momtohaley2004 Posted September 8, 2007 Share Posted September 8, 2007 Ok, I know it's suggested that you retail for 3 times your cost and wholesale for twice your cost. Well when I figured up my 8 ounce jelly jar costs (everything included including time, ink, wax, utilities, etc) it came up to 3.04 per 8 ounce candle. NORMALLY that would be just fine as I sell my candles now for 8.00 but am thinking of going to around 8.95. Anyway, this guy that wants to buy wholesale from me is saying that he does his things different than most. Whatever he pays for something he doubles it and that is what he charges the customer retail. Ok so this would mean that my candles SHOULD normally retail at 9.12 and wholesale at 6.08. HOWEVER, if this guy doubles everything then it means that he'd be retailing my candles for 12.16. BUT he says he won't sell for more than what I sell on the website for. This means, I won't be able to wholesale to him for more than 4.50. I wouldn't be making hardly anything off the sale then. At least not enough to make another candle with. So, what should I do? Should I go up on my prices to make up for the difference. This guy has a wonderful business and I will be his only candle supplier. He goes all over the US to shows, etc with his products/furniture and will take my stuff too. This is a great opportunity to get my business name out there. I want to make him happy but want to make some money. Any suggestions? I am thinking I may have to raise prices. Quote Link to comment Share on other sites More sharing options...
tootie04 Posted September 8, 2007 Share Posted September 8, 2007 WOW....that cost is high!! My cost is 1.51 each 8oz JJ so I wholesale for 3.00 each and sell for 6.00 each or 4/20.00 how are you factoring in your time? I take the amount of candles I can pour in 1 hr then divide that by however much i want to pay myself.tootie Quote Link to comment Share on other sites More sharing options...
eugenia Posted September 8, 2007 Share Posted September 8, 2007 I can't see going over $8.95 on a JJ, which means you'd have to wholesale them for $4.50. Unless you can lower your costs significantly, it hardly seems worthwhile.e Quote Link to comment Share on other sites More sharing options...
BLSoaps Posted September 8, 2007 Share Posted September 8, 2007 See if this helps you price things out a little better. I've always found the double, triple your costs thing to not be quite adequate when you're getting ready to do wholesale. As for the store owner doubling what you sell it for (you sell it to him for $5.00, and he doubles it and sells it for $10), that's standard. http://www.soapersworkshop.com/store/index.php?page=Product%20Pricing%20FormulaBut the formula will help you show the areas in which you may want to look into cutting your costs (labor, ingredients cost, etc). Once you know what exactly is making your product price sky high, you're often able to tweak things to work on bringing those prices down a little. But NEVER undercut yourself. Make sure you're paid and paid well. You're making a quality unique product, and deserve to be paid well for it. Quote Link to comment Share on other sites More sharing options...
doris Posted September 9, 2007 Share Posted September 9, 2007 I agree that the 2x wholesale, 3x retail is unreasonable, most retailers double what they pay to get their retail price.I haven't a clue what size your operation in, but unless you are buying in bulk, it is very difficult to price things properly. Expecting your customers to pay much more for one of your products simply because you are paying full retail price on your supplies is unrealistic. If you are just starting to pick up business, maybe you should be basing your pricing on what you would pay if you bought in bulk, rather than on what you ARE paying. It might hurt for a bit, but it might be worth it if it kept your prices in a reasonable range. Quote Link to comment Share on other sites More sharing options...
