How to Choose a Bulk Extract Supplier

Finding a concentrate manufacturer to represent your California cannabis brand can be a stressful and arduous process. There's a lot that goes into the process besides finding the lowest price per gram, like trust, quality, and lead times. Let's discuss some strategies for navigating the process!

Price vs. Quality

With the price of concentrates and flower being at an all time industry low, it can be difficult to gauge price in congruence to quality. In the past, low prices were associated with low quality. However with the steady increase in distribution of operating licenses throughout the state, competition has steadily become more aggressive and companies who have upscaled were suddenly forced to scale back in order to survive.

For example: Three years ago if you walked into a dispensary, the average price of live resin extract was around $40-$50 per gram BEFORE TAX. Fast forward to now, and you can find popular brands selling for $25 per gram OUT THE DOOR. Their quality AND overhead costs haven’t necessarily risen or fallen in that time, yet the price has dropped dramatically. This is directly due to increase in competition. These brands were able to charge far less to customers than they were, yet they were making a killing at the expense of their buyers. Extraction labs are now able to purchase A-Grade material at incredibly low prices, allowing them to compete with vertically integrated brands who grow and extract their own flower and concentrates.

To summarize, smaller businesses typically have lower overhead costs, which can make them more cost-effective partners for your company.

Reliability & Customer Service

Another highly important factor to consider is how reliable your potential partner is. A question your company must ask is: How large is this supplier, and will your brand matter to them?

When doing business with large scale operations, you’ll have to understand that your needs are not necessarily their top priority. Large operations service a wide number of other clients, and their primary concern is typically to protect their profitability. This means that if your company’s orders aren’t as large as other companies, you’re often kicked to the back of the line when it comes to your needs and concerns.

An additional element of concern with large companies servicing a large number of clients is chain of command. When you reach out to large suppliers with your questions and concerns, you’re typically going to speak with an employee of the company whose job is to relay your message to someone else, who then relays the message up the latter, and so on. You’re stuck waiting while they delegate a response internally.

When dealing with micro business operations, often times you’re making a call directly to the owner of the company and will receive an immediate response. Basically, they care more about you. You matter.

Payment Terms

Many companies have a non-negotiable policy when it comes to payment terms, and require cash on delivery which can be associated with several negative risks and consequences.

A large concern surrounding cash upon delivery requirements is security. Since COD implies the physical exchange of cash for product, this can make the buyer AND seller vulnerable to theft. Working in the cannabis industry inherently exposes you to the possibility of being targeted by unknown entities tracking your movements in hopes of robbing large sums of cash.

Secondly, payment terms allow for budgeting and financial planning by providing a clear understanding of when payments are due. Furthermore, establishing a schedule for when payments will be received can also improve cash flow!

Payment terms can also open up the opportunity to receive discounts for prompt payments. Conversely, terms also hold both parties accountable and establish expectations and consequences for late or non-payment.

How Does This Apply To Our Company?

We are a cannabis extraction lab offering bulk concentrates and full scale white labeling services! Being a family owned and operated micro business indicates that we are not a large corporately structured business, and we are dedicated to two primary focuses.

The first focus is loyalty to our clients. Our selectiveness of who we partner with allows us to focus on a handful of dedicated and fruitful business relationships. We tailor each account according to clients individual needs, our owners are responsive seven days a week, and your satisfaction is of utmost importance to us. We are trustworthy and transparent in all of our practices, and hold ourselves to appreciable standards. We offer payment terms, quick lead times, and outstanding customer service.

The second and equally valued focus is to our production of top-tier concentrates. Our owners have created fantastic relationships with local craft cannabis cultivations, and have around-the-clock access to unlimited fresh exotic flower. We specialize in live resin extracts and have perfected the processes of creating amazing Diamonds, Batter, Shatter, Sauce, Sugar, Crumble, Butter, and THCA Isolate. We offer extremely competitive pricing without compromising quality, and we stand firm in grandfathering our clients in at unwavering price agreements commensurate to the most affordable market values.

Feel free to reach out any time to discuss the possibility of partnering with us!