Why do the prices of similar CBD products vary so much?

There are significant differences in the prices of CBD products around the world. That difference has become more apparent over the past year due to the increased demand for CBD products.

Currently, it has been observed that the price difference between the most expensive and the cheapest products is around 4718%.

Not only is the cost of CBD products high, but demand is at its peak and is still growing exponentially. The relaxed laws on the use of cannabis products have changed the attitude of a large population towards the usefulness of CBD products. Now it is used to relieve the symptoms of diseases such as pain, insomnia, PTSD, anxiety, depression, among others.

Photo by Anshu A via Unsplash

Since the beginning of the COVID-19 pandemic, demand has increased, as has the production of expensive and cheap CBD products. Makes one wonder if the reason is because producers are trying to cater to the demands of the different strata of the population in the country.

However, this difference is too big to be overlooked. CBD products are used by everyone for common reasons, such as treating medical conditions. These products should be offered at the same price so that everyone has access to the best products. Not to mention the cannabis market hasn’t been regulated or legalized at the federal level.

So what’s going on?

From time to time, sales representatives from several CBD companies publish statements to justify the high cost of their products, after which they either increase the cost of the products or continue at the same exorbitant price they are complaining about.

We decided to find out the main causes of these cost differences in the CBD market. First of all, we looked at the discrepancies in the quality of the cheapest and most expensive products. We also took into account the popularity of the brands and their relationship to the quality of the product.

We have come to some conclusions, but the highlight of it all is that these companies charge a premium price for the best products on the market and sell them to elite society. The seedy products are billed at cheap prices and sold to those who can afford them.

The reasons for this difference in costs

Product type

CBD is a versatile compound and has been infused into various products. From gums, topicals, creams, tinctures, oils to pet food. Right now, CBD oil and edibles are two of the most expensive CBD products on the market. The demand for CBD oil is currently at an all-time high and the hype may continue for a while.

Cultivation method

Hemp and marijuana are the main types of cannabis plants. Hemp is a cannabis plant with less than 0.3% Thx, while marijuana has more than 0.3% THC. Hemp is legally approved for use in some states.

The price of CBD depends on the type of cannabis plant grown. Very few people have access to growing cannabis plants rich in CBD.

In states where more people can grow CBD-rich cannabis plants, prices tend to fall.

Photo by Elsa Olofsson via Unsplash

Extraction method

The method a CBD company uses to extract the CBD compound from the cannabis plant also determines the price of the products.

RELATED: How Is CBD Oil Made?

Some methods are more expensive than others – although CBD extracted using these methods is always of high quality. CO2 extraction is the most expensive and definitely worth it. Not all companies can afford mass production with this extraction method, they use cheaper methods like infusions and ethanol extractions and therefore sell their products at reduced prices. Companies that use the CO2 extraction process cannot lower prices.

packaging

Some CBD companies invest heavily in the packaging and sales of their products. It is good to note that good and attractive packaging does not mean that the product is of the best quality, but it is enough that the company put an expensive price on it.

ingredients

The ingredients used also play a role in determining the cost. Regardless, many companies sometimes claim to use high quality organic ingredients like MCT oil or olive oil to justify an expensive price for their products.

RELATED: How to Find Quality CBD Oil

On the other hand, some companies sometimes use toxic substances to save costs in order to keep the prices at which the products are being sold.

Photo from Pharma Hemp Complex via Unsplash

Testing

CBD products are tested by third party laboratories to check the quality of the products. CBD product testing isn’t cheap and there are so many tests to be done.

The number of tests performed on a product determines its price. Expensive products have been tested for qualities other than CBD content, such as the presence of toxins, quality and terpene content. The price of a CBD product partly reflects the quality of the tests performed.

Other factors include;

• Business location
• labour costs
• Number of product manufacturers
• Etc.

What’s next?

The next step is to find ways to reduce the cost differentials between expensive and cheap CBD products.

Despite the recognized legality of hemp, the government has not proactively enacted appropriate regulations for the industry. Because of this, end users bear the brunt of the irregular prices and high tax rates that are imposed on the end products.

In order to achieve a high profit margin, CBD companies have conveniently chosen to bill the bulk of the production costs to consumers.

RELATED: The # 1 Difference Between Cannabis Oil and CBD Oil

The government needs to take action by providing standard prices for various CBD products on the market. To protect producers, farmers and consumers, a uniform price range will significantly reduce the enormous difference in costs.

Consumers will also have access to the best products at affordable prices, depending on the government-approved price range. When this happens, the price of products like CBD oil can soon be as high as four cents per bottle, depending on the amount of CBD in the oil.

This article originally appeared on Cannabis.net and was republished with permission.