Marijuana Business Magazine September 2018

The Whole(sale) Story By Joey Peña Data, market research and tax experts can help you set the right price points on infused products and accessories Y ou can be competitive on wholesale prices for infused products and accessories such as vaporizers without fighting a price war.The key: finding the sweet spot so your products are competitive with those of your rivals – without deep-sixing the bottom line. Lowering wholesale prices to compete with other manufacturers could do more harm than good. You might have to accept profit margins much lower than you want – if you’re making money at all – or you’ll back yourself into a corner and ultimately must raise wholesale prices, which is bad both for your brand and your relationships with retailers. “There are times in the market where you have huge amounts of competitors attempting to compete on price,” said Nancy Whiteman, CEO of Wana Brands, a Boulder, Colorado-based edibles maker that sells products in Arizona, Colorado, Nevada and Oregon and has plans to expand to the Florida and Illinois markets this fall. “In my experience, that’s not a successful long-term strategy.” Whiteman and other edibles and accessories manufacturers doing business in legal cannabis markets throughout the United States shared their strategies for setting wholesale prices that compete and don’t decimate profit margins. 72 • Marijuana Business Magazine • September 2018