Who benefits from cannabis grading, you ask? More like who doesn’t benefit from cannabis grading!
Cannabis grading creates trust and transparency. It legitimizes the industry by establishing a baseline quality level and helps determine fair market prices. Grading provides third-party, objective scores for each unique product based on indisputable data collected by lab tests and AI-backed professional cannabis grading software. It also delivers appraisal information and insights based on accurate, objective transactional data.
Cannabis grading helps growers and suppliers with quality control and lets buyers and consumers know exactly what they’re getting. The benefits are endless.
Read on to learn how cannabis grading helps each specific vertical of the industry supply chain.
SUPPLIERS, GROWERS, SELLERS
An Efficient and Effective Quality Control Program
Using routine grading services allows growers, sellers, and suppliers to manage their product, measuring its consistency, and taking note of any changes that occur throughout the harvest. If the product gets different grades over time, the grower can make internal changes to their farm and business, tweaking their process to refine the result. Regular grading helps growers to produce the best possible product by analyzing a large sample size of their cannabis and providing them with important data regarding the condition of their goods.
A Fair Market Price
By having their cannabis or hemp graded, suppliers, growers, and sellers can determine the exact value of their product and compare that with the rest of the industry, gaining valuable knowledge of the marketplace outside of their own farm. Grading helps growers collect industry data, confidently price their products, and further appraise their crops in a fluctuating marketplace while accounting for external variables.
An Efficient Sales Tool
Just like home inspections before purchase, an objective analysis of cannabis instills confidence in the buyer. Grading increases trust with buyers and establishes a value based on transactional market information and qualitative analysis completed by someone other than the buyer or seller. With a strong idea about material information, there is less concern thanks to fewer unknowns. The qualitative analysis is performed by a third-party expert tool that records objective information, rather than subjective personal opinions, reducing the debate between sellers and buyers over personal preference.
BUYERS, PROCESSORS, MANUFACTURERS, DISTRIBUTORS, BRANDS
Consistent Product
Grading is essential in sourcing trusted material from outside growers. By sourcing and purchasing graded product, processors, manufacturers, and distributors can streamline their process by choosing what to use based on qualitative data. This allows greater consistency when manufacturing, processing, or distributing a product, which leads to greater trust in the brand.
Save Time & Money
Outsourcing quality control and sourcing to a trusted third party saves buyers time and energy and allows them to focus on running their core business.
Know What You’re Getting
Grading ensures material is quality-verified before making commitments, reducing the need for returns by up to 90% and reducing the need to double-check that orders and deliveries actually contain the proper material.
Certificate of Grade
Access to a Certificate of Grade allows buyers to make better and more confident purchasing decisions without controlling the cultivation themselves. Each COG outlines all the information needed for each lot of material to make a purchase decision. Processors, manufacturers, and distributors have all the information they need at their fingertips when they order graded material.
Confidence
Trust and transparency are enhanced through grading and certification, maximizing efficiency when purchasing products from suppliers.
MULTI-STATE OPERATORS
Consistent Sourcing
Guarantee consistent sourcing with graded product. Cannabis that is effectively quality controlled and accurately ranked and classified is crucial when promoting brand consistency and meeting guidelines and standards for trade between states or countries.
Certify Quality
Grading verifies the entire supply chain to ensure that quality parameters and specifications match from facility to facility, state to state, and country to country. Depending on how vertically integrated they are, MSOs can certify quality via third parties, presenting that information to retailers and consumers using QR codes, creating a new level of transparency. Distributors, brands, and manufacturers can also certify their products and present the grading stats in this fashion. If MSOs are not vertically integrated, the same benefits realized by buyers and sellers help MSOs scale more efficiently.
MARKETPLACES AND EXCHANGES
Trust in Third-Party Verification
Third-party verification provides an objective breakdown of the material’s quality, and quality-verified material assures everyone throughout the supply chain and marketplace that the product has been evaluated and analyzed by a trusted source. Because the grading company doesn’t work for either the buyer or seller, their evaluation of the product is based solely on collected quantitative and qualitative data, with no allegiance to anyone else involved in the transaction. Without third-party verification, transactions lack trust and transparency. If there are no quality standards in the marketplace, the atmosphere is fraught with potential for major problems in a burgeoning industry.
Faith In Each Product
Classified products are uniquely labeled and complete with lab results, proving that products are exactly what they say they are. Grading and quality verification establish a high-quality supply; which is essential for any marketplace or exchange to work effectively.
Stakeholder Trust
Grading provides a common language, which ensures the support of stakeholders. Stakeholders are always given the necessary information that’s required to make smart, seamless, and efficient buying and selling decisions.
BROKERS AND AGENTS
Stand By Your Product
Quality-verified material assures brokers and agents that the product has been evaluated and analyzed by a trusted third party, allowing them to confidently vouch for said product without having to see or smell it.
Be Trusted
Third-party verification provides an objective breakdown of the material’s quality. Because the graders don’t work for either the buyer or seller like brokers and agents do, this third-party verification puts brokers and agents in a position to be more trusted and objective because they’re not doing the evaluation themselves. The grade is based solely on collected quantitative and qualitative data. The grader holds allegiance only to the cannabis, based on objective criteria, and is not beholden to the buyer or seller.
Have Confidence
Grading allows brokers and agents to confidently source and sell products without going to every farm or worrying that what they’re offering buyers will eventually be a transactional headache. They can market to clients without doing all of the product evaluation themselves. Grading saves brokers and agents a lot of leg work, travel time, and expense. Thus, they can better focus on their jobs, supporting and serving buyers and sellers, and helping them meet their business goals.
So, who benefits from cannabis grading? We all do. Everybody wins when trust and transparency are prioritized. Better quality material, fair market pricing, and consistent products all help this industry to flourish — and cannabis grading ensures all of that is possible.
.
Comments