Jump to content
ellajoan

? about wholesale pricing

Recommended Posts

We have a possible opportunity to get into a few local boutiques ( a small local chain of 2 very popular fashion shops).  The shops have requested a line sheet w/ minimums and wholesale pricing.  I have no idea what that is, but I'm guessing it's a catalog of our candles with how many we'd like to buy and at what price.  I need some guidance in setting a wholesale price.  Our candles are 9 oz, and our cost per candle is $3.20-$3.40 each (biggest cost being shipping--dang it!).  Are we undercutting if we charge $7.00 wholesale and give a suggested retail price of $12-$15?  We are currently selling at a "booth rent" shop for $12 each or 2/$20.  But these shops are much higher end, and this will be wholesale.  Just needing some guidance.  Hubby thinks we are underpricing.  Picture of candle is below, just for reference..

IMG_0926new.jpg

  • Like 3

Share this post


Link to post
Share on other sites

Ellajoan...are you asking if 7.00 is too cheap to sell wholesale and should be more per your husband?

 

My opinion as my business is all wholesale....you are right on the money selling for 7.00 each.

Your cost is $3.20 - $3.40....I always round up to like figure 3.50 cost and times 2 would be 7.00...

Your candles are just lovely....great looking, great label, very clean looking....a very smart candle....love everything about it and wouldn't change a thing.

 

How are you going to sell?   Like a minimum of like 6 candles per scent?  Do you have minimum that you are going to ask for?

Are they buying outright?

Just curious..........do they have any other candle lines in their stores?

 

Wish you the best....Please let us know how you do...

I love to see good things happening.....

 

Trappeur

 

 

Share this post


Link to post
Share on other sites

Thanks, Trappeur.  Always appreciate your insights.  Hubby is an MBA so he feels like he has some advice to give.  :)  But I am not looking to quit my day job--just enjoying my hobby, making some extra spending money, and LOVE watching people get excited about our candles.  

 

They would buy outright.  They do have a few other candles in their shop--much larger 12-18 oz candles with very fancy, expensive looking jars priced at b/t $24-$26.  They were clearing out another candle line (only had 2 left) for $15 each that looked old and didn't smell very good.  Because the candles there would just be "extras," (the majority of their stock is clothing, jewelry, and shoes), I don't worry too much about minimums.  I was thinking of asking for a minimum of 24 candles, they could choose assorted scents based on what best fits their clientele (upscale place--totally different crowd from the rustic place where we also sell).  Do you think that minimum is too much?  Have you ever done a line sheet/catalog?  

 

Thanks again for your advice and kind words about our packaging.  We change the color for each scent.  

Share this post


Link to post
Share on other sites

I don't think 24 candles as a minimum order is too much what so ever.  I would say that is the least I would start with.  Granted it would be great to have gotten maybe even 36 to start with....but it is what it is if that is what you told them and you want to get your foot in the door right now, so that is the important thing and you have a great price point with them selling retail 15.00.  As far as the amount of scents and what they go with?  I wouldn't go less then 3 or 4 candles of each scent ...3 candles of each scent would give them 8 different scents....that's more than enough scents to start off with.  4 candles of each scent would give them 6 different scents (not bad either).  If you go with less than 24 candles, in my honest opinion (and you should tell the shop this also) a small order sitting on shelves looks like they are discontinuing carrying that line of candles and really to me it just doesn't make a statement what so ever.  You need to have a nice as full as you can collection of candles there.  This makes a nice impact.  And I hope they just don't scatter your candles around the store like I have seen in many a store where there might be 2 candles sitting over by the jean section and a few candles near the jewelry....etc if you know what I mean.  If they were to order a big enough size order from you where there would always be 3 to 4 candles of each scent on the shelf and then have a few scattered here and there, that would be ok in my book but to just scatter around....no would be my answer.  And I wouldn't be embarrassed to tell them this....

