Selling Hemp: A Complete Breakdown
Cannabidiol derived from the hemp plant is in high demand. The global sales of CBD hiked from $3.4 -$11 billion in four years from 2014-2018. Experts predict that the hemp market will reach $20 billion by 2022. The ultimate goal of every hemp farmer is to make profitable sales out of hemp farming.
More businesses are opening for the various hemp products such as the smokable flowers, hemp biomass, and CBD isolates such as distillates and isolates. As a farmer, you must know how to sell hemp for higher profitability. Although the market for hemp looks promising, the farmers encounter challenges that hinder them from maximizing profits.
So, how can a farmer effectively market their hemp for higher profitability? The ways of ensuring the hemp reaches the consumer starts from farming, processing, manufacturing, and retailing. Read on to understand how a farmer can sell their hemp profitably to the end buyer:
- The Farmers
To make higher profits as a farmer, you should look to partner or sell directly to the processors. Some processors are also the manufacturers. Some of the farms own a marketing company or retail store. A partnership in this scenario can fetch high profits for all the parties involved, especially the farmer.
Strategies A Farmer Can Use To Get High Profits Out Of Hemp Sale
The processors and End buyers
In most cases, the farms partners with the processors. For the farmer to make good profits directly from the end buyers, the farms should balance their numbers well against that of the processors.
The processors issue high commissions to ensure you are getting better profits from the end buyers. The farms can sell directly to the end buyers or market through social media platforms.
- Vertically Integrate Retail
There are different types of hemp products. Each product must go through different levels of processing and adhere to the stipulated standards by respective states.
The farmers can partner with the manufacturers who, in most cases, are certified processors. Once raw hemp is transformed into finished products, they can sell it directly to buyers. The farmers can sell the products online through various social media platforms, their retail outlets, create well-optimized websites, or as wholesalers to other retailers.
- The Processors
In this industry, the processors can determine the prices and the profits that the farmers make. If you fall in this category, understand your profit margins; play fair in the rates you offer and receive. Create strong business relationships with the farmers, manufacturers, and retailers. Listen and address the concerns arising from the involved parties.
The Strategy for the Processors to Make Profits
- Processing and White Label Services
The processor must have a good networking relationship with everyone in the industry to successfully meet the hemp products’ demands. The processor should be able to meet the processing and distribution needs of the farms. To the manufacturers, he should be able to supply high-quality products and white label services. Additionally, the processor should be able to provide quality products and services to the wholesalers and retailers.
- Vertically Integrate Manufacturing and Retailers
The white labeling services are needed in every aspect of manufacturing. To sell profitably, you should offer the white labeling services to the manufacturers. Alternatively, you can focus is a specific manufacturing process to create unique branded finished products.
- The Manufacturers
Creating high quality and unique products is the best way to make high sales as a manufacturer. More and more customers will line up in your outlets if you major in producing high-quality products and services.
Strategies the Manufacturers Can Use for High-Profit Margins
- Retail Chains
The ultimate goal of every manufacturer is to have their products stocked in every retail outlet. You can connect with as many retailers and consumers by providing excellent services and products with offers. Market your products heavily through social media platforms, direct marketing, and digital marketing.
- Ecom and Brand Awareness
One way the manufacturers can make high-profit margins is by distributing their products directly to the consumers. The best way of selling to the end buyer is through advertising on various online platforms such as social media and optimizing your company’s website. Additionally, you can have a physical retail outlet where there is a large concentration of end buyers.
- The Retailers
The role of a retailer is to get the finished hemp products to the end-user. The hemp products market is relatively new, and people are slowly learning about the products. Whether you are running a brick and mortar store or an online business, you have to target the right customers and have a good marketing strategy. If you are selling online, you can use ads, landing pages, and social media advertising to use the right keywords.
Strategies for Retailers to Make High-Profit Margins
- Brand Awareness
Retailers need to have the customers visit stores, both online and physical stores. To reach out to the customers, retailers need to create brand awareness through advertising, marketing on social media platforms, create well-optimized websites. Additionally, the retailer has to locate his store to attract prospective customers strategically.
- Product Development
Being close to the end buyers, the retailers have a high chance of innovating on the products. You can create high-value products for your customers as you maximize your profits. Developing the hemp products will attract more customers hence more sales and profits.
Conclusion
As a farmer, you should learn how to sell hemp profitably to the end buyer. The best way of making high profits is by collaborating with a licensed processor for value addition. Know what your customers want and customize to meet their needs. To get more customers, market your products across all platforms and give discounts. If you have questions or want to maximize your profits on the sale of your hemp, call POTSpesh for help.