Holly Posted September 9, 2007 Share Posted September 9, 2007 Ok, I know it's suggested that you retail for 3 times your cost and wholesale for twice your cost. Well when I figured up my 8 ounce jelly jar costs (everything included including time, ink, wax, utilities, etc) it came up to 3.04 per 8 ounce candle. NORMALLY that would be just fine as I sell my candles now for 8.00 but am thinking of going to around 8.95. Anyway, this guy that wants to buy wholesale from me is saying that he does his things different than most. Whatever he pays for something he doubles it and that is what he charges the customer retail. Ok so this would mean that my candles SHOULD normally retail at 9.12 and wholesale at 6.08. HOWEVER, if this guy doubles everything then it means that he'd be retailing my candles for 12.16. BUT he says he won't sell for more than what I sell on the website for. This means, I won't be able to wholesale to him for more than 4.50. I wouldn't be making hardly anything off the sale then. At least not enough to make another candle with. So, what should I do? Should I go up on my prices to make up for the difference. This guy has a wonderful business and I will be his only candle supplier. He goes all over the US to shows, etc with his products/furniture and will take my stuff too. This is a great opportunity to get my business name out there. I want to make him happy but want to make some money. Any suggestions? I am thinking I may have to raise prices.Hi,I am glad you posted this. I am in the exact same boat and it has really been frustrating. This is one reason why I mainly do consignment but would prefer not too because you really have to keep an I on things since it is your money sitting there. I have one account where she buys my candles outright but she does not expect me to give her the greatest deal on wholesale price -- I know her. She ups her retail but she is not making double. I will not always be this fortunate and know that I really cannot offer good wholesales prices. My candles cost me quite abit to make since I have to get the type of jars (with wood lids) that fit the right look for my signature line from NY. There are not many jars to choose from nearby. I may add another jar line down the road that I can get from CA that may end up less expensive. Are you able to get your jars and wax nearby -- your state or a state very close? If so, this would really help keep the cost down. I know it is hard and I have not been successful at it, but it helps to have most oils coming from one place or just a few and not too many different places. Also, if they can be from as close as you can get them to where you live. Even if I developed a cheaper jar candle (masons, JJ's, etc.) for wholesale, I don't know if it would be worth it to me to make so little on each candle since I still have to do the same amount of work pouring the candles as it takes to pour my more expensive candles. I wish you luck in your business. If you can't get the pricing where you need it to be for wholesale, you can try the consignment route. ~Holly Quote Link to comment Share on other sites More sharing options...
Sally Posted September 9, 2007 Share Posted September 9, 2007 I've just spent the afternoon trying to work out my pricing too, & I am now going to do it all over again. My math is rubbish & my totals seem far too high....around £8 / $16 for a 3x3" soy/pw pillar, that's before I add on labour costs.Ingredients are more expensive over here & we have less suppliers. I do need to buy my wax in larger quantities so it's back to the invoices & the calculator......& another look at suppliers.Sally. Quote Link to comment Share on other sites More sharing options...
racolvin Posted September 10, 2007 Share Posted September 10, 2007 I find that several dependencies exist when it comes to pricing: materials cost, labor, overhead, etc. But when it comes to what the customer actually pays, there is one very important item - shipping.For wholesale accounts, I give them 30% off from my MSRP if they have a minimum of a $200 order. Now at first glance they would complain that my web price is under cutting them (assuming they want to double what they paid) until I remind them that if a customer buys from my website, they ALWAYS pay a shipping/delivery charge that is a minimum of $8. Customers who buy from me over the web don't buy just one of something - they make it worth paying the shipping charges.So if a customer wants just one of my 8oz apothecary jars (actually more like 9 ounces of wax) for $10.99, it would end up costing them almost $20 by the time taxes and shipping are accounted for. If its a local customer, there is room for the retailer to up the price to something comfortable to them yet still undercut my web price when shipping is considered.So far this has been more than enough "wiggle room" for a retailer to go up a dollar or two from my web price and allow them the margins they want.HTH,Ronnie Quote Link to comment Share on other sites More sharing options...
SherriLynn Posted September 10, 2007 Share Posted September 10, 2007 Wholesale x2,,, retail x4... that's what most of us charge for our products... x3 is pretty low, when retailing to customers. Remember you have to pay rental or lease spaces for stores to sell product in, or craft show booth fees, or even your website, is added costs. x3 does not give you enough working capitol to pay for these. HTH's... Quote Link to comment Share on other sites More sharing options...
islandgirl Posted September 10, 2007 Share Posted September 10, 2007 For wholesale accounts, I give them 30% off from my MSRP RonnieMy wholesale prices come out to approx 30% too. I also offer private labeling-this way if a company wants to mark up the candles and not compete with my website, then they can. It is also a great way for my wholesale accounts to advertise their business and mine.(I put my company info on the warning labels) Either way is fine for me as long as I get paid!! Quote Link to comment Share on other sites More sharing options...
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