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Turning A Profit, With High Shipping Costs


OverSoyed

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So.... I have been working on the new candle business for months now, and we are finally about to start the launch.... well, after testing that is. But I have a serious question for everyone....

How do you attempt to turn a profit with the high price of shipping? This doesn't fall into just one group, as I'm sure everyone uses supplies of some sort.

We are focusing on candles at the moment, then expanding into B&B.

While working on pricing last night, shopping various suppliers for jars and whatnot, you soon realize that shipping most times is the same or MORE than the actual cost of the jars. I shopped and compared about 3-4 sites, and it seemed to be that way all around.

Short of driving 200 miles in any direction to pick up the supplies at distributor, what are you left to do?

I was telling the hubby today (while at Chinamart:(), "We might as well buy their candles, burn them around the house, then recycle the jars! They just rolled out a new line of mini keepsakes, for $1.00. They are cute as punch. But when you, the hobbiest or business professional, try to pick them up wholesale, you are running $.80-$1.00 alone, not counting shipping. :o

I am going to stop right here before I continue to vent and ramble any further. Please feel free to post away! :angry2:

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The cost of shipping to you must always be added in the cost of your finished product. For instance, I have some FO that I just bought, in this rare case I only bought 2 pounds. It cost me 42.oo with shipping to get those two bottles, so let's say $21 each. so 1.33 and ounce. I figure it that way with everything, but if I am buying to ship I rarely only have two items like that, it's usually a lot more in bulk so my shipping dollar is stretched further. It can be hard to pass along a shipping amount on to the customer if you are only buying a little here and a little there - you will be nickel and dimed to death!

So the first way to turn a profit with high shipping is, well, to lower shipping by buying more. The second is to always be sure to pass your shipping costs on to the customer! I have detailed list of every ingredient and thier costs by the ounce and by the pound so I can figure to the penny.

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I have an excel spreedsheet that my husband made for me that includes the cost of everything that helps to keep me on track. This is very helpful when I want to try something new to see if it would be smart to do financially.

Good Luck,

Kim

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I totally understand that with buying more, shipping tends to go down. But it seems that there are so many variable, its hard to maintain a good price point at all times. I mean, you can still turn a decent profit even if you are shopping small from your suppliers, but it definitely cuts down your profit.

Then of course, you are always up against the big box store, their chinese labor, and cheap goods. But thats a whole new bag of worms.

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If you don't mind me asking where are you looking for jars? It has been my experience that many of the smaller suppliers have an incredible mark up on their glass, whereas a supplier of glassware will have a lower markup? Maybe if we knew what kinda jars you are looking for we would be able to direct you to the lowest prices we have found?

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Then of course, you are always up against the big box store, their chinese labor, and cheap goods. But thats a whole new bag of worms.

I don't think you can say you're competing against these people if you are producing a quality, handmade product. My customers know the value of good quality candles and they're not cheap and you can't find them at WallyWorld. If you're going to try to compete against some of these, you'll set yourself up for failure right from the start. People don't buy the candles made in China for their quality, they purchase them for the low $$, something most of us can't compete with.

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I buy alot from locals but with that gas being almost $3.50 a gallon is not cheap. I also get alot of FO's out of state. Just last week things were so hectic and I needed 5 fo's. I called a local supplier. Decided I would order and they ship it.To my amazement they told me you can get 3 more fo's to fill this box and it will be $5.60. Hey not bad.I didn't have to make the 25 mile trip either. I got 8 -4 ounce bottles and the cost was $5.60. I also have ordered 3 cases of jars and about 6 fo's another time.Of course the shipping was about $15.00. I wont do the jars anymore but sure considering the 8 fo's from now on.

Out of state I also get a good shipping rate but no jars. Just special fo's. I get my orders fast with even out of state suppliers. The jars can be the killler. What about Wal Mart jars(8 ounce JJ)??? They are more expensive for me but when I am desperate and don't want to drive 25 miles I get a box. Those jars would have to be cheaper for you than ordering out of state.

If you are looking for specialty jars it will be something you have to have shipped.I am lucky there because I have a local company that has about 12 different styles of jars but all my orders are for 8 ounce JJ and 16 ounce Country Jar.

LynnS

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So.... I have been working on the new candle business for months now, and we are finally about to start the launch.... well, after testing that is. But I have a serious question for everyone....

How do you attempt to turn a profit with the high price of shipping? This doesn't fall into just one group, as I'm sure everyone uses supplies of some sort.

We are focusing on candles at the moment, then expanding into B&B.

While working on pricing last night, shopping various suppliers for jars and whatnot, you soon realize that shipping most times is the same or MORE than the actual cost of the jars. I shopped and compared about 3-4 sites, and it seemed to be that way all around.

Short of driving 200 miles in any direction to pick up the supplies at distributor, what are you left to do?

