Selling CBD products to power up profits

Power up profits by selling CBD products

What to know about this lucrative retail sales opportunity.

Relatively few full service carwash operators with interior customer service or waiting lounges offering retail merchandise have discovered the high profit power associated with the inclusion of CBD oil-infused and sublingual products. However, that norm is rapidly changing with the recognition of the recent explosion of the CBD market. Current U.S. annual sales of CBD products now top $5 billion and is projected to grow to $17 billion by 2025.

By far, the dominant beneficiary of CBD product sales are c-stores, which quickly discovered that displaying those products required a very small amount of counter area with high value items securely stocked under-counter or in employee accessible wall cabinets. The growth is also seen in the numbers of specialty stores that are 100% focused on the sale of CBD products and even the rapid increase of golf pro shops, which are experiencing high demand from players and members.

High sales potential

On-site display of free-standing exterior or interior signs simply stating “CBD products sold here”work like magic to propel sales and with little effort, profit margins are exceptional. Even with minimum quantities qualifying for wholesale pricing, sellers can expect a 40% gross margin and for multiple location carwash operators, volume purchasing can easily enable a 60% or greater gross margin.

As with most consumer products, resellers are now faced with multiple CBD brands and the question for you, as a carwash operator, is, “How do I choose the best brand?” 

Let me be blunt … some of you will care less about brand or quality. If the label says CBD, it’s good enough. But is it? 

For those with a commitment to providing a superior quality customer experience and a desire to maximize benefits for those who are members of loyalty programs, then be certain that your selection of CBD products meets those high quality standards.

Quality control

So, how does “quality” relate to CBD products? First of all, CBD oil is extracted from hemp seeds. Under what conditions was the hemp grown? Was the ground contaminated with pollutants? Or, was the hemp harvested in controlled organic conditions?

Now, to the oil. How was the oil distilled and to what grade? Think of this analogy with the quality of distilled liquors. There are low priced “bottom shelf,” medium quality and premium quality higher priced “top shelf” brands. 

With CBD oils there are three grades. Full spectrum contains many of the components associated with the cannabis plant, including traces of the potentially addictive THC as well as possible heavy metals. Broad spectrum processing, while eliminating THC, may well still contain undesirable contaminants. Isolateoil is the ultimate in terms of purity (think top shelf) and contains only the beneficialcomponents of the hemp seed with zero THC and zero contaminants.

If you want to focus on offering isolate grade products, then your brand choices are greatly reduced. Aside from fewer sources, consider that the percentage of CBD isolate in milligrams is also an important consideration. Most offer products that range from 250 milligrams up to 2,000 milligrams whereas a handful offer isolatesublingual oils and topically applied pain relief creams and roll-ons in ranges from 1,500 milligrams up to 5,000 milligrams. Higher potency oils are more expensive, but buyers use much less of the product and a single unit lasts longer.

Prestige brands of isolate CBD oil will readily affirm that their oil has been third-party lab tested to meet critical purity standards.Brands offering any grade that lacks such transparency should be regarded with caution.   

Benefits and uses

With all of that said, you may be wondering what exactly the benefits of CBD sublingual oils and CBD oil-infused products are.

Sublingual oil that is applied by holding the oil under the tongue is known to alleviate stress, anxiety, depression and mood swings, while enhancing cognitive response. These oils also have cardiovascular benefits, reduce many symptoms of PTSD and improve sleep quality. It is important to remember that these oils are non-addictive if classified as isolate grade, which has 0% THC.

Topically applied creams, transdermal patches/strips and roll-ons provide natural and fast relief of neuromuscular pain, joint pain, inflammation, post exercise soreness and provide significant relief to those suffering from carpal tunnel syndrome, and a wide range of pain conditions associated with arthritis, sciatica and fibromyalgia. Given the variable characteristics of each individual, the degree of CBD benefits will have a wide range of effectiveness from “zero” to “it exceeded my expectations.”

As with most OTC natural supplements lacking FDA approval, as is the case with CBD products, “This product is not intended to diagnose, treat, cure or prevent any disease.” That said, there is an abundance of published and positive medical opinions regarding the efficacy of CBD oils, which are freely available online.1,2

Carwash operators offering loyalty membership programs can also generate rapid CBD interest by executing an email-blast campaign with a discount and call to action.

The bottom line is with the addition of effectively promoted and merchandised CBD products, especially if you invest in quality isolate grade products, your retail sales volume and profitability will rapidly grow.

Editor’s note: While federal regulations do not prohibit sales or distribution of CBD products, a few states do. States where CBD sales are permitted include: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.




Richard S. Cooper is a Charleston, South Carolina, based consultant with a primary focus on the fast-evolving CBD market. He can be reached at 843-364-5413 EST between 8 a.m.-6 p.m. or by email at [email protected].

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