Local Chandlers LOW prices!!

[FaithfulScenter]

So I came across a page on FB of another local Chandler. She only makes tarts. There are no product photos, but she is selling clamshells for $1.50. I went and checked my price sheets. My cost on a clamshell was on average $1.47 each. How on earth can anyone sell that low?! There must only be a dropper of FO PP! I just don't get it!!

[Ravens]

But are they any good? You may have to risk a little money to increase the chances of making more, meaning that eventually many people will realize there is no "bargain" in buying an inferior product that does not smell or lasts as long as yours. Focus on what makes your product stand apart and why it ultimately is the better deal. Good luck!:smiley2:

[FaithfulScenter]

That is the very reason I stoped selling and have devoted the past 8 months to strictly testing. I want to know for a fact that I am selling the best quality product I can make. I was just boggled. I've not seen clams this cheap. I mean that's even lower than Walmart!

[Ravens]

Well, I have very little doubt you offer an excellent product. Have you asked for honest, unbiased opinions about your tarts? The way I see it, "they" may attract those who are looking for a bargain, and half of them will realize it's no bargain after all, and will quit buying them.... then they'll come to you.

You want to set your service and product apart from the Walmart "quality" and crowd; so come up with something that justifies your higher price; this, I believe, is one of those situations in which the turtle wins the race.

You can do it, FaithfulScenter! :highfive:

[SuzyK]

Those people who are selling for that cheap, bring a different target market. They are not my target market. I make and sell a high quality, long lasting wax melt and my customers know that and they'll pay the money for them. if the cheap ones aren't that great, they won't buy them again. And if they ARE good, the person selling them won't be in business long because they've lost money. I didn't have wax for awhile and I had a friend buy the walmart ones. She said they lasted for about 4 hours and that's it. She told me to buy wax again because she really likes mine. Several other friends said the same thing. So, I did.

I spent about 3 months researching even before I bought supplies. Once I did, I spent another few months testing.

Once you start selling again, I am sure you will be just fine!

[David Fields]

That local chandler may be making a great profit and may be producing a high quality product that is sought after by his/her customers. Our cost for a six cavity clamshell is .66. We sell them retail for $2.95 and wholesale for $2.00. So, we make a nice profit and sell lots. If you keep your costs low, you can sell at a lower price. Just my 2 cents.

[Candybee]

Another angle to this is she may be underselling herself on purpose thinking that she will drive customers her way then later change her pricing. My guess is she is very new to the candle/tart making biz.

You have a valid point David if you can afford to buy in large quantities keeping your costs down. My guess is this person is not buying in large quantities and underselling to beat her competition. If thats the case it won't work.

[SliverOfWax]

That local chandler may be making a great profit and may be producing a high quality product that is sought after by his/her customers. Our cost for a six cavity clamshell is .66. We sell them retail for $2.95 and wholesale for $2.00. So, we make a nice profit and sell lots. If you keep your costs low, you can sell at a lower price. Just my 2 cents.

Exactly.

There is zero chance of looking at a facebook page and magically knowing what her profit margins are.

[justajesuschick]

She could also have ZERO idea what her costs are. She may just have picked a price and gone with it. She could be making money or losing money.

I make for primarily for myself but once some friends wanted to buy melts, I started a new tab on my spreadsheet to begin capturing and calculating my costs (including shipping, which hurt) down to each square from a mold or melt in a cup and included cello bags, labels, fabric ties, ellipso cups and of course wax and FO. I did not fully burden my costs with fixed expenses like my Presto, scale, thermometer and the like but I should have and would have it I had a legitimate business. I am a tiny little set up with high costs.

[SliverOfWax]

That's true. Some folks just plain shouldn't be in sales. I've seen some pretty goofy questions asked on forums, specifically, asking if the cost of shipping wax and jars should be included in the overall cost of the product.

There could be any number of reasons why this facebook person's prices are low. I wouldn't concern myself. There are too many variables, not the least of which is just plain 'dumb'.