Sales during the Recession yrs

[Candybee]

I thought you guys might find my experience with my sales % during the Recession and the followup years. To keep things in perspective, I began selling my products as a source of secondary income while still collecting a paycheck. I had dreamed of selling fulltime in the not too far away future... then the Great Recession hit...

 

2006 - my first year selling

I started in Sep. so I did not have a full yr of selling

 

2007 - 458% Sales increase from previous yr

Okay, this is my first full year of sales so of course I had a substantially bigger increase. So I was happy about that plus I was making real improvements to my products, display, marketing, etc. Then the Great Recession hits at the end of the year. Remember the big financial houses that started to collapse?

 

2008 - 18% Sales increase from previous yr

Recession is growing and worry that our banking system will collapse is real. At this time its more of a current news report for me. I don't feel the effects of it... yet. I also start a new job as a bookkeeper and I am earning good money.

 

2009 - 15% Sales increase from previous yr

The Great Recession is growing worse exponentially. Layoffs begin, many, many layoffs. Unemployment is growing and more people are signing up for unemployment benefits and food stamps. I still don't feel the effects of it sales wise but there is a lot of fear in the air about the ever worsening economy.

 

2010 - 31% Sales increase from previous yr

Amazingly, this is my best sales yr. I catapulted my sales during the Spring by going door to door wholesaling my candles anywhere I could all over the valley. I am seeing myself growing ever closer to doing this fulltime and supporting myself. Then I lose my job.

 

2011 - 17% Decrease in sales from previous yr

Millions are laid off or have lost their jobs. Millions of jobs are forever gone. This is the first year I feel the effects in my sales. Unemployment is so bad even the government can't keep track. I find part time work with a Federal back to work program. It pays barely above minimum wage but its the only work I can find and I am very grateful.

 

2012 - 28% Decrease in sales from previous yr

Sales continue to drop badly. People don't have money because so many are either out of work or supporting those out of work. More layoffs continue. Unemployment is soaring and growing worse. At this point I had to stop taking credit cards because I could no longer afford the fees. I also stop making candles year round and now only make candles for the fall and holiday season only. Cutting back services and product along with bad economy is playing havoc on my sales.

 

2013 - 60% Decrease in sales from previous yr

Its the worst year sales wise. Not only did I cut services and product but I don't make enough to pay for all the regular shows I do so I did precious few shows this year. Unemployment is still huge. But I finally get a permanent job. Although I am like the millions that find part time emploment for half the wages I used to earn. I am grateful for any job.

 

2014 - 104% Increase in sales from previous yr

Even though the year is not finished I have increased my sales. I work at farmer's markets and craft shows every weekend just like I used to do. I also see sales increasing so the combo of more show attendance and the economy slowly recovering is finally making a chink in the low sales. Unfortunately I lost my part time job so I am again out of work. Luckily I started Social Security at the end of this year so at least I have a steady income. It will make a difference for next year and I am again beginning to get optomistic.

Edited December 17, 2014 by Candybee

[Guest OldGlory]

Candybee, gosh that is a startling account of the country isn't it? I thank God for my wholesale client(s) because they have been a very steady source of income for me for 10 years, with maybe a 10% variance year to year. Now that one bigger client has added another product, 2015 could be strong. I find myself hoping that the new product brings in additional customers instead of cutting the pie of my existing sales.

Thanks for sharing your experience with us.

[Scented]

I remember those times and we took a hit that first full blown part of the recession. Instead of folding like so many people did, we hung in there and started introducing small ticket items ... bath bombs, lip balms and sample soaps and that helped us get back some of the income we lost. We were trying quite a few things to draw attention to us on the show circuit, even introducing our own savings plans etc. 

We've noticed that sales have steadily increased. We're still not at the record levels across the board that we were at in 2007 and early 2008, but we're getting back there. This year we did have a couple of record shows and that was a relief because of poor spring seasons for us the last two years ... poor because weather cut shows way short and that reduced income obviously. 

I don't know that I would want to be a person trying to come back now though. It just means starting over basically, but the market is pretty open for it in these parts perhaps. 

We've actually seen about triple the amount of soapers though and very, very, very few candle people. 

