Paraffin Vs. Soy Candles - Pricing

[ChristinaD]

I have been testing 100% Soy and Soy Blended waxes and am curious to try out Paraffin. But I very confused about the pricing, I know Soy burns longer and is considered to be clean burning and  "higher" quality (by some). Therefore it is sold at a higher price point, however I see that Paraffin is actually more expensive per pound and that has me REALLY confused.

How are paraffin candles being sold for half the price of soy candles, yet the materials are more expensive (not to mention the fact that some of these Paraffin waxes shrink). I understand that Paraffin can require less dye and fragrance... but that can't account for that large of a price difference .. What am I missing??

Also, for anyone who considered Soy but is now selling Paraffin OR vice versa, what helped you to ultimately decide to go with one over the other?? 

Edited September 25, 2017 by ChristinaD

[coconut]

Prices of wax are based upon their raw components. Petroleum for paraffin, soybeans for soy. These are commodities and prices fluctuate based upon supply and demand. Finished candle prices are partly based upon cost and partly based upon what consumers are willing to pay as well as popularity of the items, and even by fashion and propaganda. 

[TallTayl]

Selling price of your candles is based on your marketing. If you make a wonderful candle and are confident in its performance,market it to people who are happy to pay whatever you ask. Often people market to those close to themselves and don't realize that local area is not their best market. Put your products in front of people want to buy them. 

 

Paraffin can burn as long as soy or other waxes, it depends on how you wick, etc. fragrance is the highest cost in my candles. If I can make a candle scented at 6% that performs every bit as well as one scented with 10 or12% my margin on the lower priced candles can be much healthier. 

[Flicker]

Pricing should ALWAYS be based on your cost to produce at a bare minimum. Soy, paraffin, blend...does not really matter. It's what it costs you to produce the candle in total.

[birdcharm]

As the old saying goes (something like this) ... an item is only worth what it can do for you.

 

If you really like a particular candle, the look/feel/scent, etc. ... if the price is within your budget, you may buy it. 

 

I used to sell candles at a local consignment shop and the gal at the shop marked a price wrong on one of them -- a small one that should have been marked rather low, but she marked it high.  It sold.  When I realized what happened, she said to me that you never know what someone is going to like, or what they'll pay for it. 

[ChristinaD]

2 hours ago, Flicker said:

Pricing should ALWAYS be based on your cost to produce at a bare minimum. Soy, paraffin, blend...does not really matter. It's what it costs you to produce the candle in total.

Right, I agree with that,  I just always assumed Soy would cost more to make, but looking into Paraffin it actually would cost me more to make ... surprised me as every paraffin candle I've ever seen has always been priced MUCH lower than soy (in stores) With maybe the exception of Yankee

Edited September 27, 2017 by ChristinaD

[ChristinaD]

On 9/25/2017 at 9:39 AM, TallTayl said:

Selling price of your candles is based on your marketing. If you make a wonderful candle and are confident in its performance,market it to people who are happy to pay whatever you ask. Often people market to those close to themselves and don't realize that local area is not their best market. Put your products in front of people want to buy them. 

 

Paraffin can burn as long as soy or other waxes, it depends on how you wick, etc. fragrance is the highest cost in my candles. If I can make a candle scented at 6% that performs every bit as well as one scented with 10 or12% my margin on the lower priced candles can be much healthier. 

Yes, I diff agree with this, I will price my items bas high as the market allows based on the worth of the product. I was just very surprised as I almost always see Paraffin at half the cost of soy and it is actually cheaper to make my soy candles! who knew?! But I also did not know they could burn as long! That's very interesting

[Flicker]

21 hours ago, ChristinaD said:

Right, I agree with that,  I just always assumed Soy would cost more to make, but looking into Paraffin it actually would cost me more to make ... surprised me as every paraffin candle I've ever seen has always been priced MUCH lower than soy (in stores) With maybe the exception of Yankee

Honestly after working for a supplier 17 years, I can say the cost is about the same. It's close enough that most often it does not make a difference. A 8 oz jelly jar for me with my soy I used 1 oz per lb of fo but it took 7 weight oz of soy to fill the jar. To the same fill, my paraffin also using 1 oz fo per lb took 6.4 weight oz. So less wax, the cost was a slight bit more but it evened out. I think it's pretty much a wash these days.

[Jcandleattic]

Regardless of the cost to make a candle, soy has a perceived value of being "better" than paraffin, because the soy marketers out in the real world (not suppliers, just general marketing, you hear it everywhere) always try to convince the consumer that soy is a better value, driving prices up. People will pay more when the perceived value of something is high, and if they think they are getting a better product. It's just a fact of life. 

 

3 things you should do - 

 

1) Know your costs: Find out how much your actual cost to make your candle is, not forgetting to pay yourself as well  - this is your baseline. 

2) Know your market: Find out what your market will allow - are you the only one making this type of candle, what are others pricing their candles at, etc., then price your candles according to this an your COG. 

3) Know your place: Be confident in your product and prices - NEVER apologize for your costs, and never waiver/give in just because a customer is trying to bargain with you. If you feel that there are too many people trying to haggle/negotiate, IMO that means you are in the wrong market for your product. (unless you are at a flea market, then expect that, because that's what they do!) 

 

Just my .02

[ChristinaD]

20 hours ago, Jcandleattic said:

Regardless of the cost to make a candle, soy has a perceived value of being "better" than paraffin, because the soy marketers out in the real world (not suppliers, just general marketing, you hear it everywhere) always try to convince the consumer that soy is a better value, driving prices up. People will pay more when the perceived value of something is high, and if they think they are getting a better product. It's just a fact of life. 

 

3 things you should do - 

 

1) Know your costs: Find out how much your actual cost to make your candle is, not forgetting to pay yourself as well  - this is your baseline. 

2) Know your market: Find out what your market will allow - are you the only one making this type of candle, what are others pricing their candles at, etc., then price your candles according to this an your COG. 

3) Know your place: Be confident in your product and prices - NEVER apologize for your costs, and never waiver/give in just because a customer is trying to bargain with you. If you feel that there are too many people trying to haggle/negotiate, IMO that means you are in the wrong market for your product. (unless you are at a flea market, then expect that, because that's what they do!) 

 

Just my .02

Agreed