Did you get into the hemp flower game thinking it would be quick, easy money, with little risk and almost no legal repercussions; only to find out that it’s much more difficult to turn a profit than you thought it would be? If that sounds familiar, you’re certainly not alone.
Imagine investing your time, money, blood, sweat, and tears into growing a huge crop of CBD hemp flowers. You’re anticipating a nice payday when all your hard work is done, but at the end of it all, you find that you can’t sell and of your bud and you’re left high and dry – with thousands of pounds of flower and nothing to do with it.
Unfortunately, that is the reality of today’s hemp flower market. A lot of work and very little reward. Because of extreme competition, too much product on the market, lack of branding knowledge, and a few other factors, many hemp farmers are left in the red by the time harvest season rolls around.
To be clear, in this article we will be discussing CBD Hemp Flowers. Marijuana that’s high in THC, is a completely different market and entirely dependent on state and local laws. So if you’re struggling to sell your CBD hemp flowers, the following is for you.
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Oversaturated Flower Market
Let’s face it, in the last couple of years, the consumer market has become absolutely flooded with hemp flowers. New strains and vendors are popping up constantly, so simply having hemp flower isn’t enough to make you money anymore. It’s not a limited commodity, supply is just as high as the demand, if not higher and it’s gotten to the point where growers and retailers are selling it a rock bottom prices to undercut the competition.
Growing hemp can be expensive, especially if it’s your first time growing and you’re paying out of pocket for all your supplies – so once you dip below a certain price per pound, there’s no profit to be made. Its not worth its weight after the costs of harvesting and processing.
And while some are turning to extraction hoping to make a buck, the price of concentrate is so low that you have to have a streamlined and inexpensive system extraction system readily available. According to one Farmer, “It [hemp flower crop] has more value to us as compost than harvesting and drying it ourselves. And we have our own dryer we built last year. We still have our biomass from last year and are looking at selling at a shamefully low price point so that it doesn’t go to waste.”
Too Much Well-Established Competition
There are many company owners and farmers out there who are able to see beyond what’s happening in the moment. In other words, they’re good at spotting trends. Those are the one’s who got into the hemp flower game early and were able to corner the market and establish their clientele.
When someone searches “CBD hemp flower” on google, the first websites that come up belong to the larger names out there. Same thing when you check social media or reddit. To find newer farms and companies, a customer has to really do some digging and they have to be willing to assume the risk that comes with buying from a source that doesn’t have a lot of experience or reviews.
As a start-up in an ever-changing industry, it can be hard to compete; and the same applies if you are a new farmer. A good rule of thumb is: sell it before you grow it. Get a contract before you invest, that way, come harvest time, you’re not stuck with a bunch of flower, scrambling to sell it for a lower price than the next grower.
Better Brand Development
Branding is an important component of any successful business. One of the best things you can do for your company, farm, or product, is to set it apart from what else is out there – which is a relatively small selection of cornerstone products like flower, vapes, edibles, and concentrates. That said, branding can also be an incredibly difficult thing to figure out.
“You really have to work to find what … distinguishes your company from the next,” Taylor West, co-founder of Heart + Mind Media in Colorado. “Ultimately, those folks are all competing on things like price. And one of the only ways to break out of that cycle … is to develop a brand that people latch on to,” added Taylor, formerly deputy director of the National Cannabis Industry Association. “That really is the value of a brand. And it’s hard to put a dollar value on it, because it is to a certain extent intangible.”
Cannabis companies are face a slew of well-documented marketing obstacles such as local moratoriums and advertising limitations, restrictions and basically every social media network, and constant changes in the legal landscape. Despite this, quite a few entrepreneurs have been able to build unique and desirable brands, and have successful businesses as a result.
Be Prepared and Plan Ahead
I mentioned it earlier and I’ll say it again, the best thing you can do is sell your hemp flower BEFORE you grow it. Get a contract just like you would if you were growing any other bulk crop, and yes, they do exist for hemp as it is a federally legal crop under the 2018 Farm Bill.
Think about all your expenses, how much time you will invest in cultivation as well as during harvest and processing, and make plans to sell it before you do anything else. Email or call different retailers and online shops and get a feel for the experience of actually promoting and selling your product. No body like to cold call prospective clients all day, but you’d be surprised how many people will show interest. Be persistent but not too pushy.
Work with your clients on a contract that’s fair for both parties. If necessary, have an attorney to mediate the process and explain all the details and conditions. It’s too much stress and way too much risk to it any other way, and this year, many hemp farmers are left sitting on a thousands of pounds of flower with no customers.
Reach Out to a Consultant or Advertising Firm
If all else fails, consider investing in a good cannabis consulting group. It can sometimes be costly, depending on the level of intervention you will need in your business, but their goal is literally to make your business successful and your life easier.
An experienced consultant will keep track of the changing regulations in your area, inform you of any legal updates and best practices, audit your business to find any weak points that are impacting company performance, set you up with software, education, financial services, and real estate, and any other personalized business needs you may have.
Another option is to utilize an advertising firm. For example, we have a weekly subscription, The CBD Flowers Weekly Newsletter, with over 15k subscribers that are all looking for deals on cannabis products such as CBD hemp flowers, vape, Delta-8 THC, and more. Our ROI is very high, and if you have good-quality, lab tested hemp flower, we can work out a deal for you!
As you can see, there are many patterns you can easily fall into when you’re new at selling hemp flowers. If you prep, plan, and utilize some of the advice in this article, you’re sure to see an increase in sales very soon.
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