After becoming a mainstream trend, CBD oil is soldby different retail centers and online stores. The retail prices of CBD are affected by several factors, and we find a lot of confusion over the wide range of prices of CBD in the market. Cannabis consulting services can help you navigate all the challenges that come along with the CBD products sale and marketing.
Read in to know the factors behind the overpricing of CBD oil.
Extraction Methods of Cannabinoids
The extraction of CBD is not a simple process, as it seems. Two main methods used to obtain hemp extract are supercritical CO2 extraction and ethanol extraction. If carried out correctly, both methods can produce high-quality CBD oil. Companies intending to produce small batches of CBD oil prefer the supercritical CO2 method, which is capable of extracting every bit of cannabinoids from the hemp plant matter. However, this sophisticated process is very expensive, so companies offering such CBD oil have higher prices.
The initial product of extraction methods is full spectrum CBD oil that contains other cannabinoids, including THC as well. Since THC is not legal and possesses many harmful side effects, it is not preferred by many people. The whole plant extract is further processed to remove THC, which also adds to the price THC-free CBD products like broad-spectrumand isolateCBD capsules.
The Quality Control Procedure
Extracting CBD through an authentic process is not enough. Reputable CBD vendors need to follow current good manufacturing practices to make sure that they pass the quality control testing. Highly knowledgeable and experienced lab workers are required to deal with extremely sophisticated equipment. Reputable CBD vendors always go for the third party lab testing of individual batches of the product.
These lab tests are also available on-demand and commonly known as certificate of analysis. It contains the quantity of different types of compounds present in the product and ensures that no harmful additives and chemicals are present in the final product.
CBD – Not Always Supported By Financial Institutions
Even though Cannabis and its derivatives are being accepted exceedingly around the world, yet the association of CBD with such a potent recreational drug makes it a risky business for financial services providers. Credit card companies and banks that work with different hemp companies are expected to charge more for their services which also contributes to the reasons behind overpricing of CBD.
Marketing and Distribution
Small-scale distribution of CBD oil also plays a key role in determining the average cost of CBD oil. Due to several misconceptions and regulatory issues about him and Cannabis, many major retail outlets, including drug stores and grocery stores do not carry CBD products. Due to this,the widespread distribution of CBD is greatly affected. Amazon is the largest B2B marketing platform and it does not allow the sale of CBD oil.
Distribution is not the only problem, as CBD sellers also face difficulties in marketing their products. The majority of social media sites and searching engines do not allow for CBD advertising. Since CBD vendors cannot find the intended audience through online sources, they have to go for more labor-intensive processes for marketing that eventually adds to the CBD oil pricing.
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