I was telling the hubby today (while at Chinamart:(), "We might as well buy their candles, burn them around the house, then recycle the jars! They just rolled out a new line of mini keepsakes, for $1.00. They are cute as punch. But when you, the hobbiest or business professional, try to pick them up wholesale, you are running $.80-$1.00 alone, not counting shipping. :o

I am going to stop right here before I continue to vent and ramble any further. Please feel free to post away! :angry2:

Sorry I dont know where you are in the North Western part of PA but have you looked into http://www.fairwayglass.us/

They have a store in Cleveland Ohio so maybe if they are to far away for a drive their shipping charges might not be that bad. If you havent checked them out before they have every jar you could think of. And if you email them which jars you want to try they will send them free of charge, I requested 4 jars and they sent them to me at no cost. And the only bad part about them that I have noticed is their website doesnt give you the diam of the jars but if you call them they are more than happy to help you out. Well I hope this helps you out some.

Antonia

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Hex Glass Jar Candles

1.5 oz, 3 oz, 6 oz, 9 oz

Victorian Glass Jar Candles

4 oz, 6 oz, 10 oz

Classic Glass Jar Candles

4 oz, 6 oz, 10 oz, 16 oz

Tureen Glass Jar Candles

3 oz, 6 oz, 8 oz, 10 oz

I looked at Candle Science, The Jar Store, and a few others... I just priced like 2 equal cases from each store to get an average cost.

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I looked at them, and might go with them for the "designer" style jars. But as for the classic style, I don't see them having them.

Sorry I dont know where you are in the North Western part of PA but have you looked into http://www.fairwayglass.us/

They have a store in Cleveland Ohio so maybe if they are to far away for a drive their shipping charges might not be that bad. If you havent checked them out before they have every jar you could think of. And if you email them which jars you want to try they will send them free of charge, I requested 4 jars and they sent them to me at no cost. And the only bad part about them that I have noticed is their website doesnt give you the diam of the jars but if you call them they are more than happy to help you out. Well I hope this helps you out some.

Antonia

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I looked at them, and might go with them for the "designer" style jars. But as for the classic style, I don't see them having them.

Sorry not really sure what you mean by classic style, but if you mean the apothecary jarsthey have the colonial jars that look just like them. If this is not what you mean sorry.

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Fairway actually has really decent pricing on shipping. Though I don't know why they charge for handling ?? Maybe it's due to smaller order amount? Either way, I've always gotten really quick responses to my questions by email, so excellent cust. service in my books.

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Classic as in hex, 12-side, tureens, and so on

Sorry not really sure what you mean by classic style, but if you mean the apothecary jarsthey have the colonial jars that look just like them. If this is not what you mean sorry.
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Their prices aren't too bad at all... as long as you order a large qty., for shipping.

If you just get one case of an item... you are looking around the same price for shipping as for the jars themselves. Thats what worries me the most.

Thanks so much for letting me know. I was just on candle science looking at the hex jars, I really like the look of them. And for me the shipping really isnt that bad. I may just have to order some.
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I was going to suggest Fillmore too, I am pretty sure they carry those jars and they are lower than the ones you mentioned I am pretty sure. Fairway does not carry those jars you mentioned, they only carry one twist jar lid that I know of and that is jelly jars. Worth checking out.

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Are you making ALL those jars that you listed in ALL those sizes?? That is expencive big time!!

Why not narrow it down to just a few jars and 2 sizes??

I do 9oz hex jars and 6oz tins (fundraisers only) and 4oz tins for wickless.

I am going to either add 7oz frosted tumblers or DROP the 9oz hex jars.

What I am saying is that is alot of inventory to have on hand and that is a large cost. But then again I dont know anything about your business so I may be way off base....:undecided

tootie

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I think the Candlemaker in Ohio has all those jars. One Stop Shopping. I get my classic jar, sometimes my 8 ounce JJ and the 16 ounce Country jar. They have the hexagon jars too.Check them out. They are local for me.

LynnS

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I use Fillmore Container for my glassware, check them out. Their shipping is fair, they are in PA (Lancaster) and their minimum is only $40.

They have some of what I am looking for... but they don't have the various sizes I am looking for.

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Guest LightofDawn

Not sure how close you are to Pittsburgh, but Early American Candle in Allison Park has a pretty wide selection of jars. I did not check to see if they had all the ones you are looking for and did not compare their prices. But if you can pickup it may save some money. The only issue I had with them was their shipping prices so if you can avoid that, it may be an option.

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THANK YOU! :P

This is exactly what I was looking for! Somewhere somewhat nearby that has everything!

I think the Candlemaker in Ohio has all those jars. One Stop Shopping. I get my classic jar, sometimes my 8 ounce JJ and the 16 ounce Country jar. They have the hexagon jars too.Check them out. They are local for me.

LynnS

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I'm only an hr. away or so from downtown. I checked their site out, and they have a decent variety. I added them to my supplier list. Thanks

Not sure how close you are to Pittsburgh, but Early American Candle in Allison Park has a pretty wide selection of jars. I did not check to see if they had all the ones you are looking for and did not compare their prices. But if you can pickup it may save some money. The only issue I had with them was their shipping prices so if you can avoid that, it may be an option.
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