While revered in ancient times, the cannabis plant has had a bad reputation for decades. Thanks to countries like ours, hemp, CBD products, and marijuana are making a comeback.
Canadians are enjoying CBD oil more than ever. With that in mind, what's the average cost of CBD oil for the typical consumer? What should a customer know before buying CBD oil?
Read on to find out what your clients want to know before they try out your product and how you should price it.
The Average Cost of CBD Oil
Due to the regulation of hemp in Canada, hemp's been legal since 1998. That means hemp-derived CBD oil products have had an opportunity to saturate the market a bit.
The average cost of CBD oil hovers around $0.09 to $0.17 per mg.
On the surface, that sounds simple. Looking deeper, the situation becomes more complicated. You won't be able to apply this price to your product without any thought. Here's what will impact your pricing:
- The oil's potency
- The source of your CBD oil
- Your product and company brand
Keep reading for an in-depth guide to these three factors.
What You Need to Know About Potency
Your CBD oil's price will be one of the first things the customer notices. The second will be your product's potency.
You need to invest in accurate testing for all your products. Customers want to know your oil's:
- CBD levels
- THC levels
Testing for THC is important because that's the psychoactive component of CBD oil. Your customers want to know what to expect with your product.
Advertise the Source
The cannabis plant produces CBD oil, but it could come from either hemp or marijuana. Marijuana is psychoactive, whereas hemp is not.
Setting marijuana prices is complex on its own. Your product needs to be clear on where your cannabis plants get produced. Print on your label whether your product comes from hemp or marijuana.
When you advertise your source, you become more reliable in your customer's eyes.
The Importance of Your Brand
The CBD industry is exploding, which makes it even more important to have a respectable brand. Customers want a CBD oil company that's more than their quality product. They want a company that's legal and honest.
If you're able to gain your customer's trust, then they'll become loyal to your brand.
Your brand's influence on the cannabis market will impact your product's price. If you're a new company, then don't expect to immediately compete with big brands.
The Value and Cost of CBD Products on the Market
The cost of CBD oils should reflect their potency, source, and value. If you have a quality product, then consumers will pay what it's worth.
The emerging CBD market is providing plenty of opportunities for entrepreneurs.
Do you believe your CBD product is ready to hit the market? Do you have questions about how to help your business flourish? Reach out to the Cannabis Innovation Group on our online form to speak with our experts.