Hope you enjoyed my previous article. What’d you say? You haven’t read it? Alright, click on this link then. It’ll take you to that article.
Now it’s been only a couple of days since I published it. And I’ve been receiving a barrage of emails. Readers are coming up with new queries everyday, and the way they are phrasing those queries is making me wonder whether they think I am a distributor myself.
I am not. Just to clarify.
I was wondering why the previous article got so much praise. Was it because it had a “To be continued” type conclusion. Bingo. It means people who visit this site are hungry for information. It also means I am supposed to stuff the present article with new insights – insights related to CBD oil’s prospect as a consumable product.
And your prospect as a wholesaler.
Know thy manufacturers
When you are in the wholesaling business, knowing the people or the companies who manufacture the oil is more important than knowing thy neighbors. Things are easy for you if your partner can take care of all the manufacturing needs of the product,. If they don’t or if you are operating solo, get acquainted with the manufacturers.
Its benefits include:
- Getting a first-hand knowledge of how CBD oil is made. Gaining manufacturing knowledge might come handy in the future as you might one day decide to open your own manufacturing unit.
- Manufacturers follow every regulation enforced by the state. Working with them means getting familiar with laws governing CBD usage.
- You get to know how the end-product is prepared and also what ingredients are used in it.
In short, the closer to them you get, the better. In terms of gaining knowledge, in terms of future business possibilities.
Is the product organic?
If you are selling to end consumers, be ready for this question. And people asking this will probably not buy the oil if your answer is in the negative. Sounds unfair but consumers today seem to have a fetish for everything herbal and looking at that, most consumer product manufacturers are going this way.
This means two things:
If you are handling all the manufacturing works yourself, don’t put anything into it that is not made of herbs. If you have partnered with a third-party oil producer, make sure they only sell herbal product.
Second, mention it clearly in the label that the oil is made of herbal ingredients. Don’t see it as a customary step to toe in line with the herbal fad. Rather see it as marketing material. It’s not very hard to produce herbal CBD oil. Just make sure there’s no additive. That’s all.
Check the price
There’s no standard price for CBD oil. Price varies between states and depending on whether the oil was made of hemp or cannabis. Some states have lax marijuana consumption regulations. Price will be a bit cheaper in those states. Price is on the higher end of the spectrum in states where the production and/or distribution of the oil requires too many red tapes to overcome.
Contact the manufacturers to get a clear idea of the pricing. Normally, manufacturers don’t reveal the wholesale pricing unless a distributor shows interest in partnering with them. So directly contacting them is the best way to gain insight into this. Another way is to check the pricing from other wholesalers.
Various categories of CBD oil are available in the market. The categories are based on consumption techniques and include vape oil, edibles, tinctures, salves, etc. Some even buy CBD oil for their pets. Price depends on product categories. Edibles are typically a bit more expensive than tinctures.
Understand bulk buying
When we think of buying something, we think of buying as an individual purchaser. But when wholesalers buy merchandise from manufacturers, they buy in a bulk. Now as a wholesaler, you’ll want to have your private label on the product. So talk to the manufacturers or if you are into reselling, the wholesaler who’s bulk selling you.
The agency selling you the oil must offer dropship services. Ask them upfront whether they’ll ship it to your preferred location. It’s important because if they can offer dropship service, that means they provide warehousing service too.
Resellers and wholesalers spend money unnecessarily on storage and warehousing. Dropshipping saves them from such uncalled for expenses. A side benefit is that you can keep your customers updated about the delivery of the product through the tracking code issued to you.
It’s easy to grasp the difference between retailers and manufacturers. But between wholesalers, resellers and distributors – not so much. These terms are often used interchangeably. As a wholesaler, you need to define your territory and excel in everything you are doing. The insights shared here will give you an edge in that.