As retail stores popped up throughout the state, they are limited to selling products from a select group of suppliers (state-licensed producer-processors). With few options, it is important for smart retailers to differentiate through interior design, branding and customer service. However, the WSLCB also presented limitations to both internal and external branding and marketing options.
As a supplier of paraphernalia, we quickly realized all the many brands of paraphernalia were no different. They were all sourcing from the same factories in China and simply adding a different design or name for differentiation.
The formula is simple:
- Take a generic pipe, herb grinder or vape pen,
- Add your own logo or design on it,
- Sell it for a considerable mark-up as your own brand.
For example, a local company that claims to produce their own brand of vape pens is called Vuber. The generic or non-branded versions of their products can easily be found on Chinese websites such as www.dhgate.com or www.alibaba.com. When you look at Vuber’s ‘Comet’ battery selling for $14.99, you can find the same “non-branded” battery on DHgate for $2.07. The only difference being that you’re buying a printed logo on the same battery and Vuber offers a Lifetime Warranty. Considering that their is roughly a 33% failure rate with these batteries. It’s safe to say that a store could buy direct and offer their own Lifetime Warranty for much lower costs.
AlderEgo recognized this price disparity and began offering basic private label services for Retail Store owners. The benefits were obvious for being able to procure at much lower prices and offering more competitive retail prices. The added bonus is that retailers can now extend their brand and logo with every customer using their brand of accessories.
Today, AlderEgo Distribution helps over 80 different retail brands produce and sell their own brand of cannabis accessories today.