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While there’s no argument that CBD products are becoming popular, their significance to us humans is also expanding.
For example, as recently as 2021, studies are opening up in the human applications of CBD for diabetes. This is in addition to the already ongoing studies exploring the uses of CBD for therapy involving several psychiatric and neurologic conditions.
1 in 10 Americans, according to the CDC National Diabetes Statistics Report, have diabetes, and 1 in 3 falling into prediabetes conditions. On the other hand, the CDC also reports that 1 in 5 Americans will experience a mental illness in a given year.
With these statistics in mind, expect people to look for anything to aid their conditions, as some are major health concerns that snowballs with age and financial standing.
Because studies are lauding CBD for the power it poses in the health industry, it begs the question: are you overpaying for your CBD product?
How are CBD products priced?
Well, numerous factors contribute to how CBD products are priced.
Brands source industrial hemp from either independent or owned Farm Bill-regulated domestic farms. Followed by the overhead expenses of cultivation itself, farms incur legal costs too (e.g., state licenses, certification programs).
- Ingredients added to the CBD extract will, of course, add cost. The more premium the ingredients are, the higher the price.
- Depending on the manufacturing process a brand adheres to, hemp does not go directly from field to lab – rather, it passes through mechanical separation in a machine called a Decorticator. Only then can a lab extract the cannabinoids, terpenes, etc., using methods that also cost a pretty penny.
- Lastly, brands also invest a lot in good packaging to help keep their products shelf-life lengthy.
- Costs incurred from engaging in independent marketing providers/freelance marketers such as bloggers, graphic artists, etc. or;
- Having an in-house marketing department.
- Third-party lab testing adds to a CBD company’s costs. While a Certificate of Analysis (COA) isn’t required, it is vital in ensuring a CBD product contains what is advertised and poses no additional outside risk. As CBD isn’t technically regulated by the FDA yet, a COA gives peace of mind versus claims from a celebrity.
Other operating costs
- All the legal costs involved in starting and maintaining a CBD business.
- Costs in renting or maintaining owned facilities.
- Premium e-commerce payment gateways come in handy in receiving local and international payments at a fixed monthly cost. CBD Merchants pay much higher transactional fees as they are considered high-risk vs. other business entities
- Platform and marketing fees
- Shipping costs and all the logistics involved in distributing products.
- Insurance covers product and general liability coverage, which are protection requirements for setting up a CBD business.
- Manpower (Labor).
What is the average price range of CBD oil and other CBD products?
Brands often publicly justify their products’ prices by CBD concentration. The higher the concentration, the pricier and vice versa.
If we’re to compare, brands have a slight variance in their CBD price per mg. However, there is a great price disparity between “types” of CBD products (such as oils, edibles, flowers, topicals, etc.) because of the different delivery methods and the convenience each possesses.
So, what is the average CBD price per mg for each type of CBD product?
|PRODUCT||AVERAGE INDUSTRY PRICE|
|CBD Oil||$0.04 to $0.2 per mg. High-quality ones average at $0.12 per mg.|
|CBD Tincture||$0.04 to $0.2. High-quality products averaging $0.12 per mg.|
|Edibles||$0.02, with the high-potency ones at $0.06, averaging out at $0.04 per mg.|
|CBD Topicals||$0.2 to $0.3 per mg and average at $0.25 per mg.|
|Inhalation Products||Vape juice runs a similar price average to CBD oils and tinctures, going from $0.07 to $0.02. Premium or high-quality CBD e-liquids average at $0.12 per mg.|
|CBD Oil Cartridges||$0.09 to $0.18 per mg and average at around $0.12 per mg.|
|Concentrates||They average at $0.05 per mg and can be even cheaper if purchased in bulk.|
|CBD Flower||Although a bit more finicky due to THC, there are legal cannabis strains within the THC limit. |
Knowing how to utilize CBD flowers for various methods such as smoking or incorporation of edibles benefits you an average CBD price per mg of $0.03 per mg.
TIP: Calculating CBD price per gram is a great way to compare prices rather than serving size. It helps single out products with unnecessary ingredients or irrelevant clout to bump the price but not the actual CBD content.
Signs that you’re overpaying on your CBD products
- If a product doesn’t give you the results as marketed.
- No matter how cheap fad CBD products are, they will always be overpriced because they don’t simply work. Most importantly, they pose health risks. Fad CBD products can be:
- Brands that are reluctant to give full disclosure on their products’ ingredients. Some products imply having CBD and washing it with fancy labels. This is why COA is such an important test of product integrity.
- Quite stifling with claims. As impressive as CBD is, most of its benefits are still unverified. CBD products that claim they cure cancer, Alzheimer’s can be legally dubious.
- Sold from shady locations or websites.
- If the cost outweighs the benefits.
- If there’s a cheaper brand alternative that offers the same results.
- If it’s not affordable at the moment and given that it’s not truly a necessity for now.
Overall, an overpayment is a combination of fact and discernment. A product’s worth depends on each person. What might feel expensive to her might not be to him.
Imagine a $40 bottle containing 400mg of CBD and compare it to a $200 bottle containing 4000mg of CBD:
– The $40 bottle with 400mg will cost $0.1 per mg ($0.1/mg) whereas;
– The $200 bottle with 4000mg will cost $0.05/mg.
At first glance, the $200 will look more expensive but is cheaper in the long run. By the time you consume 4000mg with multiple $40 bottles, you will have paid $400.
Be wise with your purchases!
The Wrap: How to get the best bang for your buck
“Finding a product that works best for you while operating under a reasonable CBD price per mg is the biggest bang for your buck.”
- Buying bulk can also get you some sweet discounts from many vendors, including subscription-based ones.
- Remember to consider the different methods of consuming CBD that give you the most bioavailability.
RELATED: The Advantages of Each CBD Consumption Method
- Like any other purchase, you won’t know what’s the best CBD product out there not until you try everything. CBD subscriptions like Hemp Crate Co. offer the option of exploring the best CBD products existing in the industry.
In addition to Hemp Crate Co.’s subscription plans, they are currently offering their cheapest CBD subscription option to date. The Tincture’ N Treat option is only $29.99 per month, $20 cheaper than their starter boxes.
“These statements have not been evaluated by the Food & Drug Administration and are in no way intended to treat or diagnose any physical ailment or disease.”