It's differentiation. If you have something different, just as good or better at a competitive price, you will sell. How can any company sell a new product if it is not different or better? I can buy a bag of sugar at Woollies for $2 with a fancy label and colourful artwork or I can buy a bag for $1 with No frills brand. I think the sugar is the same and from pretty much same farms in Queendsland. But the difference is the power of persuasion of the labelling. I recently bought some allergy pills and the chemist told me that the unknown brand was made from the same factory here in Australia with the well known international brand and she thought they were exactly the same except the brand names and the prices. I think the claim of uniqueness helped AC8 share to jump a lot higher than otherwise. If they only talked about producing cannabis oils and pack them in gel capsules just like all other companies, we would not get that level of $1.80.
AC8 Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held