Nature's Garden Price Hikes

[Jeana]

The last time I ordered from NG was just 4/22. I went to place the same order and discovered they increase their pomegranate by $3.00 per lb. Some other ones went up by $1.30  per lb. I get raising a price here and there but $3.00 lb? It's a fruity scent too, not like sandalwood or patchouli that warrants such a dramatic increase. That translates to  $.16 more per candle. That's pretty substantial when doing wholesale  Anyone else noticing this?

[Lighten Up]

1 hour ago, Jeana said:

The last time I ordered from NG was just 4/22. I went to place the same order and discovered they increase their pomegranate by $3.00 per lb. Some other ones went up by $1.30  per lb. I get raising a price here and there but $3.00 lb? It's a fruity scent too, not like sandalwood or patchouli that warrants such a dramatic increase. That translates to  $.16 more per candle. That's pretty substantial when doing wholesale  Anyone else noticing this?

 

I've noticed it, too. In fact, I had been switching some of my fragrances to NG from another supplier that is pricing itself out of my range. I may have to rethink that.

[Jeana]

13 minutes ago, Lighten Up said:

 

I've noticed it, too. In fact, I had been switching some of my fragrances to NG from another supplier that is pricing itself out of my range. I may have to rethink that.

They did some dramatic price increases a couple years ago too. So you may want to rethink it. I just don't know why they are increasing this dramatically. It's not like I can keep pushing these increases onto my wholesale customers. I can absorb some of that with retail or for personal use but not wholesale, they'll only pay so much.

[Sebleo]

There is a thread on this topic in the business section. We will probably be seeing all sorts of price increases this year. 

[Jeana]

18 minutes ago, Sebleo said:

There is a thread on this topic in the business section. We will probably be seeing all sorts of price increases this year. 

What's the thread title?

 

[TallTayl]

A lot still has to do with aromachemicals shortages. Many of my dupes increased several $ a lb right at the lab.

 

The rest is tariff related. Most FO raw material is manufactured overseas and has been hit with an overnight 25% increase. Many glass, steel, aluminum, etc. materials have also been targeted in the tariff. If you’re into fabrics, many of those were hit too. It is industry wide for us, and not expected to fall any time soon.  Even if the tariff were dropped, the increases will be here long after since the current stock was subject to the new 25% tax. 

[Sebleo]

1 hour ago, Jeana said:

What's the thread title?

 

 Sorry— Another Price Increase, WSP

[moonshine]

6 hours ago, Jeana said:

They did some dramatic price increases a couple years ago too. So you may want to rethink it. I just don't know why they are increasing this dramatically. It's not like I can keep pushing these increases onto my wholesale customers. I can absorb some of that with retail or for personal use but not wholesale, they'll only pay so much.

I see it as You don’t have much choice and neither does your wholesale accounts - when suppliers raise prices we have to raise prices - that’s the cycle of business, there is no point in doing any of this imo if we keep trying to absorb price increase in fear of passing it down to our customers- wholesale or retail 

If everyone would do this right along beside each other the consumers are likely to not bat an eye because they don’t have a Choice if they want our products

Sure you can buy cheaper fragrance but likely it will “be” cheaper and your customers may notice that difference enough to hurt business as well

I understand our craft is a want vs. a need and it’s a tougher sell in this market and very very competitive mainly due to the fact many people just price to just make a sale or to support a hobby but in owning multiple service businesses I have a different outlook on this whole thing: 

When our fuel supplier raises prices more than a few cents per gallon because the barrel increase we cannot afford to absorb that cost, we have to either 1) raise our prices across the board or 2) implement a fuel surcharge if it’s projected to be temporary - we go through around 40k a month in fuel this time of year running all our trucks and equipment an increase of a dollar or more per gallon would kill us - we have to pass it down

we recently increased our price on a septic tank clean, the fees went up where we have to dispose of the waste, the slight increase in fuel, the increase in our insurance premium every year, the increase in our workman’s comp and of course the increase in the technicians wage, the breakdowns and repairs and....and....and.... we were not making enough money to run that circus - the competition did not increase their prices and sure we lost some business from the people that only want the cheapest they can get  and the competition thought they were “one up on us” until they figured out they were working twice as hard and increasing the wear and tear on their trucks ten fold resulting in more repair bills and break downs....and we were actually making more money doing less work - and  those said competition are now at the same price point we are - and again I know it’s different in respect that people “have” to clean their septic so they have to pay the increase vs. people “wanting” a nice smelling candle or bar of soap but the principal is the same in theory, once everyone realizes they need to charge more for their products due to price Increases passed down to us, consumers will likely pay 

With our excavating and mulch business, We don’t pay on pieces of equipment monthly that cost 100-300k each to absorb any of costs Trickled down to us....if gravel goes up so does our price, if pipe or colorant or anything at all for that matter goes up, so does our price and the people that use credit cards to pay on a septic repairs for several thousands dollars, we charge them the credit card fees - you want your points your paying for them and people are happy to, they can always write a check if not 

Sure it’s competitive out there and there will always be the one man show operating without the proper licenses or the company that thinks they being smart pricing way cheaper but in the end when all is said and done we have to work smarter not harder, less jobs for more or even the same amount of money is a savings in so many ways in my eyes 🤑

Our fragrance suppliers are obviously getting nailed with price increases and this whole tariff thing is having a big impact but we really can’t blame them for having to keep their business rolling, they can’t absorb the costs and still profit either

 🤷‍♀️💁‍♀️🤗 that’s my 2 cents worth anyway, it  certainly sucks to have to pay more - absolutely sucks but you may be surprised at your wholesalers reaction, surely they are seeing it already with many items they carry 

[CandleRush]

Bingo!

moonshine is correct! Keep using high quality ingredients and increase your prices. The fear is you’ll loose customers but candles are still an affordable luxury. If they ask explain the reasons why. Let them know why your candles are higher quality then mass produced, etc. Using words like premier, luxury wax and fragrances, paying attention to detail, small batches, quality control, made in the USA and so on.

Work on your sales pitch! We can always make improvements!🌸

[Jeana]

I totally understand about raising my prices, I’ve been doing this a long time and I never undersell my work. Before all of this I just raised the price recently on all my private label wholesale candles $1 each to cover my new wax. And seeing how gas around me can go up to $4 per gallon, I’ve now started charging delivery fees. I’ve never charged delivery fees before. I’m just saying I can’t keep raising prices or I will lose these accounts. Customers will only pay so much for a candle. These suppliers can absorb some changes occasionally, or at least split it with us. One of the other scents I get from NG went up $1.30 per lb, I can handle that, but where I start getting concerned is an extra $3 per lb. That really adds up when I’m buying 10+ lbs at a time. And it’s just plain ridiculous for a fruity synthetic scent. 

Edited June 7, 2019 by Jeana