Wholesale VS. Private Label CBD Product Line
Many of you are just starting in CBD products. Based on your new or existing business models, you will need to choose either wholesaling someone else’s CBD line or private label your own CBD brand.
At least 3 or 4 times a week we have conversations with folks wanting to get into CBD but they need a lot of help understanding how the market works. Specifically asking, “should we wholesale your existing brand (Casco Bay Hemp) or should we private label our own brand from scratch?”. Lets look at the differences.
WHOLESALE an existing CBD brand. We have a brand ready to go for businesses not wanting to deal with logos, branding, marketing, customer service etc… That’s the Casco Bay Hemp product line we offer. This is where you may have an existing site or store and want to just put the products up there and sell them, basically this is Retail. You will make 100% on your money and there are no minimum orders (MOQ). Because its a ready made brand with no minimum amounts you need to order/stock, the price tag is higher. For example, you may only pay $20 per bottle for a particular tincture under private label, but that same bottle/product will be $35 under the wholesale model with a MSRP of $70.
PRIVATE LABEL your own brand. This option is where we will bottle, label, ship and cover your complete line under our product liability insurance. As a business owner you will need to handle all the branding, marketing, inventory etc… This is for people that want to own their own brand outright. There would be a minimum order quantity (MOQ) of 500 units, which can be spread among all product offerings. Private label customers can expect to make a 300-400% mark up on their money. This is because you handle everything, including getting us your labels.
Private Label Marketing. We do have marketing support where we can do logo development, branding, labels, web development and SEO marketing. We can handle it all. Many of our private label clients choose to use us for all of these supporting services. A) because we know the products and how they work better than anyone, because they are ours and B) everyone at Casco Bay Hemp Creative have years of marketing experience, specifically with online web development and inbound lead generation. We crush it for our clients!