Bumblebeebabe Posted January 4, 2014 Share Posted January 4, 2014 Ok so I have a question. How many scents do you keep stocked for your lines? I was thinking I wanted 15 or 20 with an extra 5 rotating ones depending on holidays. I was thinking that was good. But my ex BF and Business Partner(or I thought until she slowly pushed me out and screwed me over, long story.) has a stock of 300 scents all are at least 8oz most are at least 1lbs and a some are more. That seems way excessive to me. She is always complaining that she barley breaks even and no one can make a real business out of this. It is just a hobby...She makes melts only no candles and has been doing it for about a year. I have run a very lucrative business before so I get how things work for the most part...the first year is always hard...but is carrying so many oils possibly part of why she makes so little...or am I totally off and am going to have way to little scents? She says she sells about 240lbs of wax a month at least. So when taking everything in to consideration both what needs paid out and what she brings in...If I were running her business I would be making by this point(not in the beginning because you need to build it up) at minimum $2000 a month. Am I missing something? Could it really be just how many random oils she has? Also don't the oils lose scent or go bad after a time if not used? At this point I am happy we are not in business together, but is this what I have to look forward too? almost bring in 4 grand a month and then pay everything out again? It makes no sense. I have never had that much issue running a business. If she were making candles and having to put money in to testing still sure but she pretty much has been selling for about a year now. I do NOT get it. Quote Link to comment Share on other sites More sharing options...
doglvr Posted January 4, 2014 Share Posted January 4, 2014 I plan on being online in the spring to sell tarts and so far I have a hundred scents. I considered the financial output, but as a customer who bought tarts forever and then as someone planning to sell, I realize that times have changed since I bought tarts. Back in the day.. LOL... almost everyone had the same scent options and you stuck with whoever made them the best. Now it seems, especially watching the tart hauls on YouTube and reading the various customer forums available, they are looking for more unique scents than Cinnamon or Hillbilly Homebrew. I've even read many posts that say if a place doesn't offer at least fifty scents, they don't even bother looking because under fifty and all you're going to get are the old standard scents available everywhere. They can be renamed of course, but I would think that might anger some customers who thought they were getting something new and unique to try and come to find out it's just their (for example) honeydew melon they've always purchased. It's easy for people to say make an excellent product and you'll have repeat customers, but getting them to become customers in the first place is the key and scent options is huge anymore. People are different though. If I go to a site that has over two hundred scents, I get tired of reading all the descriptions, but if I go to a site with less than say fifty, all I see are the regular scents I've always purchased and even I seek out new scents to try. Just my opinion. Remains to be seen if I ever make any money at this... LOL!Jackie Quote Link to comment Share on other sites More sharing options...
Scented Posted January 4, 2014 Share Posted January 4, 2014 OK so inventory-wise, everything still sitting on the shelf (made or in parts) still counts against your income. The 8 oz scents cost more than pounders, so there's a loss in $. If she's barely breaking even and moving 240 pounds of wax a month in tarts (then something else is wrong or she's fibbing or she's turning her profits back into scent/wax.) I have more than 300 scents on my shelves (which is partly why I'm in trouble with my partner most of the time, but a lot of it is for testing and then I don't want to sell what I think is crap to someone else so it stays a little longer until I can think of something to mesh it with or it just dies, but this isn't about me.) This is just my off-the-top-of-my-head thoughts. I do offer a boat of scents, but they aren't always in stock. I also carry a variety of products and most of the fragrances I have work in all of them. Some don't though. I have had to try really hard not to get suckered into everyone's next "totally yum" suggestion and I don't try out a bunch of suppliers any more. I have who I like and if something one day just doesn't do it for me, then I'll go scent hunting. Must be why I have three-four different dragon's blood FOs, two nags, six patchoulis, once-upon-a-time six sandalwood mixes that's down to four (but going back up soon, because I'm in love with the two I put into wax recently) ... I also have a group (a very large group actually and it might be rather embarrassing) of FOs that I think are divine ... they just don't move and I'm convinced it is because I love them so much So I strayed from topic there ... I just got the feeling that your ex-partner is trying to get you to give up the idea of making and selling so that eliminates some competition. If that isn't it, I think she's spending too much money on something else (not necessarily scent) and should look at how she can reduce her costs. I know say four cents isn't much of a savings say between ordering 500 or 1,000 of something, but it's savings and even more when you buy 10,000 .... in my case this was for sleeves. We also save by making our own end caps for our candles instead of paying whatever to get I think a minimum of 500,000 sent from China of which we'd have to pay for the shipping from there to the states and then from the supplier to us ... so it was like nah. We will find a way to get what we want. We also bulk up on wicking, but that wouldn't be a cost your ex-partner has. So maybe she's not doing things in bulk and might look at doing so. Quote Link to comment Share on other sites More sharing options...
