bella soy Posted June 8, 2006 Share Posted June 8, 2006 I know we had this discussion before, however Im really ticked off. It cost me 2.75 to create one 8 oz. square mason jar candle. I plan to resell them for $8.25. This is 300% over cost. I spoke with my mother who sells home interior candles at work. I asked her if she wouldnt mind taking some of mine in to sell. She asked me how much, I told her. She said "well, I dont think your gonna get that much for them, people in there are cheap"She then prceeded to ask me how much it cost to make one and I told her. She said that maybe I could get 5.00 out of them. Should I take the hit and lower the price just to get some customers? Or stick to my guns and say well they are 8.25 take it or leave it? Quote Link to comment Share on other sites More sharing options...
LynnS Posted June 8, 2006 Share Posted June 8, 2006 300% is quite alot.Where I live all I can get is $5.00 for a 8 JJ.If they see a nicer bigger jar and it is $6.00 they either walk Away or go for just the $5.00 JJ.My best customers are a former Home Interior lady and also one who used to buy from Yan***.She will still gets some from Yan*** if they are on sale for 40-50% off but says mine are better.LynnS Quote Link to comment Share on other sites More sharing options...
BrandNewToCandles Posted June 8, 2006 Share Posted June 8, 2006 Maybe go somewhere between the two prices? Say $6.50, see how it goes? It's still about 2 - 2 1/2X your cost, right? I don't sell and I don't know your area, so I'm sorry I can't offer more advice... Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted June 8, 2006 Share Posted June 8, 2006 It doesn't seem worth the trouble to make them and sell for only $5 unless you are selling a lot (like wholesale). That is not even cost x 2. What about lowering it to $7.90? It's only a few cents less than $8.25 but would *feel* cheaper to the customer. Quote Link to comment Share on other sites More sharing options...
guppygirl Posted June 8, 2006 Share Posted June 8, 2006 300% is quite alot.Where I live all I can get is $5.00 for a 8 JJ.If they see a nicer bigger jar and it is $6.00 they either walk Away or go for just the $5.00 JJ.My best customers are a former Home Interior lady and also one who used to buy from Yan***.She will still gets some from Yan*** if they are on sale for 40-50% off but says mine are better.LynnSI usually use the standard formula of wholesale $ = 2x cost, retail = 2x wholesale, so at a cost of $2.75, that retail markup isn't horrible. The only thing is that $2.75 seems like a lot of $ to produce an 8oz jelly jar. If you could get your cost down by buying bulk, even if it means reducing the # of fragrances you offer, you could get away with charging less and still making a nice profit.JMHO! Quote Link to comment Share on other sites More sharing options...
bella soy Posted June 8, 2006 Author Share Posted June 8, 2006 Well I hope to ahve my cost down in the near future. I have not bought anything in bulk yet. The wax i get is very expesive to ship and i figure that into my price per pound ratio when I break it down. But soon ill be able to buy cases and get shipping discounts. But anyways thats how much it cost me to make that one candle. Ill agree to go to $7.90 thats a weird price though, what about $7.95? Quote Link to comment Share on other sites More sharing options...
KristinesShower Posted June 8, 2006 Share Posted June 8, 2006 Is there any way you can lower the cost of your candle?I had a similiar problem when I first started, but found out when I buy the soy, jars, fragrance and wicks in bigger bulk, it cut the cost dramatically.If I were you, I wouldn't lower the price at all. I get $8.99 per mason jar in my little podunk town and if they don't like the price, they can mosey... Quote Link to comment Share on other sites More sharing options...
KristinesShower Posted June 8, 2006 Share Posted June 8, 2006 (I think we were posting at the same time ooops!) Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted June 8, 2006 Share Posted June 8, 2006 It seems crazy, but $7.95 sounds much cheaper than $8.25. I wouldn't lower my price to anything less than $7.50 unless you are able to get your materials for less. You seriously do need to consider what your market will bear. Although it would be nice to get 3 times what you have invested, it will not always be possible. Some people can do it because they might be buying their stuff for a lot less than you, so that enables them to make more off of their stuff than you will be able to at the prices you are currently paying.I think that's a common mistake some people make--expecting to apply a rule of thumb formula and get the same results as everyone else. If everyone else in your town is selling similar candles to your for less money, then I don't think you will have an easy time selling yours. But if you offer something that is unique, and you find the right customer base, you shouldn't have a problem. Quote Link to comment Share on other sites More sharing options...
