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How do you account for FO in pricing your product?


scrubzz
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Specifically, how do you set your price to account for FO when different FOs can be priced so differently? I can't see setting different prices for different scents but they can run from $15.00 a lb. to $30.00 and up (way up!) - Do you figure your price point at the highest price and just reap the benefit of any lower priced FO? I can't see averaging them all because with my luck the highest priced FO would be by far the biggest seller and that would not work out for long 

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I do an average cost per ounce including shipping. All of my oils range from $15-24 per pound. 

 

Now I just sampled an oil that is $31 per pound and contemplated that very pricing question. I’m still testing it, so I’m not sure if I will carry it or not. 

 

If it’s a few fragrances that are really pricey, I would use the average CPO and take the loss on those because it will even out with your lowest cost oils. 

 

However, if you have a lot that are $30+ I would either price the product at that price point or go a little over your average cpo.  

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Most of the oils I buy are between 17.95 and 20.00 or 22.00....Once in a while I pay more than that amount.

My cost for figuring it the cost of goods I base it on $20.00 a pound.

If I use oil that is more than that I just figure it will all balance out in the end.

Being that I sell wholesale to stores I couldn't set prices all different per whatever oil I use.

And too it works out in the end also because when I figure out costs to make a candle, I figure the costs of for example a 16Oz canning jar doesn't hold 16 ounces of wax but less closer to 13ounces of wax so I would therefore charge in most cost of goods that I used 1ounce of oil and not the amount for a 13ounce candle so I'm padded a little there on each candle so it all works out in the end.

 

Trappeur

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  • 3 weeks later...

Sorry I disappeared from this thread right after posting - life got in the way and I was offline for a while

 

Seems the consensus is to average but like everything else in life it must ultimately be determined by the individual situation

 

Thanks everyone for your input

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