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Quentin

How Can You Sell & Profit This Way?

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Check out this link from Etsy. How can this seller possibly sell at this price and not lose money? It costs me more in materials only, than what she is charging for this candle on Etsy.  https://www.etsy.com/listing/632292274/pillar-candles-scented-or-unscented-any?ref=shop_home_active_10&pro=1&frs=1

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Oh yes. Here is her product description. She's also throwing in a pillar plate for free. 

Description

Pillar Candles have a unique presentation you can dress them up with flowers or keep them simple.4" by 4.5" 12.5" diameter (round) . Weight is 1lb 10oz. Comes with Pillar Base.

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48 minutes ago, aptommo said:

Maybe they are making it up in the shipping??

Well let me tell you about that. I didn't mention that I ordered one of her candles about two weeks ago. I just wanted to see what I got. Apparently, she is unaware of any of the postal discount sites like Pirate Ship. She only offers regular Priority Mail. That was about $13.00 but that was obviously USPS over-the-counter pricing. So, she can't be doing it that way. Maybe she graduated from Harvard Business School or from Wharton. Perhaps they're now teaching a new theory that the way to make money in business is by losing money:huh:  It could be that she is a believer in this time tested business idea:  "We lose money on every transaction but we make up for it in volume" :lol:

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So people really just do not know how to calculate what an item costs.  I have a rather large spreadsheet to know what my costs are.  Some people just guess.

 

 

@Quentin At my last job the owners would always say  "But we will make it up in volume".  I always laughed at that.

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People undersell themselves all the time. If you want to stay in the business you have to learn how to run your business. So either they will or they will fold shortly. See it all the time. Not everyone is cut out to run a small candle biz.

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7 minutes ago, TallTayl said:

Maybe they’re just trying to get a few sales chalked up to build their relatively new shop?

Maybe...but 14 sales from three customers....hmmmm...I dunno...But we all know Etsy is all about survival of the fittest and if I had to make a prediction I might guess that they wont be around too long....all I can say is don't photograph your items on a towel...no matter how plush that towel may be!

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Those 14 sales could be to friends, family or a sock puppet account to get the sales ball rolling.  Could be this is truly a hobby and the profit does not matter. 

 

Regardless, I see pricing issues everywhere, even here. None of my business. Sellers come and go every day.

 

A lot comes down to luck.  the more I focus on my own business the luckier I get. 

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I'd look at how long in business.  I've talked to sellers that state they started out on Etsy with break even prices, some even lower to build a customer base, then gradually raised prices.  If you look at her votive candles they went from 3/$1 to 3/$1.89.  My guess is her prices will slowly go up as she gets customers.  Sneeky way of doing advertising as we all know people search for the cheapest price!

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Every item she has includes free shipping. I can't imagine she will exist very long since she is losing all of the money she spends on shipping plus what she's losing by spending more to create her candles than she is selling them for.  Sounds like e-commerce suicide.

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On 12/24/2018 at 8:58 AM, TallTayl said:

Maybe they’re just trying to get a few sales chalked up to build their relatively new shop?

That could be possible I suppose. That item may have been one of her early attempts that she was willing to let go as "clearance" or "distressed goods" instead of dumping them in the trash.

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13 hours ago, geodon99 said:

Every item she has includes free shipping. I can't imagine she will exist very long since she is losing all of the money she spends on shipping plus what she's losing by spending more to create her candles than she is selling them for.  Sounds like e-commerce suicide.

Actually, I ordered that item from her a few weeks back. She charged me retail over-the-counter Priority Mail. It was around $13.00. I ordered two. One to burn, and one to dissect.:naughty: 

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On 12/24/2018 at 9:48 AM, TallTayl said:

Regardless, I see pricing issues everywhere, even here. None of my business.

I don't care what she does either. It's none of my business, just like you said. But I learn just as much from watching the failures as I do observing the successes.:)

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1 hour ago, Quentin said:

Actually, I ordered that item from her a few weeks back. She charged me retail over-the-counter Priority Mail. It was around $13.00. I ordered two. One to burn, and one to dissect.:naughty:

so Quentin...Do you have the candles yet? ...if so what did you discover?

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On 12/24/2018 at 9:04 AM, Sunday said:

but 14 sales from three customers.

Of those three customers, I was one. So the other two customers were probably a brother or sister and maybe her parents.:lol:

 

1 hour ago, Sunday said:

so Quentin...Do you have the candles yet? ...if so what did you discover?

O yes. They arrived. Dents, scratches, a very uneven & unfinished bottom, no throw (hot or cold) and tunneling. 

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On 12/24/2018 at 6:58 AM, TallTayl said:

ohhh that's unfortunate Quentin...(I was kinda hoping you were pleasantly surprised) ....guess you get what you pay for :rolleyes22:

 

 

 

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Oh yes, I got what I paid for, but I was pleasantly surprised to see that I wasn't pleasantly surprised. If you catch my drift...:)

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If she even knows what a model is. I mentioned in an earlier reply to someone that I think she is using that tried and true Model: "We lose money on every transaction, but we make up for it in volume". 

Edited by Quentin
typo
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This person is probably going to notice increased traffic coming from here and while it may be a good learning experience for her to find this site, some of what is said here comes off mean-spirited. Maybe the direct links and identifying images should be removed? 

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 It is my hope that she WOULD find this site as she would learn so much helpful information. I wish her all the best, as I do for everyone on this board. There is no intention on my part to be mean spirited in any way. It would be great if she were here to tell us if there is a method to her system. I would be more than open to learning from her if that were the case. But nothing whatsoever is intentionally mean-spirited by me.

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