Selecting a new product line can be a daunting task, especially with hundreds of product variations to choose from. Here are 6 things to consider when planning a successful new product line.
6 Tips when selecting products for your new Hemp Product Line
1. Common Price Points
Pricing your products correctly is one of the most important things you can do to be a successful brand (the other of course being quality products). Selecting a proper pricing strategy needs to be done prior to selecting products. Here’s why…
You need to establish, ahead of time, your estimated profit margins and have the correlate with a retail price point with the highest volume of sales. For example, lets say you own a smoke shop and your average ticket (how much the average sale is) is $20. You’ve noticed that products at $15-$20 sell ten times those that are $21-$25. You also want to quadruple (4 times the cost) your money on all sales. The product you want to sell are bags of Delta 8 Gummies and you are looking at Discount Pricing Tier #3. You’re two choices are this:
- Delta 8 Gummies 10ct bag at $4.32
- Delta 8 Gummies 15ct bag at $5.76
If you want to quadruple your money, the 10ct Delta gummy bag would need to sell for a minimum of 4 x 4.32 = $17.28 and the 15ct bag would need to sell for a minimum of 4 x $5.76 = $23.04.
In this example, because you need to have a retail price under $20 to maximize sales, you’d choose the 10ct bag instead of the 15ct bag.
2. Budget & MOQs
Selecting a budget, which usually correlates with one of our discount pricing tiers, is a great place to start. At Hemp Lively, most of our products do not have a Minimum Order Quantity (MOQ). However, there are some products that do. This required minimum quantity may exceed your budget so it’s important to select products that have no MOQ. As a good rule of thumb, if Hemp Lively sells the products variation you’re looking for, then we keep the product in stock and there is no MOQ. However, if we do not keep the product variation in stock, then here are the two MOQs to keep in mind.
- Tinctures – If you’d like a strength, flavor, cannabinoid profile or other product variation that we do not have premade, then you’d need to purchase at least 20 bottles of that product variation.
- Gummies – If you’d like a gummy we do not keep in stock, the MOQ for a custom gummy run is 40,000 gummies.
For products that we keep in stock, you can order as little as 1 product with your Hemp Lively Private Label Account.
3. Sales Channels
How will you be selling the products? This is very important when selecting products for a new product line. Below you’ll see a list of Hemp Lively’s Best Selling Products. However, Hemp Lively sells all retail hemp products online. So, for example, our best-selling Delta 8 Gummies are 30ct jars, not our 4ct bags. However, if you plan on selling your brand to gas stations, 4ct or 10ct bags will most likely sell more because they have a much lower retail sales price.
Depending on your customer base and marketing messages, the ability to properly dose a product may be important. For example, let’s say you’re selling Full Spectrum CBD Tinctures and you recommend someone takes 20mg of CBD per day. The most common strength you see is 1000mg per 30mg which has 33.33 mg per mL or per full dropper. That can be extremely confusing to customers if they can’t easily measure out 20mg. A better solution would be to sell a 1200mg 30mL tincture which has 40mg of CBD per dropper. This way, if someone wants to measure out 20mg, all they need to do is fill the oil to the 1/2 dropper measurement marking that’s on the dropper’s glass pipette. Always consider the customer experience when selecting a product line.
5. Quality Beats Price Every Time
Most companies out there are so focused on buying low and selling high that they miss one of the most profitable aspects of running a cannabis business, repeat customers. Focusing on making sure your products are always quality is the most important thing you can do when starting a new hemp-derived product line. Whether its CBD Oil and Gummmies or a line of Delta 8 Vapes, the math is always the same. You can save a dollar or two on a an average or poor quality product and yes, you’ll make an extrat buck. But usually only once.
Or, you can pay slightly more to buy the best products available, and get a customer for life. On average, customers spend approximately $100 per purchase and most customers purchase monthly. Usually, with CBD, most people do not have the aches and pains, or stress to need CBD until they are about 40 years old. Average life span is about 80. Doing some rough math, thats potentially 500 monthly $100 sales because you chose a quality private label manfacturer or CBD/Delta 8 Distributor.
6. Best Selling Products
Always check similar companies to see which products are selling the best. Here’s a list of our Best Sellers and a star rating (1 star low, 5 stars high) which reflects Sales to both wholesaler and retail customers. The rating is judged as follows:
** Made the top of the list but sales are much lower than other products.
*** Must have products but lower sales, usually due to a lower ct gummy or a high mg tincture.
**** You need to have these products in your product line.
***** Best Sellers. These products make up around 60-70% of total sales.
- FULL SPECTRUM CBD TINCTURE 600MG NATURAL *****
- FULL SPECTRUM CBD TINCTURE 1200MG NATURAL****
- FULL SPECTRUM CBD TINCTURE 3600MG NATURAL ***
- BROAD SPECTRUM CBD TINCTURE 1200MG NATURAL ***
- BROAD SPECTRUM CBD TINCTURE 3600MG NATURAL ***
- FULL SPECTRUM CBD GUMMIES 10CT BAG STRAWBERRY 25MG ***
- FULL SPECTRUM CBD GUMMIES 30CT JAR STRAWBERRY 25MG *****
- DELTA 9 THC GUMMIES 10CT BAG CUBES 10MG *****
- DELTA 9 THC GUMMIES 30CT JAR CUBES 10MG *****
- DELTA 8 THC GUMMIES 10CT BAG STARS BLUE RAZZ 25MG*****
- DELTA 8 THC GUMMIES 30CT JAR STARS BLUE RAZZ 25MG *****
- HHC GUMMIES 10CT BAG CUBES WATERMELON 10MG **
- HHC GUMMIES 30CT JAR CUBES WATERMELON 10MG ***
- DELTA 8 THC TINCTURE 750MG NATURAL ***
- DELTA 8 THC TINCTURE 1500MG NATURAL ****
- DELTA 8 VAPE CARTRIDGE (UP TO STRAINS TO CHOOSE FROM) *****
- DELTA 8 VAPE PEN (UP TO STRAINS TO CHOOSE FROM) *****
- RELIEF SALVE **
For more helpful tips or a one-on-one consultation with a Hemp Lively Private Label brand specialist, give us a call at (850) 299-9624.