[Candybee]

You know the funny part about all this is during the time I have been out of work I was supporting myself through my craft sales. Its not the way I pictured my American dream coming true. But in a sense that is exactly what I was doing. As bad as the last couple years have been for me I learned an enormous amount by being placed in a situation where I had to sink or swim. One thing I really like is being my own boss.

 

Scented-- its funny you noticed the increase in soapers and the decrease in candle makers too. Its very noticeable around here. During the last couple of years I closed my candle biz and reopened as a soap company. Now I am bringing back candles but on a much smaller scale. Focusing on the soap not only improved my product and gave me an edge over other soapers but kept me in business during the (hopefully) worst years following the recession.

[Guest OldGlory]

The number of local soapers has grown here too, but there are still candlemakers on every street in this county. I think that maybe the reason candles have fallen off in a lot of areas is the cost of shipping the supplies. Soapmakers can buy a lot of ingredients locally and thus avoid the costs of shipping so much.

We're just lucky to have a major supplier in our area.

Edited December 17, 2014 by OldGlory

[Scented]

When we went into making this a biz, we scouted the shows and towns to see what we'd be facing and to decide just exactly what way to go. Pillar makers just weren't out there, but oh were the jar people and votive makers. At the time, gel was present too. Right before the recession there were tons of candlemakers though -- mostly soy, some beeswax and a lot more jars. It was about that time I had been learning soap so as to offer one more avenue to draw people. There weren't a lot of soapers out there. A couple who did goat milk and that was it. 

Then the market started to really appear saturated come 2007 and we were dealing with the Mia B people only to have the luxury of the soy people to follow and customers would come in looking, sniff, start picking up as if to buy and when they found out these weren't soy, they'd drop them on the ground as if they'd just been poisoned. There were vendors who would heckle us at the tent, letting it be known that we were poisonous etc., challenging us to almost outright shouting matches etc. Then came lovely early 2008 and the arrival of more soapers, just not a lot. Along with them came the bubble gum, monkey farts, coconut cream pie, banana split and anything under the son that could misconstrued as essential oils.

By the end of 2008, sales were starting to drop off significantly, but not so much for us as it was others in our craft. By spring 2009, most of them were gone, very few soy makers were still around ... maybe a decrease from 12 at a given time to three or four. By 2009, there were a few stragglers in all the markets at that time, including us, but we were about the only ones who had been around a few years. Come 2010 it was almost just us and a few nasty, nasty vendors in the field springing palm on everyone and passing on more myths, but they quickly died out because of the word that the lack of palm was killing gorillas. By the end of that year though, very, very, very few people were buying much of anything. If it wasn't needed, it wasn't bought. So way more lookers at the show than buyers. 

About 2011 and 2012 is when the soapers and the peddlers of other beauty products came on the scene. 

I don't really know of very many candlemakers any more, but the soap end is still flooded. Our bath bombs and lip balms still move well for us and we'll eventually start adding to our offerings and as long as gas prices keep going down ... I imagine biz will be pretty good and I hope it will stay that way, but there's still news of another crash in the not so distant future as I guess there will always be. I guess where things have stagnated around here though is that we haven't had a rash of new jobs available. Companies are still closing, still bankrupting and people are still just trying to recover from what they have lost in this recession as  well as finagle finances to try to afford the so called affordable healthcare. 

[kandlekrazy]

The number of local soapers has grown here too, but there are still candlemakers on every street in this county. I think that maybe the reason candles have fallen off in a lot of areas is the cost of shipping the supplies. Soapmakers can buy a lot of ingredients locally and thus avoid the costs of shipping so much.

We're just lucky to have a major supplier in our area.

I think you have a very valid point here...shipping is killer on wax and jars, plus soy wax has tripled or more since 2007. I make far fewer candles and way more melts these days.  I do still carry a very modest line of candles and I can pick up my wax and jars at GW. 

 

Candybee, thanks for sharing your experience.  Kudos to all that stuck it out and tried whatever we could to make it work!  My dad always said to do what you love and it really isn't work anyway.

