I am being asked to do an open house and people want to buy. Advice and thoughts?

[justajesuschick]

I make melts. JUST melts. As a hobby. A fun, addictive and expensive hobby-haha!

I sold at a one day event at my corporation. Other than that I have been giving melts away to friends and family along with making for myself, of course.

Even though I do not have a business, being in the corporate world for 27 years means that I am a business minded person. I have spreadsheets that detail cost per cello bag if I make melts in silicone molds and I have done another tab now that I make in Ellipso cups. Okay, full disclosure, I have spreadsheets for everything. So, I know my hard costs. Down to fabric cost for ribbon and safety stickers for the bags.

A good friend asked if she could buy some of the melts I had left over from the one day event for stocking-stuffers for her adult daughters, mom and sisters-in-law.

Gave some to 2 other friends and tonight they have come back and asked if they could buy "$X worth" or if I would hold an open house. One friend is a realtor and would consider offering them to home owners trying to sell or new homeowners as a house warming gift.

I know all it takes to register and run a business, my insurance agent also happens to be my closest girlfriend and I know all about product development, marketing and advertising. These things and more have kept me from wanting to pursue this as a business. After all I have read as a consumer and now here on shipping and such to high-strung customers, establishing a website and fulfilling orders seems more than unappealing, even though I know how to do those things practically working on our digital marketing at work.

I wonder for those of you who sell to close friends and family-do you sell at cost or do you sell at a margin based on your cost? May depend on who is buying, I suppose. My daughter-in-law will never pay for a single melt from me no matter the reason, a friend of a friend may be a different story, for instance.

I know this could be a slippery slope and I am mostly inclined to politely decline and just keep making for myself and sharing.

Just thought that I would ask.

[Guest OldGlory]

Here's my take on it -

Don't start to sell unless you can make it profitable. If you under price your stuff, you will start to resent the time spent, the ridiculous requests for such n such a fragrance, and 'oh, no, that's not it at all, I'm not paying for that'. It can spiral out of control in short order.

Maybe you could have a sample case and take orders. That would keep it small.

If you are really itching to try it, go for it! It's quite a learning experience!

[HorseScentS]

I, too, don't feel comfortable charging my family members more than my costs, but I'm not even charging anybody anything yet. I've wondered what to charge family members, since I don't feel like I should be cashing in on family.

[justajesuschick]

Thank you!

My full time job keeps me too busy these days! I have this site on in the background as a fun release during the day. I do not have capacity for starting a new business.

I agree with your point about pricing. I do not mind sharing but when a friend's mother-in-law (that I do not know) now wants some and so on, my sharing could get out of control!

Perhaps I could make them for a nice mark up and that would weed down the interest to just a few people!

They all know that I only make scents that I like so I can avoid the temptation to make things beyond that. The open house idea was the only thing that was appealing to me. I could put out all that I have made and let anyone who wishes to come sniff and buy some Sunday afternoon. Cash and carry.

Still do not know if I will or not. Suppose that I at least need to establish a price for those who want to buy more of some I have given them. Especially if they plan to gift them. Cannot give it ALL away!

Appreciate your comments and insight very much!

[HorseScentS]

You could set your pricing at a nice markup for non-family members, and then give a family discount to your relatives and ask them to keep it hush hush. Then your family can buy for themselves and also to give as gifts; but you'd have to watch out for relatives who might buy from you so they can retail them to others, as they should pay wholesale in all fairness if their going to retail your product. So your pricing could be: family members buying for personal use and gifts just pay your cost, anyone including family who wants to retail your products pays the wholesale price, and everyone else pays the retail price. You can do quarterly open houses, or maybe family members can sell them for you at melt parties.

[SuzyK]

I charge my friends and family members the same as I do everyone else. They are happy to pay it and some even pay more since they know this is a main source of income for me. I do give out freebies and testers every once in awhile to them and they like that.

I love doing open houses! I always sell really well at them.

[HorseScentS]

I charge my friends and family members the same as I do everyone else. They are happy to pay it and some even pay more since they know this is a main source of income for me. I do give out freebies and testers every once in awhile to them and they like that.

