Page 18 - HME Business, January/February 2020

“When a DME or HME company becomes an authorized reseller, we sort of take them through a step by step process,” he says. “We kind of have a attend 10 steps for success and they go through and they kind of tick off each one of those. But it always starts with training.”
Besides the products, PurWell educates its providers on topics such as product placement in the store and how to engage a customer on the topic of CBD.
“You can be moderately successful just having a small display with CBD products up near the counter,” Fedele says. “But you’re going to be much more successful. Our most successful resellers are those that engage with their customers. So they have prominent displays that attract attention to the fact that they sell CBD.”
BE A COMMUNITY RESOURCE
It’s critical for a provider that plans to offer CBD products to serve its community. Does that mean that the provider needs to have a brick and mortar location? It depends on the provider, Fedele says.
When Fedele ran an HME business, he said boots-on-the-ground presence was an absolute given. However, these days, the scenario is a little more fluid. While a provider with a brick- and-mortar location will certainly have an easier time reaching a local market, it’s not the only
way to approach serving local CBD markets. “Over the years, obviously for the last 10, 15 years with competitive bidding, and this trans-
formation of the industry, it’s gone to more
of a general kind of a retail business — with
a brick-and-mortar and also an e-commerce model,” He explains. “We’re working with several larger, Internet-based call center type companies that do DME supplies, like CPAP, diabetic supplies, and those sorts of things. And they’ve implemented programs to market and sell CBD products. So I wouldn’t necessarily say brick-and-mortar.”
What really counts, Fedele says, is how well the provider reaches the local market and how well it connects with those CBD customers.
“I would say that any DME company with a direct consumer relationship, whether it be brick and mortar or e-commerce, they’re in the best position I think to market and sell CBD prod- ucts,” he says.
In terms of sales, like most retail HME prod- ucts, the key is for the provider to engage with the customer and share their expert knowledge. Simply saying to the customer, “I don’t know
if you noticed, but we’re now selling this full- spectrum CBD; have you ever tried it,” can unlock considerable sales potential. Most everybody has heard of CBD and many people have already tried it, so engaging their customers in a conversation and getting them interested in the product is an easy way to start the sales process in the store.
“HME providers are looked upon as a healthcare professional; the information they provide is trusted by their customers. And with so much information that’s out there on the internet, how do you know who to believe and what to believe? For customers to be able to go to a trusted source really helps.”
— Jonathan Fedele, PurWell
CBD’S REGULATORY ENVIRONMENT
CBD represents a substantial market opportunity with lots of demand, but what does Federal and State law say? How do you make sure your business stands on solid ground?
The intersection of hemp products and the law is typically the main point
of trepidation for providers when it comes to offering CBD. From a legal and cultural perspective, cannabis has been so stigmatized that some providers might think there’s something illicit about CBD. There isn’t. In fact, the Federal government has made it a point to legitimize CBD when it comes to the law.
For some time, CBD products were existing in a legal grey area where the federal government was concerned. The Department of Justice and the Drug Enforcement Agency considered any part of cannabis — and that includes CBD — a narcotic, but they had not strictly enforced any laws when it comes to what is called “industrial hemp” products that include less than 0.3 percent THC, which covers most CBD prod- ucts. As a result, many farmers and others further down the CBD economy have been reticent to participate in the business — until now.
So what changed?
The 2018 Farm Act, removed industrial hemp production from the Controlled Substances Act. Signed into law at the very end of the 115th Congress in late December 2018, the Act gives Federal protection to both hemp farmers and CBD sellers.
That said, there are still state statutes with which providers must comply. This is where things get a little tricky because the situation with state laws concerning CBD is all over the map.
To begin with, there are 10 states where cannabis is entirely legal for medicinal and recreational use — Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington. In those states, it is clearly legal to sell and use CBD oil.
Conversely, there are three states — Idaho, Nebraska, and South Dakota — that legally
prohibit all cannabis-derived products, and CBD sales remain illegal in those states. In addition to those states, 23 other states allow medical marijuana, and that
includes CBD products. And another 14 states have more nuanced or narrow limita- tions on the sales and use of CBD products or medical marijuana.
This should paint a picture of a legal landscape that is evolving toward ubiquitous legal support for a product that is non-recreational and whose intent is beneficial and is non-psychoactive.
The National Organization for the Reform of Marijuana Laws provides useful state- by-state resources on its web site at norml.org.
So, how should a provider interested in CBD proceed? Well, after reviewing this information and getting a solid idea of where their state stands, Jonathan Fedele, CEO of CBD product maker PurWell suggests that providers check out the U.S. Department of Agriculture, which per the 2018 Farm Act, is in charge of regulating the hemp industry. Also, each state’s department of agriculture can help serve as a resource as well, because the Act requires each state to generate a “hemp plan.”
But ultimately, the best source of advice will be an attorney who specializes in cannabis — and already there are firms specializing in hemp-related law.
“If [the regulation] isn’t crystal clear, then we’re always going to advise that they speak to an attorney who specializes in cannabis,” Fedele says. “Not their uncle Joe who’s a personal injury attorney, but someone who knows the industry.”Two examples of prominent firms with dedicated CBD resources would be the Hoban Law Group and Greenspoon Marder. An experienced attorney that understands local marijuana and CBD laws will ensure your business is standing on solid legal ground.
18 HMEBusiness | January/February 2020 | hme-business.com Management Solutions | Technology | Products