The Case for Selling CBD

 

The Case for Selling CBD

This is part of a conversation with a Company who want to re-price the CBD market and make it affordable for everybody who wants to try this amazing treatment and hopes to gain significant market share. They have the chance to reprice the market, a 1 oz bottle of 250 ML of CBD tincture can retail for over $30, and we have a retail of $5.00 for the same 250 ML they will reprice the markets. With a more affordable price, we can attract and serve millions of Americans.

Fourteen percent of Americans personally use products containing cannabidiol (CBD). According to a recent Gallup Poll, one in 7 Americans is buying CBD. The population over 21 years of age is 282 million people that means close to 40 million people al already buying CBD products. If 40% of sales are 1 oz bottles of tinctures, then 40% of 40 million is 16 million buyers. By 2024 sales in this segment could be $8 billion. Why do people buy CBD, the top three reasons are?

Pain (nonspecific)
40

Anxiety
20

Sleep/Insomnia
11

Forbes suggests that CBD Market Could Reach $20 Billion By 2024

Cannabidiol is a non-psychoactive component of the cannabis plant. CBD doesn’t get people high. However, many people use CBD products for their perceived health benefits. The most popular way to take cannabidiol is using a CBD oil, sometimes called a CBD tincture. It is available in a wide variety of strengths and flavors.

The CBD industry is in a weird place in terms of price. We’ve all heard stories of CBD companies marking up products by 10, 20, or even 30 times the cost. CBD is a trendy industry, and it doesn’t cost much to package powder into a capsule. One ounce of pure CBD oil is 28,000 ML of liquid. If a one-ounce bottle has 250 ML of CBD in it, the non-CBD content is 99.2%. The profit margins are very significant. By comparison, a bottle of 60 Gummi Bears can have 30,000 MG of CBD and sells for $29. In this example, one gummy sell for 48 cents and contains 500 MG of CBD. The tincture 1 oz bottle with 250 MG of CBD selling for $5 is very profitable.

Let me make a point the most popular package of tincture is a 1 Oz bottle with 250 MG of CBD.

I understand that businesses are trying to make a profit, but we also want consumers to get fair value. We took cost into consideration in our rankings. We still featured a range of CBD products for all budgets, but we made sure each offered fair value based on their dosage, quality, and manufacturing.

Although the majority of Americans do not currently use CBD, usage may be ready to increase significantly in the coming years. The 2018 Farm Act legalized the production and sale of hemp-derived CBD when President Trump signed it into law in December. Since that time, many companies have ramped up their CBD production and distribution capabilities. With most startup operations, many will fail; others will begin to dominate. You will offer a stable price and product of a high-quality product.

Your business prospects should be asking how soon they will want to offer this product in their stores? It will not be a matter of if but only when they will have to offer this product. The sooner they act, the quicker they can leverage their price point advantage and build market share. Bringing in new customers with CBD being the attraction will expand their business.

. . . . .