[moonshine]

Wow Candybee....what a recollection, thanks for sharing that

We are in construction for the most part and that's when we diversified at the crash and added other services- we barely hung in there - it's still hard coming out of all that debt even though the last 2 years have been good

And for me it was at that time 2008 I was looking for a way to make extra money and came across candles- I was spending so much on Yankee and thought I can do this - simple easy money....well we all know how that goes - I sell now but I don't profit if you count all the stuff I purchased and tested since then and still would not be able to support myself on it

I am so happy your sales are back on the rise!

Edited December 18, 2014 by moonshine

[Candybee]

Moonshine- I was happy to share my experience here. I knew others were going through their own miseries and I felt lucky that I got myself through it and that I was doing better than some but worse than others. It always amazes me how resilient we can be when we must. Anyway when I was going through my sales records and my notes on sales % I thought it would be interesting to share my experience.

 

Scented- Much of what you wrote about your experience resonated with me and probably many others that were selling crafts during those years. I remember the onslaught of 'reps' for various companies like Scentsy being everywhere at one point. I also went through the 'lookers but not spenders' part. I can't be angry at people for that. I understand many wanted to buy and probably used to in the 'good ole days' but could only look now because they could no longer afford to buy. I also remember the paraffin war years and ended up switching from paraffin to soy. I made soy candles for longer than I made paraffin because no one would buy paraffin anymore. There was a time when every other booth was a candle maker but now most are gone. I only see the same candlemakers who I have come to know over the years who make excellent candles and tarts. Now, jewelry makers are everywhere and many more soapers have popped up. But I have an advantage over other soapers because of my experience (at least for now.)

 

I was reading an article about the unemployment and how even though it was statistically improving it was getting worse for anyone 50 and over. Since I fall into that group I can attest to how difficult it was to find any work and still is. I am still looking but getting acknowledged for a sent resume is almost non-existent let alone getting an interview. During the years I was unemployed I have sent literally hundreds of resumes. In one year alone I only got one acknowlegement and only 2 interviews and that was a good year! Thats just nuts!

Edited December 18, 2014 by Candybee

[Scented]

Oh yes jewelry ... rows and rows and rows of them at shows and that caused some shows to fold because people complained it was all jewelry and not worth the price of admission. Personally though it's the organizer's fault. Why let in 20 jewelers ya know and then put them all in the same general area. But I can remember when there were candle booths almost every three spots from each other. 

There were a lot of one-shotters who wouldn't be around the next year. 

Mia Bella disappeared in about the two years it saturated the marketplace. At first we lost business to them, because the sellers would undercut our prices, but the next year I believe she packed up early and left and then became a no show. 

Before Mia Bella there was Party Lite and somewhere in there Home Interiors. Some had Gold Canyon I believe and now I guess there used to be upwards of four Scentsy people per show ...now that's down to one or two, but they haven't died out. 

[Guest OldGlory]

Candybee, I'm in the over 50 group too (will be 59 in 2015) and know the job market for over 50's is nonexistent. I think it's odd how some cultures revere their 'seniors' and other cultures would rather ignore them. I was in the same boat a while back, during the depth of the recession, sending out hundreds of resumes and getting no responses let alone offers of employment. But my candle sales have sustained me through the years and for that I am grateful. Just when I get a little anxious about a car repair or some big expense looming, another candle order rolls in and I know I'll be ok. I'm not living in the lap of luxury by any means, but I have no debt and I value that.

We are survivors.

[Candybee]

Candybee, I'm in the over 50 group too (will be 59 in 2015) and know the job market for over 50's is nonexistent. I think it's odd how some cultures revere their 'seniors' and other cultures would rather ignore them. I was in the same boat a while back, during the depth of the recession, sending out hundreds of resumes and getting no responses let alone offers of employment. But my candle sales have sustained me through the years and for that I am grateful. Just when I get a little anxious about a car repair or some big expense looming, another candle order rolls in and I know I'll be ok. I'm not living in the lap of luxury by any means, but I have no debt and I value that.

We are survivors.

