The Problem
The industry has become a hazard of pitfalls of false, misleading, outdated or simply missing information regarding suppliers and products. This has created a whirlwind of confusion and risk for all parties in the supply chain including the unsuspecting consumer!
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The Problems All Start With Trust
- Supply chain Laden with False and Misleading, Outdated or Missing information regarding suppliers and products
- Creates Confusion and Risk for All Buyers in the Supply Chain
- Creates Potential Health Risk to Consumers
- Lab Reports are often falsified hiding dangerous micro-toxins or ingredients and over or understating Cannabinoid Levels – creating harmful consequences to consumers
- Manufacturers and Merchants May Mis-Represent Certain Industry Registrations such as Licensing and Industry Certifications that are Fraudulent and Mis-Leading and Customers are none-the-wiser as they have no way to validate and verify.
Compliance & Litigation Risk
- Regulations are Constantly Evolving and Changing at all Levels of Government
- Fines, Fees, Penalties and Enforcement Action are Becoming More Common and Will Continue to Grow in Size and Severity
- Reputation Risk of FDA Letters or Enforcement Action can Seriously Harm your Business
- Unintended Consequences Kill Many Business Because of a Non-Compliant Word or two on the Web, Social Media, Video and Customer Testimonials
- Lawsuits are Increasing as Plaintiffs’ Attorneys are Driving Class Action Cases as a Result of Mislabeling of Product and/or Non-Compliant Content
Time & Cost
- Rising Regulations and Litigation Risks are Driving Up the Cost of Compliance, Insurance and Banking Services
- Many Companies Cannot Afford a Dedicated Compliance Department
- It is Both Time Consuming & Costly to Subscribe to and Track all of the Sites Necessary to Monitor Changing Legislation and Enforcement Actions
- Tracking all of your marketing sources is a daunting task to ensure that it is up with the latest state or federal regulations and industry best practices
- The cost of compliance is growing so high that the illicit marijuana business has become cheaper to purchase product
Competitive Differentiation
- Quality Companies are Getting Lost amidst in the Crowd of Low Quality Providers that Offer Lower Prices Since they Do Not Spend Money on Quality Practices or Compliance to Protect their Customers
- Excellent Brands have no way to Differentiate and Prove their Quality to Buyers – it is Truly a Buyer Beware Situation with Zero Validation of Quality Companies and Brands
- “Buyers are Confused and Assume that Larger More Established Brands are the Only Flight to Safety Leaving Smaller to Mid-Size Brands Struggling to Compete —
—–According to the Consumer Brands Association 2019 Study Whether they have purchased CBD products yet or not, the majority of Americans (70%) were clear that they would be more confident in the safety of CBD products if they were manufactured by a large, well-known brand.”
Financial Impact
- All of these Pressures Hinder Growth and Profitability of Companies
- The Rising Cost of Compliance, The Growing Risk of Enforcement Actions and Civil Litigation are Negatively Impacting Profitability in the Sector
- Top Line Revenue Growth is Hindered as Companies Struggle to Compete in a Crowded Space of Both Quality and Non-Quality Brands and Consumers Can’t Tell the Difference – This is Impacting Enterprise Valuations in the Industry and Impacting Overall Gross Margins
Now that we know the problem…
What’s the Solution?
Let’s talk about how these problems are affecting your business and how we can help protect you before it’s too late!
Be inQredible!
Let’s set up a quick call to discuss how the
Qredible eCoSystem can help your business grow
while staying compliant.
I’m Ready to Be inQredible