Whether you’re brand new to CBD or have been taking it for years, there’s one fact that cannot be denied—CBD is not cheap. Any hemp grower or CBD manufacturer will tell you that the expense to grow, extract, or manufacture the active compound derived from hemp is a steep undertaking. The retail price generally reflects the amount of labor and materials that have gone into creating a consumer CBD product. Furthermore, high-quality cannabidiol (CBD) that is grown responsibly in the US is going to have an even steeper price tag, considering the substantial amount of care and quality control that has gone into creating a safer product for consumers.
Because of the high-profit potential for manufacturers, it can only be expected that dishonest companies have figured out how to cut corners and bilk unknowing customers. Misleading customers for profit is done in several ways by manufacturers.
How CBD Companies Cut Costs and Drive Up Prices
One way is to intentionally mislabel your product, knowing that it contains fewer milligrams of CBD than what is advertised on the product label. Less CBD in a product means less cost for the manufacturer. Luckily, consumers can identify these types of companies by requesting a lab report or COA (Certificate of Analysis). If the company does not have one or refuses to provide it, one can infer that they have something to hide.
Another tactic companies use to cut costs is to source cheap ingredients from abroad, while exponentially marking up the price of the finished product. Over 70% of CBD products sold in the US are sourced from overseas. The lack of knowledge on the source ingredient’s quality or quality control measures during the growing or manufacturing process should raise flags for anyone purchasing a CBD product sourced from anywhere outside of the US, where state and federal agencies oversee hemp farming. The problem of pesticides and contaminants in foreign grown hemp is a real issue, and some companies continue to sell these products in the US while charging premium prices to consumers.
The other more subtle, but widely practiced way CBD companies fool consumers is through marketing. Marketers know that CBD will sell. CBD is in the stage of its market lifecycle where nearly everybody knows what the substance is and has witnessed the beneficial effects of CBD, whether personally, anecdotally, or by
reading research articles or journals.
Because of its vast exposure, this means that less effort is needed to educate consumers in order for CBD companies to sell their products. People know what CBD is, and the demand is already there. Marketers have zeroed in on the fact that people are generally doing less research on CBD and trusting other less reliable sources, such as web reviews, recommendations from friends and family, and by reading marketing claims. So why is this a bad thing?
It means that companies can get away with advertising that all CBD products are equally as effective, even products that contain minimal amounts of CBD. This is simply not the truth, and marketers are knowingly misleading customers away from the facts.
CBD is not effective at low doses. The research is out there. It is well-documented in CBD clinical studies that participants take CBD amounts of anywhere between 100mg to 800mg daily, sometimes up to 4 times per day. Most CBD companies focus on selling products with too little CBD to be effective. They do this for one reason only—less CBD equals more profit for the company. Any CBD product with less than 1000mg of CBD is beneficial for a company’s profit margin but has little benefit to the consumer.
HempLand USA is an Outlier in the Industry
Aside from being the first company to grow and manufacture our CBD entirely within the USA from day 1, HempLand USA has taken several steps to address the issues mentioned above that are present within the industry.
Firstly, from the beginning, we’ve made our third-party lab reports fully available to the public. Each product has a lab report published onto the product page so that you can review the amounts of CBD in the product before making your purchase. This way, as a consumer, you can cross-check the milligrams of CBD listed on the lab report with the amount listed on the label.
Having an overage of CBD milligrams by a few integers (example— the product label reads: 1000mg, but the lab report reads: 1005mg) is a common occurrence and is not an indication of product mislabeling. A small percentage of CBD overages can be expected, even from companies that follow the rules. As a consumer, you want to watch out for products that have CBD levels that are less than advertised.
Checking CBD levels for accuracy is one reason why independent lab testing is an essential practice for the industry. Without a third-party lab test, it would be impossible to tell how much CBD the product contains and if it matches the advertised amount.
The second step we’ve taken is that we’ve increased our CBD concentrations to provide higher strength products and better value for our customers. The tincture strengths we offer are significantly higher than most other retailers. Higher concentrations of CBD are more effective and equate to higher savings per milligram of CBD. Our customers get more CBD for less, as we have not raised any prices, and have even reduced the prices on select products.
CANNABITOL® Soft Gels are now available in 1500mg (60 ct.) with a 20% decrease in price from before to accomodate our customer's needs.
Although we have raised the CBD strength in our Full-Spectrum and THC Free tinctures, the CBD concentration in our CANNABITOL® Full-Spectrum enhanced with ECS5™ has not changed. The additional support that ECS5™ provides increases CBD’s effectiveness and ability to support your endocannabinoid system (ECS).
In terms of effectiveness, the current strengths of ECS5™ are analogous to the new Full-Spectrum tincture strengths:
How to Calculate Price Per Milligram of CBD to Find The Best Value
To figure out which products provide the best value, we use a calculation to figure out the price per milligram of CBD. The calculation is simple and can be done by anyone, math wizards and calculator users alike! We find that this calculation is especially useful when comparing CBD products from other companies to figure out who offers the best value.
Price per Milligram Calculation:
Total Price of CBD Product ÷ Total Milligrams of CBD = Price per Milligram of CBD
For example, to determine the price per milligram of our Full-Spectrum tincture in 1000mg, the equation would look like this:
$59.95 (total price) ÷ 1000 (total mg) = $0.06 per milligram of CBD
In the above example, the product price is six cents per milligram of CBD. This equation helps you to determine the value so that you can compare it with our other strengths (or with another company’s products) to see what product gives you the most “bang for your buck."
This calculation should also tell you which companies are overcharging or price gouging, and reveal the poor value associated with low strength CBD products.
HempLand USA was founded with the overall goal of creating access to the highest quality CBD products for as many people as possible while remaining committed to transparency and education. We hope that you use this calculation to help you understand exactly what you’re paying for when you purchase a CBD product from HempLand USA.