8 Considerations Before You Start a CBD Wholesale Business

8 Considerations Before You Start a CBD Wholesale Business

The multi-million CBD industry offers various opportunities, one of which is wholesaling. As more
consumers show an interest in the benefits of CBD products, more people also wish to get into the
industry. However, before you start a CBD wholesale business, you need to take some factors into
consideration. Doing so will ensure that your motivations are in the right place and that you are in it for
the long haul. Furthermore, if you fully understand what goes into the business, you are better prepared
to face challenges that may come up along the way.

If CBD wholesaling interests you, here are some factors you need to consider.

1. Your belief in the products’ benefits
The popularity of CBD products makes wholesaling it seem promising. However, trends and popularity
should not be your sole motivation for joining the industry. Ask yourself how well do you believe in the
benefits of the products you’re planning to market? After all, you can only truly effectively promote
products if you swear by their advantages. If you find yourself feeling even just a tinge of doubt of how
effective your products are, you might need to think about getting into CBD wholesaling more deeply.

2. Your funding
CBD wholesaling generally requires you to purchase stocks in bulk. This means you need to be prepared
to make a significant initial investment. You need to assess your own finances to determine whether you
have sufficient funding.

3. Your supplier
Before finalizing your decision to start a wholesale CBD business, you first need to look for potential
suppliers. It’s crucial that you only partner with farmers and manufacturers that follow good cultivating
and manufacturing processes. You also need to verify if a supplier has all the required licenses to make
sure that you don’t get caught in legal issues. Finally, you should find out whether the supplier utilizes
third-party testing to ensure the quality and safety of the CBD products.

4. Your margin and profit
What good is a business if you don’t make money out of it? For you to be able to apply a profitable
margin without having to go beyond the average wholesale selling prices, you need to look for the best
prices. Take your time to ask for quotes from several legitimate and reliable suppliers. If possible, see if
you can get special discounts, too.

5. Your target market
Even before you open a business and start sourcing your products, you need to have an idea of your
target market. Are there enough retailers or resellers in your local area? Do you plan to sell outside your city or state? You have to determine your target market as this will help you plan your marketing and
selling strategies well.

6. Your commitment to legal obligations
The CBD industry is highly regulated and monitored. You should be prepared to understand the legal
requirements unique to the industry. As the FDA is still in the process of providing polished and final
regulations, you should make it a point to keep yourself up-to-date with industry news and notices to
ensure that your business won’t be in conflict with the law.

7. Your product selection
There are different types of CBD products, with oils, creams, and edibles just some of them. When you
begin wholesaling, you may need to decide whether you will focus on certain products or offer all of
them. You may consider starting with the most popular products before investing in other types.

8. Your marketing and selling methods
Finally, you may want to think about how you will market your products. For instance, are you going to
use a combination of traditional and digital marketing methods? Would you need professional
marketing assistance? It will help to first determine the marketing and selling methods that you feel
comfortable with. Then, consider working with experienced professional CBD consultants and marketers
to help boost your wholesale business faster.

If you need help setting up your CBD wholesale business, Brian has created a CBD Business Blueprint that covers setting up your wholesale business, setting your wholesale prices, to even selling to retail stores.

 

If you’d like to set up a discovery call and see if the CBD Wholesale Blueprint is right for you schedule a time in my calendar here

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