Perception IS EVERYTHING! It’s been proven that wine tastes better when it comes in a heavier bottle. Beer from a bottle tastes better than beer from a can. Why? Because value is subjective, and humans often ascribe more value to things that they pay more for. This is an important phenomenon one that is not lost on marketers and salesmen. This phenomenon has taken hold of the CBD industry, and has created powerful incentives for business owners, manufacturers, and growers (basically the whole industry) to keep prices high.
Of course, after we announced our special Wholesale prices of $1.00 CBD Flower Pre Rolls last week, our Facebook feed LIT UP with posts from other Pre Roll manufacturers attempting to justify their own absurdly high pricing. Some of these folks are wholesaling Pre Rolls for $5, $6, $10 or more. That’s fine for retail, but basically criminal for wholesalers. It’s safe to say we ruffled some feathers.
A few recurring themes:
“There’s no way that’s 100% CBD flower!” – Wrong. Our Pre Rolls are 100% CBD flower. Aromatic, fluffy, compliant, dank, and most likely smoke better than what you currently have in stock.
“You get what you pay for!” – Dumb. The internet is full of meaningless truisms like this. Sometimes you pay too much for a bad product. Sometimes you pay very little for a great product – That’s the point of the market – Some suppliers are simply more competitive.
“Must be ditch weed.” – Wrong. Growing great bud is not easy, but its also not rocket science. America currently has a MASSIVE oversupply of Hemp flower – American farmers grew more smokeable CBD flower in 2019 than has ever existed before. The reality is that many CBD wholesalers aren’t efficient enough to offer our prices. We are strong enough to offer a lower price point, so we do.
1) We are seasoned. It takes our team a couple hours to properly grind, roll, and vacuum seal a pound of Pre Rolls. We’re done with your order while most other wholesalers are still putting their shoes on. Why are we so efficient? We’ve been doing this for years.
2) We are lean. There’s an old adage in the investment world, “Pigs get slaughtered.” The average price of compliant, smokeable CBD flower as of today, December 22, 2019 is between $250-$300/lb (and falling). A pound of flower yields roughly ~450 1 Gram Pre Rolls – That’s about $150 margin per pound. That’s just not enough margin for most wholesalers. But our overhead is lower, so we win.
3) We are Vertically integrated – Most Pre roll manufacturers aren’t also farmers. Plus our farm is remotely located, to keep costs low. Our competition isn’t growing, so they rely on external suppliers, and simply hope that nobody notices they are price gouging.
We’re engaged in the birth of the new American hemp industry – We want to make relationships that will last for life. We would much rather be YOUR long-term reliable supplier than worry about squeezing every last cent out of every single transaction. We already know that other wholesalers will join us in these prices eventually, as the market forces them to – And we welcome the competition!
And if after reading this you’re STILL skeptical, you can always request a free sample! Just email us at Farm@oldwesthemp.com!Contact Us!