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Why Is CBD So Expensive? | Let Us Explain

By MaryAnn Stanger ND  •  0 comments  •   6 minute read

Why Is CBD So Expensive? | Let Us Explain

Ever wondered why that tiny bottle of CBD oil seems to cost as much as a family vacation? Or perhaps you've felt you need a detective's magnifying glass just to understand the price tag?

Well, fret not. In this blog, we're going on a thrilling journey through the tangled web of CBD costs. Get ready to uncover the secrets, myths, and surprising truths behind the enigma of CBD pricing! So, kick back, relax, and let us demystify the world of expensive CBD.

 

What Is CBD?

Cannabidiol (CBD) is one of the most popular cannabinoids found in hemp. The hemp plant contains more than 100 different cannabinoids, with CBD being the most popular.

CBD is mainly derived from the Industrial Hemp Plant, which naturally contains a higher CBD concentration than other hemp strains.

CBD is becoming popular for many health benefits. People use it for pain relief, better sleep, and relaxation. It helps calm both the mind and body.

 

Why Is CBD Oil So Expensive?

Several factors add to the expense of CBD products, including the journey from farm to bottle. Let's briefly touch on some of these areas that increase the cost of CBD.

FARMING HEMP (CBD) – Farmers must maintain THC levels below 0.3%. They do this through careful monitoring and testing, which is labor-intensive and increases the risk of crop loss.

If THC levels exceed 0.3%, the entire crop must be destroyed. This can lead to higher prices for legal hemp. Additionally, hemp farming requires specialized equipment and substantial storage space for drying.

MANUFACTURING – Extracting CBD from dried hemp often requires specialized techniques like CO2 extraction, which can be time-consuming and resource-intensive. Additionally, regulations surrounding THC and other cannabinoids complicate the manufacturing process.

As Tetrahydrocannabinol (THC) levels must be carefully monitored and removed without damaging other valuable compounds. Isolating individual cannabinoids for pure products like CBD, CBC, CBG, and CBN. These cannabinoids add to the cost because of the specialized equipment and research involved.

isolate CBD products

ADVERTISING – Unlike most other products, CBD ads are rare on TV, Google, or your favorite social media platforms.

If you were to google almost anything else, you would find a few ad listings for that product or service. However, if you Google "CBD Oil," you generally won't see ads. Advertising CBD usually requires more expensive methods, which can add to the cost of CBD. 

PROCESSING AND BANKING – Credit Card (CC) processing companies assess different levels of risk to businesses. Depending on the level of risk, the CC processor will raise or lower their charging rates. CBD is considered a 'high risk,' which inquires about the highest rates from the CC processors.

Few banks and processors will work with CBD companies. Allowing banks and CC processors to drive up the rates they charge. As Federal and state CBD laws are changed and altered, more and more companies are jumping on board to process CBD, which will help drive rates down.

QUALITY – The quality of CBD products can vary significantly, affecting their price. Sourcing ingredients from reputable farmers who prioritize organic practices, soil health, and regular testing can be more expensive.

While cheaper CBD may be available from overseas sources, these products often lack rigorous testing, may contain contaminants, and are produced in less-than-ideal conditions. Investing in a higher-quality CBD product backed by third-party testing can ensure safety and effectiveness. Remember, price alone is not a reliable indicator of quality.

Click here to see other things you should look for when buying CBD.

MARKUP - Why is full spectrum CBD so expensive? Is it because greedy business owners want you to empty your bank account? That may just be the case.

Each CBD company will offer CBD at different prices to help meet their set margins. CBD brands like Zatural offer competitive prices based on the per milligram (mg) of CBD.

Zatural does this with low overhead by manufacturing products in-house and keeping margins lower than other companies. That being said, Zatural's quality and products are second to none, and they have the best prices.

Would you like to learn why you might be overpaying for CBD? Click the link to learn more.

 

Are Certain Types Of CBD More Expensive?

Different types of CBD oil

CBD products vary in price based on quality, cannabinoid concentration, and the specific cannabinoids included. High-quality, organically grown CBD, often tested by third parties, tends to be more expensive.

Products with higher concentrations of CBD or other cannabinoids will also have a higher price tag. These compounds can be more difficult to obtain. For instance, while the hemp plant naturally contains high levels of CBD, other cannabinoids like CBC are present in much smaller quantities, driving up their cost.

 

How Do I Know If I'm Getting a Good Deal On CBD?

Multiple factors depend on the answer to this question. Let's touch on some of them below:

QUALITY – No matter how cheap the product is, you are probably not getting a good deal if the quality is bad. As mentioned above, quality CBD content comes from reputable farmers, clean soil, and organic growing methods.

Third-party lab tests often help answer the question of quality. Businesses like Zatural include all third-party lab tests on the product pages, making them easy to find and analyze. Check that the labs match the claims made on the bottle concerning the quality. 

Zatural lab test

Another thing you need to check while reviewing the lab test is the CBD milligram content. Make sure that the milligram content claimed to be in the product is actually in it.

PRICING – Once you have verified that quality is good, the next step is to look at pricing. CBD products range drastically in price and cannot always be compared straight across.

Businesses like Zatural offer several strengths and sizes, which alter the final price. For example, Zatural offers tinctures that start at $27.50 and go up to $360.

Knowing why there is such a large price difference and what that means is important. Most CBD companies will list a large mg number on the front of the bottle. This number is there to illustrate how much CBD extract is in the whole bottle.

However, a more important number to consider is the number of mg of CBD per serving. Each individual will require a different amount of CBD. To learn more about dosing, click here.

CBD dosage chart

Let's use Zatural's 300mg product for this example. Zatural sells a 300mg 1oz tincture for $27.50. You will get the price per mg if you divide $27.50 by 300 mg. This comes out to $0.09 per mg.

Zatural's strongest and biggest bottle is a 4oz 12,000mg bottle, which costs $360 and $0.03 per mg. Find a bottle that provides the best price of CBD per milligram to get the best deal on CBD.

 

How To Spot Fake CBD (Snake Oil)

Zatural CBD vs Snake oil

Fake CBD Oil is everywhere. As CBD continues to gain popularity, fake products continue to rise. Leaving many to feel like they are getting a great deal, only to be devastated when the product doesn't work.

Because is hemp oil expensive? No, hemp oil is not expensive, so don't buy hemp oil at CBD prices. Spotting fake products is not always easy. Below are some ways to know if a product is fake.

  • No 3rd party lab tests – Third-party lab results from legitimate labs help provide solid proof of the product's authenticity. The lab test you are looking for is a certificate of analysis or COA.
  • Unrealistic mg amounts – Products listed as containing 500,000mg of CBD in a 1oz bottle are not even possible. Converting mg to oz is roughly 28,000mg, and that would be pure CBD oil.
  • Reputable websites – Buy from reputable brands. Check Google reviews, BBB reviews, and more to ensure the business is real.
  • Claims – The FDA does not legally permit claims for cancer or other medical conditions. Watch out for the cure-all claims.

 

Sum It Up!

So, why are CBD products so expensive? The cost of producing CBD is significantly high, encompassing expenses from the cultivation phase through the extraction process, all the way to the standard business markup.

Purchasing CBD comes at a notable expense, yet the investment is worthwhile. Exercising caution and avoiding products masquerading as CBD while bearing a price tag suggesting genuine CBD.

Make sure to follow our CBD buying guidelines, which will keep you safe from falling for the many scams out on the market today. The other option would be to purchase Zatural high-quality CBD oil products. We have the best-priced products on the market with quality you can trust.

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For educational purposes only FDA DISCLAIMER

*FDA DISCLAIMER -These statements have not been evaluated by the FDA.

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