In this short beginners guide, we are going to tell you how easy it is to price CBD. This is useful for both CBD shoppers as well as entrepreneurs who are getting pricing from different brands and trying to figure out their own pricing or where they’re going to price their products.
You’ll notice that the pricing in the CBD space is all across the board. There are some really cheap products and there are some very high-end expensive products. We know people argue on what determines a
CBD Isolates are cheaper than Full spectrum CBD
What you will typically notice is that isolate products are almost always cheaper than products that are made with full spectrum CBD. So it just depends on what you’re looking for and what you think is worth your money.
We are just going to be talking about the raw data on simply how to price CBD per milligram and that is where you’re determining the price that you’re paying per milligram. You can compare every product on the market just by using that metric. You have to have one metric and that’s the one that we are using in this guide because it’s the most objective when it comes to specifically just CBD.
The first thing to notice is that it’s really simple, so you might already know this and just really don’t need this guide but maybe this will benefit other people and who maybe just didn’t think about this.
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How to calculate the CBD Price?
What you do is you take any bottle of CBD and let’s say you want to compare the price of it to another bottle. If they have the same amount of CBD in there, so if you’re comparing a 1000 milligrams bottle to another 1000 milligram bottle that’s pretty easy.
But what if you’re comparing different brands and they have different amounts in each bottle? Like one has a 1000 MG and another has 1500 MG and you want to see where you’re getting a better price per milligram of CBD.
All you do is take the price of that particular product, let’s say 50$ and then you divide it by the total amount of milligrams of CBD that’s in there, let’s say 1000MG.
That means that each milligram of CBD costs 5 cents, so you know that you’re paying 5 cents a milligram on each milligram in that bottle. 5 cents times a thousand milligrams is $50.
Now you can compare it to any other bottle and you can see what the price per milligram of that bottle is. You just do the same thing and compare it with each other.
This is especially important for people that are trying to get in the business because when you’re getting offers from different suppliers, that’s how the pricing works, it’s per milligram.
The supplier would say you get a kilo and it cost this much. A kilo is a million milligrams and that way you can compare kilos to other kilos and you have that objective to go in.
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Is it worth paying more for a CBD product?
If there’s a product that works exceptionally well, is it worth paying more for? Of course! If Charlotte’s Web works the best for you but it’s more expensive than a bunch of other products, it’s worth it because it works for you. So it could be and why is that? Different products have different terpenes and they have other cannabinoids.
The main point of this little guide was to talk about the price per milligram and that’s something that you can do with any product. Let’s say you’re researching the market you can do a price comparison very quickly by using this exact formula and it’s the objective that’s used in the space.
In the future we’ll probably see pricing for other cannabinoids and they will be compared one to one to each other. But for CBD this is how it is right now. It’s priced per milligram.