Crowded House Posted June 8, 2006 Share Posted June 8, 2006 I wouldn't sell a candle at a cheap price just because the market is too cheap to buy it for what it's worth.If you want to appeal to a cheap market segment you should make a candle that costs less to produce (like votives). That way your name is out there, you've appealed to that market segment, and your candle prices can maintain their integrity.Otherwise keep looking for the market segment that wants to pay $8 for a square mason. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted June 8, 2006 Share Posted June 8, 2006 I am not sure which of $7.90, $7.95, or $7.99 would feel the cheapest to the customer. Personally I don't like to deal with pennies/change, but have read that even though you're really charging $8, it does feel cheaper to the customer when it's a few cents less. Quote Link to comment Share on other sites More sharing options...
magsglass Posted June 8, 2006 Share Posted June 8, 2006 I agree with CrowdedHouse, it's all about defining your customer and using your ads/logo/packaging to appeal to them. The big question is...who's your market? Quote Link to comment Share on other sites More sharing options...
Candle Man Posted June 8, 2006 Share Posted June 8, 2006 Also, if you can afford it, buy your wax in 200LB's instead of the 50-60LB. That way you can get the UPS hundred weight shipping which is much cheeper.Try and find suppliers close to you that carry what you use. That way you can buy more from one supplier and maybe get discounts and/or save on shipping. Quote Link to comment Share on other sites More sharing options...
AngelaVA Posted June 8, 2006 Share Posted June 8, 2006 Studies show that people like to pay for odd numbers. So, I would charge $7.95 at the lowest. I recently marked my square masons up to $8.95 with no balking from my customers. I would never sell that jar for $5. Maybe a jelly jar, but not the square mason. Stick to your guns and buy in bulk when possible, but don't sell yourself short. You are making a quality product and people should expect to pay for that. All it takes is getting a few customers who spread the word too. And there will always be cheapskates who won't buy no matter what your pricing is. Plus, once you set your price, it is incredibly difficult to raise it later. Start higher and then give lots of discounts when you first start to offer. Always offer a "2 for __" price or buy two get one free or something like that. And you can give a new customer discount, refer a friend discount, it's Thursday discount, free gift with purchase (I do this and people love it) etc . . . Your pricing won't turn people off so much when they think they are getting something for free or at least gettin a great deal. Quote Link to comment Share on other sites More sharing options...
AprylDS Posted June 8, 2006 Share Posted June 8, 2006 How about a graduated price scale?1 for $7.50 - almost 275% markup2 for $13.75 (save $1.25 on 2nd candle) - 250% markup3 for $18.50 (save $1.25 on 2nd candle and $2.75 on 3rd candle) - almost 225% markupThis might market better and encourage your mom's "cheap" co-workers to spend a little more. Quote Link to comment Share on other sites More sharing options...
hewells Posted June 8, 2006 Share Posted June 8, 2006 I would never sell yourself short...$5.00 is just not feasible..if it costs you 2.75 to make a candle Quote Link to comment Share on other sites More sharing options...
bella soy Posted June 8, 2006 Author Share Posted June 8, 2006 Crowded house, I think your right. Im not going to accept any less than 7.95 for my candles. I put a lot of hard work and money into creating this business. Not only are you paying for a great looking/smelling candle but its alos homemade so your also getting my blood sweat and tears too. If people understood what went into buiding a business and or candles then I dont think it would be a problem selling them for $8.50Im not a cheap person but where i live alot of people are. I wouldnt have any problems paying 8.50 for a candle like mine. Quote Link to comment Share on other sites More sharing options...
Janette Posted June 8, 2006 Share Posted June 8, 2006 Studies show that people like to pay for odd numbers. So, I would charge $7.95 at the lowest. I recently marked my square masons up to $8.95 with no balking from my customers. I would never sell that jar for $5. Maybe a jelly jar, but not the square mason. Stick to your guns and buy in bulk when possible, but don't sell yourself short. You are making a quality product and people should expect to pay for that. All it takes is getting a few customers who spread the word too. And there will always be cheapskates who won't buy no matter what your pricing is. Plus, once you set your price, it is incredibly difficult to raise it later. Start higher and then give lots of discounts when you first start to offer. Always offer a "2 for __" price or buy two get one free or something like that. And you can give a new customer discount, refer a friend discount, it's Thursday discount, free gift with purchase (I do this and people love it) etc . . . Your pricing won't turn people off so much when they think they are getting something for free or at least gettin a great deal. Ditto..... I think many artisans sell their work for too little. If you can't make an honest wage out of it, what is the point in doing the work? Janette Quote Link to comment Share on other sites More sharing options...
