What You Need to Know Before Partnering with a White Label CBD Manufacturer
Cannabidiol aka CBD infused product has created a whole lot of buzz in recent years. It is unlikely that you haven’t heard of any CBD infused product by now. From edibles (i.e.: gummies, chocolates, etc.) to topical products (i.e.: balm, lotion, cream, etc.) CBD has touched many industries by storm. The growing demand among consumers has made CBD an industry of its own. It is growing exponentially year after year. Do you consider yourself a visionary entrepreneur? The one that can see the future. Then you can easily realize now is the time to come up with your own line of CBD infused products. Partnering with a white label cbd manufacturer you can do just that. It will save you both time and money.
What Does White Label Mean?
The term white label refers to products that are developed by a 3rd party manufacturer. Finished products are then offered to buyers at wholesale prices. You can buy, rebrand and sell them to your already existing customers with a price tag you will see fit. Some CBD manufacturers give you the option to set your own pricing for the products you are sourcing. Others set a Maximum Retail Price (MRP) for the products. You should take the fact into consideration while partnering with a wholesale white label CBD distributor.
White Labeling CBD Products
The market is booming with numerous CBD products and a solid consumer base is already there to purchase those products. Thanks to the consistent marketing effort by industry leading brands and hemp advocates. You want to place your brand in this emerging yet competitive market. So, it is obvious that you need proven products that have high demands. A private label CBD manufacturer can easily help you achieve that goal. Thus you can save both time and money to ensure long term success in the industry.
Related: Top 9 White Label CBD Manufacturers in the USA 2021
White Label vs Private Label CBD
The term white label and private label essentially refers to the same thing. Interesting fact though, you can order white label CBD products without having any label on them at all. You can source the label either from the manufacturer itself or a 3rd party provider printed with your brand logo.
You also have the option to buy wholesale CBD products from already established brands and sell retail. But when compared with white labeling, it gives you the upper hand and gives you a larger share of profit.
Benefits of Private Labeling CBD
- Can source your products from GMP certified processing plants
- Comparatively low cost to start the business
- Access to already developed product formulation
- Option to go with your custom formulation
- Can get assistance with branding (label design, printing)
- Order product without having any label on them
- Get marketing support provided by some partners
- Avail sample products before placing the actual order
- Enjoy free shipping provided by some partners
It may sound as easy as 1,2, 3. But there are some facts you must consider before partnering with a white label CBD manufacturer:
- Products’ Quality & Consistency: You should never compromise with the quality of the products you are sourcing. As much of your business’s success depends on it. The product you are offering to your customers today will do the word of mouth marketing for your brand tomorrow. The quality of a CBD product depends much on the extraction process used by the manufacturer. Partner with a company that uses the CO2 extraction method as it ensures products of the highest quality. Do your own diligent study here.
- Product Variation & Customization: Established brands develop CBD products of various types and formulations. Again those products come with different potency, flavors, etc. Companies that have gathered years of experience already know which are the most demanding products in the market. Ask them if they are willing to assist you, no matter how big or small your initial investment is.
- Transparency All Along: A company that is legit will always share all the information related to its industry. Hemp-derived CBD products are legal across all the states in the USA. Know the minimum allowed threshold of THC content in Full Spectrum CBD products. Up until today, the maximum allowed amount of THC in any CBD product is 0.3%.
- Experience & Expertise: A study conducted in 2017 reported almost 70% of CBD products in the US consumer market were incorrectly labeled. FDA does not fully regulate hemp-derived CBD products. Experienced companies do provide 3rd party lab test results for all products under each batch. Don’t just put your trust in some x y z company. Take a look at their website. Figure out whether they are sharing these important pieces of information publicly or not.
- Marketing Support: Companies that are well ahead of their game provide marketing supports to their private label partners. Their promotional materials can be a helpful resource for educating your customers and employees. You can ask for product samples, brochures, product display images, signage, banner, etc. With the growth of the CBD market, the number of new providers is also growing. Not all of them provide real value. So a little research before jumping in with ideas can save you a lot in the long run.
Takeaway
We tried to cover (answer) the questions that you must ask yourself before partnering with a white label cbd manufacturer. You need a business partner who is more than a cbd manufacturer. Consumer behaviors are evolving constantly and new products including other cannabinoids like CBG, CBN, CBC are hitting the market. Your private label cbd partner needs to evolve accordingly understanding consumer trends. Thus, you can ensure long term success for your business.
