’s still the Wild, Wild West. Because of its boom and there being such little precedent for it in the industry at large, establishing quality controls and measures can be a bit more difficult. It’s important that you look into private label CBD oil in the same light as you do for any other product you would personally consume in a store. Is it sealed? Is the factory regularly inspected? Do you see a lot of numbers and barcodes? Etc.
Third-party testing is crucial. There’s a misnomer that all CBD products are healthy. They’re certainly not. When you are looking for private label options, you need to make absolutely sure that each lot is tested for purity by a third party. Ask your supplier for the lab’s contact information if it’s not in the report. Also, get familiar with reading lab tests, not just the numbers on the side, as well as to inquire about the methodology. Knowledge goes a long way in this industry, and it is important not to let pseudoscience prevail.
You’re Bypassing Wholesalers
When you’re buying a white label, you’re not dealing with a wholesaler. Going wholesale means that you’re buying from a middleman with their own set price. When you work with a white label, you get to set your own profit margins. You’re dealing directly with the manufacturer in most cases, and you get to set your own price based on what you think the market can handle. In wholesale, a manufacturer sells to a distributor. The distributor then makes it their product, after which, they sell it to you, the retailer. Even then, there could be additional middlemen in the wholesale side that jack up the price even more. White label allows you to bypass all of that.
You Don’t Have The Pitfalls Of Middlemen
Because you’re cutting out the middleman, you can get your products delivered to you much faster. You don’t have to wait on all the complex logistics channels that wholesaling entails. All it takes is one person to be late on the order down the chain leading to you. And in business, delays, reasons, and excuses are a wholesaler’s second language. So if you find yourself in a situation where you’re selling out left and right, having access to a white label operation allows you to restock much faster than you would any other way, short of manufacturing it yourself.
You Get To Design The Label
When you’re choosing a private label, you have the ability to use your own designs. You don’t have to rely on someone else’s concept of how to brand a CBD product. That can be entirely up to you, as dictated by the analytics and your target market. This means that you have full control over the look, the feel, the overall aesthetics, and ultimately the perception of your company.
You Get To Generate Brand Recognition
Because you have full control of the design, you get to exercise your marketing skills in the realm of brand recognition. As a retailer, more often than not, you’re just stocking shelves and keeping your bottom line happy. But when you have authority over the design and branding, you get a chance to delve into the world of intuitive sales and unconscious cues, Most customers don’t really want to think about what to buy. They want to get to a product, come to the conclusion that it’s the best for them, and stick to it. The convenience of having a go-to brand is what most consumers look for. You get to apply concepts of user experience and design to position your company as the go-to for as many buyers as possible.
There Are Various CBD Products
CBD oil isn’t the only product out there. It’s the most popular due to the way it’s delivered and the cool look of a glass dropper, but there is a whole host of different products that have CBD infused in them. There are gummy bears, a la gummy vitamins. There are various creams and balms for muscle soreness. There are shampoos and face creams. All of these are viable options to sell. They’re all riding on the all-encompassing idea that CBD is a powerful anti-inflammatory. Remember in this business, knowledge and science are your advantage, so it’s in your best interest to know the difference between effective delivery systems and ineffective delivery systems of CBD.
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Private Label CBD For Pets
CBD products aren’t just for humans. There are so many treats and pet foods that have CBD in them. Most of the animal and pet markets regarding CDB have to do with treats, though. But that’s not to say that shampoos and other products won’t make their way over to the pet store market as well. You’ll never know. So having that in your back pocket (or even main sales pitch) is never a bad idea.
You’re Getting Ahead Of The Global Market
CBD is illegal in a lot of countries. Its legality is actually a pretty rare occurrence on this planet. Most countries still think that CBD, being a cannabis product, will get you high and unmotivated. But to those who are in legal cannabis countries, we all know that’s a completely false statement. People like to hold on to their skepticism based on loose experiences with illegally purchased marijuana from college. CBD couldn’t be further from that, which is why it’s poised to become legalized in more countries. Having your own brand through private label products puts you in the position to sell your brand to other emerging markets, all of which are dying to get ahold of legal cannabis products.
Private Label Saves Time
In the end, using private label products saves you a whole bunch of time. It’s the absolute best way to free your mind from formulation, measurement, facility testing, inspections, etc. You can simply buy the product directly from them, ask for their annual or bi-annual inspection report, and be on your merry way. This gives you more time to focus on what you should be doing: selling, selling, and selling.
The hype over CBD products is a new phenomenon that will, over the course of the decade, eventually becomes normalized. Yes, it’s the Wild, Wild, West, out there. But if you position yourself as a reputable company suing third-party tested private label products, you’re poised to grow exponentially, There’s no business out there like the CBD business. And succeeding in it will always prove to be a wonderful and fruitful decision.