I love doing open houses! I always sell really well at them.

Thanks for that insight about selling to family.

[justajesuschick]

Thanks so much!

Will ponder it all.

Now. To decide what to charge for my 2 ounce cups.

Thanks again!

[SuzyK]

I sell mine for $2. Some say I should charge more. $2 each or 10 for $17.

[justajesuschick]

I was planning 2 for $3. Perhaps I need to review my numbers.

Thanks!

[HorseScentS]

I sell mine for $2. Some say I should charge more. $2 each or 10 for $17.

I think that's very fair and the bulk discount is a deal!

[Guest OldGlory]

You know, B & B works pricing structure is one item at a pretty high price and multiples at a deep discount. Makes you want to NOT buy one even if you don't need 5 - and you go ahead and buy the 5.

People usually have a $ amount which they will spend at the drop of a hat(mostly around the $10 mark), and a $ amount where their resistence will kick in. For some the upper limit is around $20. You could make the first price break around $10 and the next price break somewhere between $15 and $20. For example - $2 for one, $10 for 6, $15 for 10. I would spend the $15 for sure!

[HorseScentS]

You know, B & B works pricing structure is one item at a pretty high price and multiples at a deep discount. Makes you want to NOT buy one even if you don't need 5 - and you go ahead and buy the 5.

People usually have a $ amount which they will spend at the drop of a hat(mostly around the $10 mark), and a $ amount where their resistence will kick in. For some the upper limit is around $20. You could make the first price break around $10 and the next price break somewhere between $15 and $20. For example - $2 for one, $10 for 6, $15 for 10. I would spend the $15 for sure!

There's a candle shop in a nearby city (small, rural city) that prices their clamshells at one for $3.99, or six for $20.00; and the owner told me people come in and buy six for $20.00 all day long.

[SuzyK]

yup, people will go for the deal a lot. When I do open houses, most people buy my 10 for $17. I used to have it 10 for $15 but had to bump it up a bit to help with rising costs. I will be adding a lot of new products in the next couple of months so I'm working on deals for those as well.

[ksranch]

I charge my friends and family members the same as I do everyone else. They are happy to pay it and some even pay more since they know this is a main source of income for me. I do give out freebies and testers every once in awhile to them and they like that.

I love doing open houses! I always sell really well at them.

I'm with Suzy - if you start out charging them low - they will expect it even when you go into selling.

[SliverOfWax]

I'm trying to figure out what the question is.

An open house is a sales event. If anything, I would raise my prices. My family doesn't get a discount, nor do my friends. Some of my long time heavy buyers do if they buy in quantity, but it's not much. Just enough to make them think they're special.

That said, I may give stuff away, just because. But for a sales venue, people pay. I don't care who they are. If they want wholesale prices, they can get a tax number and set up shop, just like everybody else.

[justajesuschick]

I'm trying to figure out what the question is.

An open house is a sales event. If anything, I would raise my prices. My family doesn't get a discount, nor do my friends. Some of my long time heavy buyers do if they buy in quantity, but it's not much. Just enough to make them think they're special.

That said, I may give stuff away, just because. But for a sales venue, people pay. I don't care who they are. If they want wholesale prices, they can get a tax number and set up shop, just like everybody else.

I am usually TOO clear.

My question was if some here held open houses or sold just to friends and family. In particular, if one might even if not being interested in committing to a full-fledged business.

My followup was to ask if prices were adjusted and/or modified as a result.

I appreciate you answering my question even if it was not clear what I was asking!

[SliverOfWax]

Well, imo, if someone wants you to do an open house and wants to buy, there's really no question, other than yes, do it or no, don't do it.

If you give stuff away now, or sell it cheap, you'll never convince those people to buy once you've changed your mind or business plan. It's no different than craft shows. Committing to a full-fledged business shouldn't be part of the question. It's a 1-time event.

Do the open house, tell everybody you know to come and bring a friend, have a little contest for a freebie (guess the scent, or something fun and easy), but sell everything else at your cost x 2 or 3, and have fun. It's an easy way to recoup your costs and gives you money to move forward.