Pros and Cons of Private Label CBD Products
With CBD now a mainstream part of contemporary culture, an entire industrial ecosystem has emerged around this hemp cannabinoid — complete with professional white labelers, companies that make and sell concentrated cannabinoid products in bulk quantities. What, exactly, is a CBD private labeler, and what are the benefits of opting for private labeled CBD products versus making them on your own? Learn more info about the pros and cons of private label CBD products in this guide.
What Are Private Label CBD Products?
A private label CBD product is a generic item containing CBD that is then labeled with a brand’s name and logo. Private labeling is done all the time in the food and healthcare industries, and it’s only natural that the practice has now also become commonplace within the CBD market.
What Are the Benefits of Private Label CBD Products?
Private label CBD products are not lower-quality than products that brands make themselves. On the contrary, they often contain lower levels of contaminants and are made with higher-quality processes, resulting in the types of repeatable, reliable results that shoppers gravitate toward.
Additionally, private label CBD products are usually cheaper than small-batch, brand-made products — extra value that can be passed on to employees and shoppers alike. Perhaps most importantly, outsourcing the CBD production process saves brands the massive financial and logistical headache of sourcing and acquiring professional-grade extraction and product formulation equipment — often an outright cost to the tune of hundreds of thousands of dollars.
Pros of White Label CBD
Now, let’s compare the pros and cons of white label CBD, starting with the pros:
To achieve the same quality standards that competent white labelers hold themselves to, you would need to outpour an equal investment in equipment, manpower, and knowhow. By that point, you might as well start your own private labeling operation — an ironic turn of events that would no doubt make itself readily apparent.
The increased quality provided by white label CBD comes at no extra labor cost to you — in fact, the amount of work that goes into the process is far less. So, not only do you avoid massive upfront equipment costs, but you can also save massively on labor and direct your workforce toward high-end creative tasks like product design and brand outreach.
As much as they might talk about supporting local businesses, shoppers end up gravitating toward the products that serve their needs the best. It’s a hard fact that a small, mom-and-pop hemp extraction operation can’t hold a candle to the results achieved by a professional CBD extraction facility. Better quality means better loyalty — which means better long-term growth.
Cons of White Label CBD
Are there any drawbacks to white label CBD? One, perhaps:
It’s undeniably true that you lose some control over the process when you outsource CBD production to a white labeler. This is only a problem, though, if you have some reason not to trust the results that your private labeler will provide. If that’s the case, why did you partner with them to begin with?
Looked at from another angle, losing control over the process is just another benefit of working with a CBD private labeler. Do you actually want to agonize over every little detail, or would you rather focus on the hard work of running your business — work you know all too well that you simply can’t outsource?
Is Private Label CBD Worth it? The Bottom Line
After close examination, it becomes clear that private labeling is the ideal option regardless of where you might be at as a CBD brand:
- New brand? Avoid going into debt by purchasing only the products you need, professionally made.
- Existing brand? Improve profits, increase morale, and enhance growth by outsourcing unessential tasks.
There was a time when private labeling was still new in the CBD industry, leading to the emergence of some unsavory characters. The hemp market has had some time to consolidate, however, and now, the level of professionalism you find is on par with any other subsector of the overall medical or nutraceutical industries.
Competent CBD private label companies will provide detailed lab reports and offer total transparency in every other conceivable way. There’s nothing to hide in the modern world of CBD, after all, and these days, practically everyone has something to gain.
Review Pros and Cons of Private Label CBD Products.