Pricing for Wholesale HELP!!!

[Carla257]

I have just gotten an order to put my candles in a store. The thing is we are in the same town so our selling prices should be the same. How do sell them for the same price and still make money. Like an example...I sell my 16oz jars for $20, I can make 1 for $8...i know it seems like alot but I live in the boonies!!! So what do I charge her for the jar?? I think about $13 but then she would sell it for $26 cause she would want to double it.

my 10oz jars I can make for $5 I usually sell them for $15.

What should my pricing be? Should I totally change all my prices?

I really need help I have to get back to her. I really think $26 is too much to ask for a 16oz jar

How much of a profit should I make and should she make? So we can sell them to match.

[cindym]

Are you buying in bulk? I could never wholesale and 16 oz apoth for 13.00. Doesn't seem like a win win to me.

[doris]

Basically, your wholesale price should be at least 2x what your cost is, and retail should be roughly 2x your wholesale. If a jar costs you $8, that would make the retail price around $32. You have to find a way to get your costs down, buying in bulk, finding different suppliers, whatever. Even in the boonies there has to be a way. Good luck.

[littlebrownbug]

Where do you live.....Alaska or Hawaii? To me that's out in the boonies and would cost alot more to make more than likely.My candles cost me about $4 to make(16oz. apothecary jars). That would include shipping and labor as well. As soon as I make my first million I will be hopefully able to lower my costs some:)

Mike

[sockmonkey]

How did you get an order for candles when you don't know how much you're charging for wholesale?

You should be more concerned about how you can lower your manufacturing costs than worrying about how much your customer will have to retail her candles for. At $13 per jar wholesale, you're charging more than Yankee (and they're 22 oz jars).

If she's willing to pay you $13 per jar, more power to you. And if she can sell them for $26, I don't see a problem.

[HeavenScentU]

If it costs you $8.00 to make 1-16 oz. candle. Than you would double it to $16.00 to be your wholesale price and that is what you would charge your store owner per candle. She will than double it to $32.00 for retail. Is this going into a high end retail store? That sounds a little on the high side.. I always compare my candle to what is out on the market and adjust my price but it should be comparable to what other 16 oz. candles are going for. You really need to take a look at your supplies and see where you can cut costs to keep your price point down....

[Janelle]

I agree, that seems like an awful lot for 1 jar. I think maybe you should double check your calculations on that again. Where exactly do you live and where are you ordering from?

[Carla257]

I have rechecked my costs...my jars are about 2.30 with the shipping each I get them from http://www.canwax.com/page/page/1687057.htm I buy the honey pot 15oz, I live in fort mcmurray Alberta and they are in Ontario which is pretty far away. so my shipping on that is about $40 or more for a big load of stuff. I could probably save money by buying my scent in larger quantities. But I buy my scents from there as well and from Peaks. There is nothing closer to me to buy candle making stuff. so the pricy items are my jars and my scent. My wax I have to get there too. With the shipping each pound of wax is appx. $1.60

wax 1.60

jar 2.30

scent 1.90per lb I may be able to cut buying in LB size

wick .10

chip .10

label .04

equals $6.04

so 6.00 for a jar retail is 12.00 that is still outrageous to me! And retail is $24. Maybe I need to look at different jars. I didnt want to go with mason jars, which would probably be cheaper. Buying in LB sizes of scent would probably save me .50 each 15oz jar.

I will go through all my pricing again and see what I can come up with. If anyone has any ideas of sutting costs PLEASE let me know. Or if there is a closer place for my stuff.

[Candybee]

Not all handmade candles can be wholesaled. If your wholesale price is too high because of production costs that item isn't a good candidate to be wholesaled.

You have to rethink your candle costs and find a way to cut them deep. I'd start with the jars. Also, try to buy larger amounts of wax to get a better deal-- most suppliers will give a price break at 5 cases or more. How much fragrance oil do you use? A good oil will mean you can cut costs by using less. Buy labels and wicks in bulk.

Once you start thinking in terms of wholesale you will find more ways to cut costs.

[HeavenScentU]

I think I would look into making melts, votives or pillars and do away with the jars. That would save you lots of money.

[Carla257]

My jars right now are my best sellers. I do make votives and tarts and tealights too. I am in the process right now in testing pillars.

I wouldn't think of discontinuing my jars they are my best sellers.

I do live in the oil capital of Alberta, and the peole spend money like crazy here, so the prices I have my jars at right now people do not mind buying them. I haven't heard of any complaints of the prices. The next town is 4 hours away. I have been figuring out cutting costs today so hopefully this can get the prices down.

[cybersix]

This is the reason why I don't make container candles. I'd like to, but containers would cost me too much, and my candles are already pricey.. you could think about it, doing pillars instead of containers. Probably you would save some $$ in FOs too, since usually a pillar wax doesn't hold as much FO as a container wax.

Hope you'll find the way to work around this, I'm in the same situation since I live in Italy and I buy almost everything in US. Good luck!

[doris]

I don't have a clue if this will help you, but richardspackaging.com has a ton of jars and offices all over Canada. I don't know about prices, you have to phone and get a quote.

[Abbiepql]

I hear your pain - but I will tell you what my hubby reminds me of almost daily - the point of a business is to make a profit! What Candybee says is right on target - you will have to find a good and PROFITABLE combination in order to not only fill the needs of your wholesale customers but your business needs as well. Quite a few of my wholesale customers sell my candles for more than Yankme, so I don't always use that as a measure, but comparisons are a good start. What I do when my wholesale/private labeling customers want things outside of my price points - special containers, special fragrances, extras, they pay for them up front. I make money on the wax and labor. Works for me, but normally it's only a couple of orders before they realize it's not worth the extra money and stick with the standards I offer. You are really the one that can make the decisions on cutting costs, as you are the only one that knows what your $ issues are. When I started, I could not really afford to buy in bulk - I did not have a butt load of money sitting around for a pallet of jars! Now, I can't imagine buying them any other way!