Raising prices

[momtohaley2004]

After doing an evaluation of my prices and my product costs, I've found that in the last year, my wax has gone up 18 dollars a case but my prices have just about stayed the same. Granted, I've had clearance sales and such here and there but they have mostly stayed the same. Unfortunately, I'm having to notify my wholesale providers that my pricing is going to have to increase to cover the price of wax and supplies. I've never had to go up on my pricing and I feel bad about it because of the percentage that I'm having to go up. My 8 ounce candles for example will go from wholesaling at 4 dollars up to 5.25 just so I can get my cost x 2 from these. When it comes to my tea lights it's almost not even worth it for me to make them and if my sales do not pick up on those I will be discontinuing those. Thankfully I have my retail prices on most items priced about in the range where they need to be to still have me making a substantial profit from my sales. Maybe not always a x3 profit but fairly close.....what the market here can stand anyway.

I am lucky though I suppose because I have 2 cases of votive wax and a case and a half of my container wax still so I won't have to purchase wax just yet. But, I've already announced it on my website that prices go up July 1. This way I have the money when it comes time to purchase more supplies.

I hate having to do this but I suppose it's been on the horizon for a while now. All my wholesale accounts loved my reasonable pricing but now I"m afraid I may lose a few accounts. We shall see I suppose. I'm going to send a notice to all of them today or in the next few days concerning the price increase so they will be prepared. Also maybe that will stimulate them to make a purchase and bring me in some income now............wait and see.

Everyone is blaming the rising prices on the price of GAS....I'm sorry but I have to call BS on that one. Hubby works in refineries and there isn't a shortage of gas as we often hear on the news. OPEC is controlling the market and what it boils down to is someone doesn't want to let go of what they have because it benefits their pocket book more to hold onto it and charge higher prices. Particularly Diesel.....Diesel is a by product......fairly inexpensive to produce so why is it higher than gasoline and thus causing our shipping prices to go up as well as our grocery bill and everything else..............what is the US coming to?......never mind LOL I don't think I want to answer that.

Sorry for my last little bit of rant on this....................I just had to fill up a diesel truck and it was rediculous!!!!!1

[Misty]

Yep, I'm gonna have to raise mine too. The price of gas does effect costs. There may be a large supply of it, but it doesn't do us any good if it is priced so high that it increases the cost of shipping, which in turn effects the cost of the product. It effects every business in this way, causing a trickle down problem.

[Vicky_CO]

I raised my price June first it was a very sad I hated doing it but I did not feel I had any other choice.

[Scented]

You know, and my partner hates it when I say this, but you shouldn't support other people's habits and not get some benefits other than a chance to buy more wax. Hope that makes sense. We're going to have to look at making increases too. We're still stocked with many cases of wax, but ... when the costs eat into any kind of profits you hope to have, there's really no choice but to make an increase. I would think people will understand and while you may lose some business, they may come back once they get over the shock.

Who you're wholesaling to are business people right? They already understand price increases and I bet they aren't giving up some of their profit to sell the product.

Now if my partner would understand it.

[LynnS]

Since my main supplier of wax won't get more till new shipment I am going to see if 2 other local suppliers have a good wax. Get a couple 50 lb boxes if they are still around before the BIG increase. Not to say already some increases have taken place.

I agree there is no shortage of gas.After all the stores have had to hike up in prices and prices WON'T be coming down we will find we have gas and plenty of it. This country will be in ruins. Back in the 80's we had a recession but to me it is nothing like this one.There is a recession no matter what they say.Getting worse everyday not every month.

LynnS

[soycrazy]

Diesel is expensive to produce now because they are cleaning it up. Diesel used to be cheap to produce because it was simply a by-product of fuel production. Diesel at that time also filled all the highways with black smoke. They are cleaning it up several ways including removing sulphur so we can breathe.

There's a shortage of truck drivers, because of these dang gas prices just another reason why you are seeing empty shelves and prices going up. Some truckers are losing their homes,because they simply can't afford to drive truck anymore w/gas prices. We have plenty of reserves and I don't understand why we are just sitting on them.

[Fire and Ice]

If your wax only went up $ 18.00, count yourself lucky. Mine has gone up more than $35.00 a case and it Soy wax. I am now paying almost double what I did 6 months ago.

Pres. Busch also had many of the farmers convert to growing corn for Ethenal and so the crop is much smaller in soy so the prices are hiked. My suppier also said their shipping on the pallets of wax have almost tripled. I have a full time job and still can't afford to by wax at almost $80.00 a case!

This will be my last year for candles but I will keep my clamshells as they sell great! Venturing into soap which I hope to sell next year when I switch over liablity insurance. I'm paid up for the year strictly on candles.

Fire