 

When I sell to shops I'm very easy to work with and very laid back.  I want to make a great impression with my line of candles and I try and develop a great working relationship right off the bat and get in with the owners.  It needs to be a win win situation for both of us.  I would say being that you have a lower priced candle than the other lines they have ....you have some good leverage right here.  Everyone is always looking to buy the cheapest they can.  Just keep in mind to get "strong" smelling scents in there that are good sellers as it's one thing to get an account and get your candles in there....but the secret is "repeat" orders.  That's the key.  Look at the types of scents that are in the other lines there.  ASK  the owners what are best sellers in scents.  Start off in that direction.  You say this is an upscale shop?  Well, now this is from my experience only....if they cater to a higher end clientelle I would think you would want a lemon verbena, a nice clean sheet type of scent like clean cotton or something like that, maybe something like a basil/sage, maybe some type of sandalwood, and being you have the holidays right upon us something in the fall scent area of pumpkins, etc, and even a christmas hearth or mistleoe....think of selling names.  But I would see what they have good luck in selling as far as scents go and start there and slowly introduce new scents that might work in your line.  Oh too...make sure you put UV inhibitor in all your candles...your going to need it.  Maybe you already do it now.....was just a reminder...:)  Best wishes and good luck to you and may you make lots of money!

 

Everything that I have talked about is from my experience only and how I have learned and what is best for me.....everyone has opinions so just take in what ever info you get from all of us here...

 

Trappeur

Edited by Trappeur
  • Like 1

Share this post


Link to post
Share on other sites

A lot depends on the market. In this area people retail the 4 oz jelly jars for $12 in garden centers and similar shops. Yes, 4 ounces for $12. 

 

Your jars are beautiful, and the size is generous. Personally, I think the price is too low to make it worth the venture. I really dislike the cost time two for wholesale. It leaves too little room for error. Should a few jars be damaged in transit there goes a good bit of your profit. Then you are essentially working for free :-/ 

 

Lela Barker of Lucky Break Consulting holds seminars and classes for small businesses to help them remain financially strong enough to last. 

 

@ComfortandJoy and words of advice? 

  • Like 1

Share this post


Link to post
Share on other sites

I have a flyer I make up for my wholesale products. From what the article on line-sheet talks about its pretty much the same thing as I do with my flyers. I list these items on the flyer:

  • Wholesale prices, including a price break if I have one for that product.
  • Minimum information (you can list a dollar amt.; eg. $100, or you can choose a product amount) for candles, I chose a two case minimum but that is because I sold to a lot of small retailers in the valley here. But I allow the customer to mix and match and worked with them on scent selection. Also, I sold by the case so they have to buy in sets of twelve. I feel as thou if a customer does not at least buy 2 cases it does not make selling them wholesale worth it to me. Also, less than that and they won't have an effective selling stock. More candles stacked on a shelf sell better than one candle here, one candle there, etc.
  • List of fragrances, I also include thumbnail pics of the candles.
  • I list purchasing info; what payment type I will take like credit cards, debit cards, checks, cash. Payment due date. If your customer does not pay on time will you charge them a fee?
  • I list my contact and company information, including website, email, phone, facebook and/other social media addresses, etc. and make sure my logo has a prominent place on the page so the customer will be sure to see and remember it.
  • I list payment, shipping, and return policies. Most companies like to be invoiced and pay in cycles when they cut checks. Are you prepared to wait up to a month or longer to be paid? If you prefer payment on delivery list that on your flyer.

This is a lot of info to put on a single one side piece of paper. So some of the print may be smaller than others. Think of putting together a resume of your product. You want it to stand out and be read. You want key points to be easy to read and stand out. So take the time to put together an attractive flyer that is simple yet effective.

 

PS. I always, always, leave business cards with every meeting, every sale. So even if I am shipping the umpteenth order to the same customer for two years I still include a business card. And if I have made changes to scent selections or pricing or purchasing or policy I make sure to send them a revised flyer so they always have current information on my product.

 

 

 

  • Like 2

Share this post


Link to post
Share on other sites
15 hours ago, candyb said:

Since I only do retail I had to look up exactly what a line sheet was. Googled some good material.

https://www.handshake.com/blog/what-is-a-line-sheet/

 

 

GREAT info Cb. GREAT info and a very good read. I didnt know a thing about this but its info that I would have been looking for in a month or two when I branch out into wholesale so TYVM

  • Thanks 1

Share this post


Link to post
Share on other sites

I agree with @TallTayl

 

You aren't leaving yourself enough wiggle room.  It is better to be at around 3x your cost.  Your branding is very nice. I see most candles that size selling for $18-$20 retail.

 

My wholesale Line Sheet details my policies, order minimums, etc.  I have photos of each of my items with brief description of the product plus wholesale and MSRP.  Lucky Break Consulting designed them for me.  If you check out the website, Lela, the owner has a wealth of information.  Follow her social media as she shares lots of very helpful info on wholesale.  

 

Hope that helps! :)

  • Thanks 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×