A lot of Canadian entrepreneurs ask whether or not buying CBD in bulk makes sense. Considering that opening a CBD store in Canada is a viable business proposition, we figured we’d jump on the question and start answering.
That’s why you should stick around and read this article till the end. Once you’re done with it, you’ll know exactly why buying CBD in bulk makes sense in Canada. So with all that said, let’s start.
It Is Always Cheaper Per Unit
The best thing about buying in bulk is that it is almost always cheaper. Whenever starting a business, you should look for all kinds of ways to gain an advantage. One way to do that is by minimizing costs for products. While you could very well go out of your way and purchase CBD products and resell, you’ll be making very small profits. This is mostly because you’ll have to resell the product at a much higher cost. But if you buy in bulk, then you’re saving money per unit.
A lot of factors need to be taken into consideration to figure out just how much you’re saving. That’s why it’s best to get in contact with a Canadian CBD wholesaler and discuss pricing.
You Always Have Stock
Let’s assume that your CBD store is booming. For a lot of new businesses, scalability issues are the number one reason why they go bust. So one way to solve one particular section of these issues is to always have stock. To do that, it’s best to go with a wholesale partner that can restock whenever you’re going low. This eliminates a lot of problems such as needing to potentially halt operations due to lacking stock. And the best part about it? Your wholesaler will be more than eager to restock your shelves.
You Are Helping the Environment
Protecting the environment is important for a lot of Canadians. Although you won’t be bragging about it, buying in bulk is always better for the environment. When buying bulk, you are using a lot less packaging. Most of the CBD products will be wrapped in a single layer of plastic wrap to preserve packaging costs. This works in your wholesaler’s favor, and yours as well. Your wholesaler will save on packaging, while you will be saving the environment.
Your Customers Can Buy More
Let’s assume that your customers want to buy more CBD oil. If you don’t have the stock, then how would your customers buy bigger amounts? This is yet another issue that is very closely connected to scalability. Namely, you should always prepare to sell more to customers that want to buy more. A one-product-per-person policy won’t do you any good here.
You Pay Once
A lot of experts will say that buying in bulk does have its cons. And while that certainly is true, many would put this one in the cons section. We would argue otherwise but let’s address the other side. Buying in bulk means that you have to pay a large sum of money upfront. But considering the cost per unit and everything else we’ve said, that can only be a good thing.
Businesses would much rather pay a larger sum of money upfront to stock their entire store than to continuously pay for products at a much higher cost. The same can be said about CBD stores and buying CBD in bulk. You pay once and you’re done with it until a need to restock emerges. But the difference here is that you’ve made huge profits. This makes you financially ready to take another bulk order from your Canadian CBD wholesaler.
Your Costumers Save Money As Well
When buying CBD in bulk, you are much more flexible with prices. This means that you can potentially be competitive on the market, even though you are a new business. This is an obvious benefit for both you and the customer. By being competitive with CBD prices, more people will come in and potentially do business with you. Sure you might be sacrificing a percentage of profit, but it pays out in the long run. While you should always avoid undercutting the CBD market, make it reasonable for your customer to buy your products. The more reasonable the price, the more motivated your customers will be.
If Makes Sense If You Have the Storage
One last thing we have to mention is once again tied to scalability. Namely, buying in bulk does mean buying more. But one challenge of bulk buying is storage. Namely, if you don’t have any place to keep the products, then what will you do with them? Granted CBD products are relatively small in size and don’t require that big of storage space, but be prepared to tackle this issue.
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