guppygirl Posted June 9, 2006 Share Posted June 9, 2006 I agree on a formula not working for every market... even my formula doesn't work across my entire line (ex. it costs me $.70 to produce a 10pk of unscented tea lights due to packaging expense/time etc, but I'm lucky if I get double that! No way could I wholesale them!) And there are some products that I can mark up well beyond 400% due to specialty ingredients and label appeal. As a few have said, there are some people who would be best off buying their candles at walmart and others who would think $8 for your candle is a bargain. It's all in who you market to. You may want to consider joining a networking group if you have anything like that in your area, or joining an online group like mompacks who exchange fillers/business cards etc. to expand your market beyond your hometown. Just my $.03 worth Quote Link to comment Share on other sites More sharing options...
Candle Makin Momma Posted June 9, 2006 Share Posted June 9, 2006 $8.25 is a lot for an 8 oz jelly. I charge $7 online ( and sell no problem) and $6 at parties ( people here are cheap) Quote Link to comment Share on other sites More sharing options...
Britt Posted June 10, 2006 Share Posted June 10, 2006 I charge $8 for my 8oz Mason Jars. It costs me $2.00 to make one so I multiply it by four. Of course that doesn't work for every one because of product cost, packaging, etc. Quote Link to comment Share on other sites More sharing options...
Nanasnecessities Posted June 10, 2006 Share Posted June 10, 2006 I sell the square mason for 6 bucks, 2 for 10 and 5 for $20.It is $1.50 for me to make them. I don't carry them in a whole lot of scents so I can make them in bulk. Many fundraisers for me. I wouldn't do them at all but some people want a candle instead of a tart.I sell them online for $6, my shopping cart doesn't do the 2-10 deal, so I don't offer it there.My competition sells the jj for the same price, but hers are soy. I don't know how much it costs her though, she buys in bulk also. Since we are in the same building we agreed to sell them at the same price.HI, circle e, our candle and village candle are also in the same building. I only make one size, with one kind of wax and use a couple of wicks (if I have too, of course). If it is a bugger to wick, I just don't make it in candles.Perhaps you can have your mom sell tarts for you at work, that way you can get them hooked on your wonderful scents and then they will buy your more expensive than hi candles cause they will already know they are better than HI. You would be able to sell them much cheapers as you don't need as much.I sell mine $1.00 each 12 for 10 Quote Link to comment Share on other sites More sharing options...
jennifer Posted June 10, 2006 Share Posted June 10, 2006 I haven't started selling yet, but I was figuring up my own costs for a 8 ounce square mason--it was about 2.50. The whole time though, I kept thinking that if my cost now with shipping is 2.50 then in the future it will be lower so even if I take a 'cut' now by not marking up 3x or 4x, in the future the cost and retail price may very well even out to 3x or 4x. Try to keep that in mind, your income will be slower to start with, but it should even out with time.HTH, Jenn Quote Link to comment Share on other sites More sharing options...
sassy-girl Posted June 11, 2006 Share Posted June 11, 2006 I sell the square mason for 6 bucks, 2 for 10 and 5 for $20.It is $1.50 for me to make them. I don't carry them in a whole lot of scents so I can make them in bulk. Many fundraisers for me. I wouldn't do them at all but some people want a candle instead of a tart.I sell them online for $6, my shopping cart doesn't do the 2-10 deal, so I don't offer it there.My competition sells the jj for the same price, but hers are soy. I don't know how much it costs her though, she buys in bulk also. Since we are in the same building we agreed to sell them at the same price.HI, circle e, our candle and village candle are also in the same building. I only make one size, with one kind of wax and use a couple of wicks (if I have too, of course). If it is a bugger to wick, I just don't make it in candles.Perhaps you can have your mom sell tarts for you at work, that way you can get them hooked on your wonderful scents and then they will buy your more expensive than hi candles cause they will already know they are better than HI. You would be able to sell them much cheapers as you don't need as much.I sell mine $1.00 each 12 for 10I'm with Nana's I sell my 8oz square 6/$25, but i but in bulk and sell in vast volume. There are 3 sides to sales, sell low, with vast turnover. Sell high, less turnoever, more money for the effort, or find the middle range.. only you can decide Quote Link to comment Share on other sites More sharing options...
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