ksranch Posted January 5, 2014 Share Posted January 5, 2014 Like doglvr, I won't read through that many, but do believe you need a a good variety including unique ones. But, I totally agree with Scented - if she really is moving 240lbs of wax per month and not making a decent profit - she has problems other than too many scents. Quote Link to comment Share on other sites More sharing options...
David Fields Posted January 5, 2014 Share Posted January 5, 2014 We carry around 100 FO's. Many are seasonal that we pour only during the season. But you have to bring in new scents to present to your customers; they get tired of the same scents. We "try" to remove one scent from our list for every one that we adopt to keep the list as small as possible. Scents that just don't move we pour into candles and clamshells and discount them to move them. We learned a long time ago after we trashed some FO's that had gone bad for sitting so long that it is not cost effective to carry too many scents. Our rule of thumb is (for 25 pound tubs) if we don't reorder within one year, we drop it. As far as profit, hard to say. IMO to make a decent profit you should always be trimming costs and finding ways to raise sales. Someone I respect once said that you never buy anything for your business if it is not going to make you money. Quote Link to comment Share on other sites More sharing options...
annie123 Posted January 6, 2014 Share Posted January 6, 2014 At one point I had between 300 to 400 fragrance oils. Many of them never sold, what a waste of money. You have to accept that you cannot offer every scent in the universe. I would start with 25 solid sellers and built it from there. Quote Link to comment Share on other sites More sharing options...
TallTayl Posted January 6, 2014 Share Posted January 6, 2014 This all depends on your business model. One soaper collegue offers well over 100 scents last count. Her model keeps her extremely profitable because her clientele want loads of choices. She never has to carry finished stock, making all to order. I envy her model.Places like Yankee Candle do quite well having scores of scents to choose from also. Their product line is fairly limited, so it works for them. It is harder for people who offer an entire line of scented products to keep every single scent in every product. i offer 50+ soap scents during the high season, and about 20-25 in other products (candles, hair care, lotions, etc). It works for my venues where people expect a huge variety and want what is new, different and familiar at the same time.Lack of cash flow has more causes than just 'too many scents'. What is her overhead every month? Is she repaying a business loan? Is her pricing model faulty? Does she pull a paycheck? I would not be too hasty to judge another business as a bad business unless i saw the books. The first year is the hardest.... Quote Link to comment Share on other sites More sharing options...
Bumblebeebabe Posted January 6, 2014 Author Share Posted January 6, 2014 She Charges $1 per oz approximately. I was supposed to be in business with her so I know how she runs things. That is how I know how much she make and how much she pays out I know what her overhead is...or should be. I did however learn that she gives away about $5 to $15 in free stuff for every order she sends out.She feels this helps her customers to like her more. Is that a normal business practice in the soap and wax worlds? I just worry that what I think should happen and what I think should work as a business model will not work and that how she is doing it is normal and I can't believe people do this and make NO money ever. Quote Link to comment Share on other sites More sharing options...
