What to Look For in A CBD Supplier

For CBD distributors, the success of their business depends on the quality of their suppliers. Without a reliable, high-quality CBD manufacturer, the likelihood of market capture and organizational growth...
CBD Suppliers

For CBD distributors, the success of their business depends on the quality of their suppliers. Without a reliable, high-quality CBD manufacturer, the likelihood of market capture and organizational growth is not high. But how does one select a CBD supplier? And why are they so integral to the profitability of your CBD operation? The goal of this article is to detail the value of a strong CBD supplier as well as its most desirable characteristics. If you are looking to enter the European CBD market for the first time, here is a breakdown of what you should expect from your CBD producers in Europe.

The Importance of Selecting Great CBD Producers in Europe

As a CBD distributor, your goal is to successfully sell as much product as possible, or at least the optimal amount to drive profitability. The difficulty of being a distributor in any industry – let alone the European CBD market – is that you have to optimize both halves of your vertical channels. This is because distributors often utilize B2B and B2C business models. Rather than simply selling the product you manufacture, you have to acquire your supplies from a third party and then sell those to a variety of different customer bases. As a CBD distributor, you have to connect the right product to the right consumer. This might mean that you have multiple suppliers for multiple customers. Depending on the quality of your manufacturer, this intermediary web of transactions can become incredibly cumbersome. One of the biggest reasons for this is cost.

The Need for Precise CBD Quality Controls

In recent months, as CBD regulations in Europe begin to hit a turning point, many businesses have fallen victim to poor quality management. One business owner in Ireland, for example, had their home and business raided by the EU government due to a failure to meet its specified THC threshold of 0.2%. Moreover, this CBD entrepreneur’s customers were threatened with arrest for having interacted with this local CBD cafe. While the legal ambiguity of these guidelines may play a large role in the frequency of production penalties, it does underline the importance of reliable and precise CBD quality control.

A CBD supplier with effective quality controls can help ensure the financial success of a CBD distributor as well as its avoidance of legal penalties. The best CBD producers in Europe are the ones that integrate in-depth quality controls throughout their processes, not just cultivation. Facilitating the production of consistently high-quality, safe, and legal products requires a lot of observation, testing, and oversight, all of which is fueled by the standard of your CBD quality controls. If your CBD supplier’s quality controls are poor, you may be inviting unnecessary risks that could significantly harm your business. For example, if your CBD products were to contain a THC concentration that is above 0.3%, then that entire batch of supplies could be seized and destroyed. A penalty this severe could irreparably damage your bottom line, depending on the size of the order and the financial strength of your business. But quality controls don’t just ensure the avoidance of legal penalties; they also ensure the quality of your product.

Reliably High-Quality Products

One of the biggest drivers for the CBD market is its health-promoting benefits. From pain management to sleep regulation, CBD customers use cannabidiol for a variety of health-related reasons. If these CBD-derived products are of a lower quality, then the efficacy of these desired benefits may be substantially worse. Similarly, considering the poor bioavailability of CBD and its methods for delivery, any reduction in quality could dramatically affect the cost-effectiveness of your product. If customers feel as though there is a disconnect between the value of a product and its price, they may be less inclined to purchase it over the long run. While the distributor of these CBD products has some control over the value of their commodities and experience, the majority of it is derived from the CBD supplier. Sometimes, however, the quality of your CBD producers in Europe is not enough. In fact, how you communicate your quality may be just as important as the product quality itself.

Embrace Transparency and Testing

While the European CBD market has a great deal of potential, the speed of its development is severely limited by the present biases towards cannabis and CBD. The ingrained lack of trust amongst government officials, regulators, and the general public presents a huge obstacle in terms of sales growth. Fortunately, building trust is not as hard as it seems. By partnering with a transparent CBD supplier, distributors can better communicate the quality of their product, its safety profile, as well as its ingredients. The more information you present, the more likely it is that customers will trust and align with your product. In an industry where many firms disregard the welfare of their customers, a transparent CBD supplier could be a compelling competitive advantage.

As demonstrated above, there are several reasons why a trusted CBD supplier can help elevate the quality, profitability, and productivity of your business. While all of the aforementioned characteristics are important, there are also other factors that should be considered, such as customer service, price, product selection, and alignment. The best thing you can do as a CBD entrepreneur is to create a list of the features and benefits that are most valuable to you. Using this list of priorities, selecting the right CBD supplier should be swift and simple.

Author: Philipp Fuhrmann

Mr. Fuhrmann has extensive experience in international compliance, international business development and in navigating legislative frameworks in the Hemp and Marijuana industry. He is currently the President and CEO of CanX CBD Processing Corporation, a wholesale manufacturer of premium CBD. Mr. Fuhrmann also has a background in corporate structuring and has raised funds for a variety of projects ranging from technology to medicinal marijuana, hemp, and CBD.

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