Fall Pricing Tune Up Time

[TallTayl]

Hey my candleistas! The holiday season is here. It’s a great time to double check your pricing models to make sure you’re on top of the many increases to supplies that have steadily and stealthy crept upon us. 
 

Raw Materials:
If you have purchased your materials already, it’s still a perfect time to look at replenishment costs. Everything I use daily has increased in price several times throughout just the last 90 days.  I have to periodically adjust my pricing to absorb some of that since “you need money to make money” as they say.  We need to build in enough cushion to afford to purchase more if we plan to stay in business past this season. 
 

Shipping materials:

one of the biggest hits I noted lately has been shipping boxes. Even when bought locally in bulk the individual box prices are notably higher than just a month ago.  

void fill has risen also.  While my brand relies on renewable and recyclable materials, paper prices are heavy and cost a few cents more per package. Peanuts and bubble wrap are higher also.

 

look into lighter, yet sturdy packing boxes.  I’ve found some folding boxes that are a fraction of the weight of traditional corrugated at very similar price per box.  This saves in freight costs to get boxes to me, as well as lightening the package total weight to customers. Sometimes a partial ounce shaves off $1 or more in postage.  Last year that tiny per package savings added up to about $1,000 in my pocket. 

 

Freight:

If you offer free shipping, or free shipping with a min purchase $, it’s really important to recalculate to make sure your profit margins are still healthy. USPS never relieved us of the “temporary” holiday rates of last holiday season.

 

do check third party shippers like Pirate Ship, GoShippo, endicia, etc. for the best rates.  The services are often free to use and can really trim the excess costs for small businesses.
FedEx has increased by alarming % to not be competitive even at commercial rates. UPS has been fairly close to USPS rates recently. Being able to compare all rates side by side on one screen at the time of shipping is a profit saver!

TIME:

The most limiting resource, and most precious to me, is my time. I can’t buy more of it.
This time of year is perfect to take a hard look at the products offered to streamline holiday loads. Deactivate items that take proportionally too long to produce compared to quicker turn around items. Focus on quick turn, healthy profit items to maximize your time investment. Turn on fiddly items after the holiday rush. 
 

Back to boxes for a second in this category. Switching to folding boxes from traditional flat pack corrugated shaves about a minute per box, on average, for my holiday products. This minute per transaction adds up to more than an hour a day that I get back to spend with my family (or to SLEEP!). The boxes I chose also elevated my brand appearance.

 

what tips do you have to help us weather the holiday rush?

[franu61]

When shipping check prices for "box in a bag" envelope or padded envelope.  Usually save money.  

[NightLight]

When fractionated coconut oil goes from 18.00 to 40.00. Changing that ingredient. I do feel there is price gouging going on.

Soapers choice on some base oils.

[NightLight]

I feel sorry for soap makers. Base oils went insane

[TallTayl]

11 minutes ago, NightLight said:

When fractionated coconut oil goes from 18.00 to 40.00. Changing that ingredient. I do feel there is price gouging going on.

Soapers choice on some base oils.

100% agree.  I’m almost glad I don’t sell much soap these days.  Is too expensive to make for a price my people are comfy paying. 
waxes are bananas too. My former case of soy waxes are nearly triple. 

[NightLight]

I didn’t even make family holiday soap because pricing is bonkers. I would hate to be a food manufacturer as cheaper oils like sunflower are astronomical because of the Ukraine. Crazy.