TallTayl Posted January 6, 2014 Share Posted January 6, 2014 She Charges $1 per oz approximately. I was supposed to be in business with her so I know how she runs things. That is how I know how much she make and how much she pays out I know what her overhead is...or should be. I did however learn that she gives away about $5 to $15 in free stuff for every order she sends out.She feels this helps her customers to like her more. Is that a normal business practice in the soap and wax worlds? I just worry that what I think should happen and what I think should work as a business model will not work and that how she is doing it is normal and I can't believe people do this and make NO money ever.Freebies of $5-15 in retail or actual dollar cost value? What is the order value? What is the margin on the order? People argue both sides of the samples/freebies coin. If the promotion is not translating into future or larger sales, then maybe it is time to change the practice or tweak the policy. Is the conversion of freebies to sales being measured? I send product samples out with online orders. It results in future full size product orders of the item enough of the time to be very profitable and continue doing it. When someone is buying based on a description of a scent online where they cannot smell it and fall instantly in love, it helps in my case to give them a scent sample of new things to promote the new scent. It made the difference between many scents making the cut or not. At in-person venues the products can sell themselves as they are sniffed, handled, tested, etc. Online samples fit my business model. Look at your own business model and see if it makes sense. Quote Link to comment Share on other sites More sharing options...
Bumblebeebabe Posted January 6, 2014 Author Share Posted January 6, 2014 she sends out 5 to 15 dollars in retail. but with every order. that is going to really eat at your profit. I could see sending maybe 3 1 oz samples but she sends a few full sized products as freebies. So I think that may be a big part of the issue. I know not to do that. But I do see sending a few oz out. so they can try new things or things they have never ordered. I am just happy I am not working with her after all. but I take from all of you that I may be under carrying scents on my list. So I will need to find more to carry. but I think being so new I will stick with just around 50 to 60 for now. Do you all think that is good? Quote Link to comment Share on other sites More sharing options...
TallTayl Posted January 6, 2014 Share Posted January 6, 2014 she sends out 5 to 15 dollars in retail. but with every order. that is going to really eat at your profit. I could see sending maybe 3 1 oz samples but she sends a few full sized products as freebies. So I think that may be a big part of the issue. I know not to do that. But I do see sending a few oz out. so they can try new things or things they have never ordered. I am just happy I am not working with her after all. but I take from all of you that I may be under carrying scents on my list. So I will need to find more to carry. but I think being so new I will stick with just around 50 to 60 for now. Do you all think that is good? The only one that can answer that question is you... Your market, marketing, concept, and business model are unique to you. You can always start small and add on as you go as you find your niche and hit your stride. Quote Link to comment Share on other sites More sharing options...
Bumblebeebabe Posted January 6, 2014 Author Share Posted January 6, 2014 Ok. That makes sense. I have run a great business before I do not know why I am questioning myself... more so based on how someone else runs their business. I think I just worry to much lol. Quote Link to comment Share on other sites More sharing options...
Candybee Posted January 6, 2014 Share Posted January 6, 2014 Several years ago I cut back on the number of scents I offered. It was hard to do but then I started seeing more profit than loss because I started to focus more on quality, value, and uniqueness than quantity. I learned to think more about offering a product you can't buy anywhere else. Its hard to do when so many are offering the same product. So you have to think about what makes your unique? and is it a better product? If you have that down you are halfway there. The other half depends on your bookkeeping, managing, marketing and sales skills. Sounds like you are on the right track. Quote Link to comment Share on other sites More sharing options...
Bumblebeebabe Posted January 6, 2014 Author Share Posted January 6, 2014 Thanks Candybee. Quote Link to comment Share on other sites More sharing options...
Lorrie Posted January 9, 2014 Share Posted January 9, 2014 Bumblebeebabe are you making a profit in your business? If so, then don't worry about what she is doing. If she can't make a profit and you can great for you! Quote Link to comment Share on other sites More sharing options...
Bumblebeebabe Posted January 10, 2014 Author Share Posted January 10, 2014 Lorrie, I am new to doing this on my own so I don't know if I will make a profit. But you are right. Like I said I was just worrying to much about how well I will do based on other peoples business. Quote Link to comment Share on other sites More sharing options...
iansmommaya Posted January 10, 2014 Share Posted January 10, 2014 Bumblebeebabe are you making a profit in your business? If so, then don't worry about what she is doing. If she can't make a profit and you can great for you!I so agree! I would put your energy and focus in your own stuff. Especially since she is your former partner. DO what you do and let the rest slide. Quote Link to comment Share on other sites More sharing options...
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