 

Hugs to you! I never, ever had a rough time finding employers until this recession came along. I bet you were the same. I still can't get another job and the time in between jobs is killer. I worry about my skills stayng sharp and those employers who won't hire people with lapses in employment history or over 50. On top of that the Federal programs that help support workers and senior workers get back to work and get skills training or on the job training took huge federal budget cuts during those years and never fully recovered. Galling isn't it that we all know we need to get people back to work and the feds cut the very programs dedicated to doing just that!

[bugtussle]

Your story is about the same here in central Texas.  After 12 years, we were about ready to give up.  Candles are almost dead, but cp soap is keeping us going.  We did get a big candle Fundraiser in Nov.  We are VERY skeptical but we'll see what happens in 2015.  I will always make candles/pods for my family.  We love them!

[HorseScentS]

In was in sales, first cars and then business-to-business outside sales/marketing, so I wondered if there's a way to honestly pitch candles as money-saving devices like so:

http://www.keensaver.com/energy-savings/top-10-best-ways-to-save-money-by-using-candles/

[Candybee]

I like some of the ideas but not all. You have to be extremely careful about suggesting ideas to customers like using candles to save on electricity. Some people just don't get that candles have to always be watched. These are the same people that would leave a room or house with candles still lit then blame any fire accident on the candlemaker.

Edited December 21, 2014 by Candybee

[upallnightstudio]

I'm so glad you posted those figures, OP. Thanks! I joined because of this topic.

I have been trying to tweak my products to make them appeal to buyers with less money to spend. It does seem that they are opting for handcrafts that are health oriented, even I buy tea tree oil soaps.

[Candybee]

I'm so glad you posted those figures, OP. Thanks! I joined because of this topic.

I have been trying to tweak my products to make them appeal to buyers with less money to spend. It does seem that they are opting for handcrafts that are health oriented, even I buy tea tree oil soaps.

 

I think that focusing on my soap, using all natural ingredients and reformulating my soap recipes with a special purpose has really helped me sales wise. I get a lot of repeat customers for my specialty soaps. I too have noticed my customers are more nature and health oriented and ask more questions about ingredients than when I first started. Not so much for my candles but very much about products they use on their skin.

[David Fields]

We have found over the years that you have to be light on your feet and not have a "if we pour it, they will come" mentality. Every year is different as to customers' needs/wants, and we have to change also. We have never had a year in the eighteen we have been in business that was below the previous years, or even close. But, we are blessed and live in Texas (another blessing). We also pick up ideas that are trending up or down at Dallas Market twice a year. That lets us know the direction we should be going. Never tried soaps. Candles still sell very good for us. Especially to our wholesale customers. My wife and I, BTW, are 66 and 68 respectively and have been doing this full-time since 2001. Also, we prefer older workers. I just hired a 70 year old who is great. Just thought that I would throw in another view and am very sorry so many are having troubles.

[David Fields]

Oh, and another thought. We also look carefully at you youngsters under 60. Afraid some of you might be flighty.

[HorseScentS]

Good points, Candybee. I'm not sure candlelight is cheaper than electricity, but I'd think that as long as you include the appropriate warnings with any suggestion it should be okay.

Edited December 22, 2014 by HorsescentS

[HorseScentS]

Another good selling point is to mention that when electric lighting became available women complained bitterly that is was not flattering like candlelight and showed every imperfection on their faces. If dh only sees you in candlelight but sees his coworkers under hideous flourescent lights... lol...

Edited December 22, 2014 by HorsescentS

[Guest OldGlory]

Oh, and another thought. We also look carefully at you youngsters under 60. Afraid some of you might be flighty.

snickering... 58 and a flake?

I suppose anything is possible!

[moonshine]

Oh, and another thought. We also look carefully at you youngsters under 60. Afraid some of you might be flighty.

What exactly do you mean by this....a little flighty

[David Fields]

Uh.... Whoops. My wife has always said I have a mouth problem. By flighty I mean you(corporate you) act like the under 40 crowd. Clueless. Oh darn, there went my mouth again. lol

Seriously, I have found that the over 50 crowd are much more dependable and no longer even own the "It's all about ME" t-shirt. When we hire, we do not hire anyone under 30 and try not to hire the 30-40 group. No work ethic.

[HorseScentS]

Awesome, Dave!