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Prices too low to compete


Lorelei

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My melts didn't sell this year like other years.    I've resigned to the fact that BBBeyond and every store in the nation is seling the cheap versions, however, today I see that there is another reason after being told this by two of my customers.   They are ordering from a store that also sells on ebay and their own site.   They offer clams for 2.91 in all the favorite scents and boast "Astonishing" throw.     The store is offering free shipping too.   How on earth?   I was looking at only one listing on ebay and it looks like that one was ordered 12 times in 24 hours.    If they have dozens of listings that would be a lot of sales but how can you truly break even offering free shipping.  

 

I'm just posting to be posting I guess  LOL   humor me.

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Why even try to compete with flea market and bargain basement prices? Choose a different spin and different market.

Secret Garden started on Etsy and switched over to facebook. She has fans world wide and still commands premium prices for her offerings. There's even a swap group for her stuff.

Those ebay sellers could be relying on volume as the profit generator. They could also be treating their melting wax as loss leaders. Who knows what their business plan is? Who cares? Forge your own path.

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Guest OldGlory

There are always cheaper wax products where I live. You can buy 3/$10 square masons pretty much anywhere if you look for them, or bargain for them. And then there's always Walmart selling 16 oz jars for $4 when they put them on sale (end of season). You have to find people who appreciate what you sell.

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Yes, You certainly do have to find people who appreciate what you sell.   I can't compete with those who sell their wax melts a lot cheaper than mine. I don't even try.  I know that mine are way better than what most stores offer.  Once people try mine, they usually come back for more!  Plus, they're impressed that I make them myself and appreciate that they can support handmade.

 

Running a business can be so frustrating sometimes.  It's so hard to see others selling the same things for super cheap when we put in so much hard work and testing to make great products.   Keep on keeping on!

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Yup....keep on keeping on....if you make an awesome product, once people try your company and get to know your product, they WILL pay your prices. I also believe that selling your product dirt cheap creates the thought that your product and company is cheap.....I so am NOT going there. If they want cheap, they can go elsewhere....they get what they pay for when they buy my product.  The scented items market has ALWAYS been strong. People love candles and scent in their lives any way they can get it. Every single one of US is sitting on a potential gold mine....just figuring out the plan that makes it all happen ......that's what a person's gotta do.  :) 

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I really was posting this less about the competition side and more about HOW ON EARTH do they offer free shipping on these!?   I'd really love to know!   I still sell plenty, and this isn't my primary business so I'm not as concerned, more curious!

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I have been debating with myself about posting to this one. So, here goes and not sure if I should. Our clamshells cost us .50 to make. We sell them for $2 wholesale and $2.95 retail, and sell around 25-30K of them a year. The cost is based on someone else pouring them. And our melts are great. We have many, many Scentsy dealers and distributors who buy from us. Puma is right. Don't cheapen your product. We work hard at keeping our costs low and making a product that is as good as or better than everyone else's. Our cost per unit has come down as our volume sold went up due to being able to get better prices for volume buying. We buy 20K clamshells at a time. We don't offer free shipping. Don't have to....yet. So, the person selling at $2.91 with free shipping could be making good money. Just saying. Everyone starts small and grows as their time, money, interest, ingenuity, and motivation allows. Don't despair; just keep on, keeping on.

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I have been debating with myself about posting to this one. So, here goes and not sure if I should. Our clamshells cost us .50 to make. We sell them for $2 wholesale and $2.95 retail, and sell around 25-30K of them a year. The cost is based on someone else pouring them. And our melts are great. We have many, many Scentsy dealers and distributors who buy from us. Puma is right. Don't cheapen your product. We work hard at keeping our costs low and making a product that is as good as or better than everyone else's. Our cost per unit has come down as our volume sold went up due to being able to get better prices for volume buying. We buy 20K clamshells at a time. We don't offer free shipping. Don't have to....yet. So, the person selling at $2.91 with free shipping could be making good money. Just saying. Everyone starts small and grows as their time, money, interest, ingenuity, and motivation allows. Don't despair; just keep on, keeping on.

 

Thanks so much for posting David. You know, we appreciate it when one of the "big guys" share what works for them. It is still hard to think that those folks make much or any money at all offering free shipping, but your explanation gives us a peek as to how it can and does work. We all can learn much from each other. :)

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Yup....keep on keeping on....if you make an awesome product, once people try your company and get to know your product, they WILL pay your prices. I also believe that selling your product dirt cheap creates the thought that your product and company is cheap.....I so am NOT going there. If they want cheap, they can go elsewhere....they get what they pay for when they buy my product.  The scented items market has ALWAYS been strong. People love candles and scent in their lives any way they can get it. Every single one of US is sitting on a potential gold mine....just figuring out the plan that makes it all happen ......that's what a person's gotta do.  :)

Well Said Puma !

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