Retail Location

[LynnS]

I have been asked at shows and by customers "where can we get your candles".I have no shop but do have a website but never any local orders.I have wanted a shop on our property but with the economy kinda risky now.

I am able to put them in a local retail location and only pay 20% to them.Great to me but I do have to raise the price of my candles from what I have on my website (which is dirt cheap living in Ohio). I really see no reason people will care since they can get them without ordering on-line and also don't have to pick them up or make other arrangenments since I don;t have a shop.

Do you think raising my price a few more cents or a $1.00 will hurt?The people have to understand I will be paying a commission to sell my candles there. I see no problem but don't want people to see my site. Don't want people to say I paid more than what is on her website?

I have to get them out someway.Things are real slow now.

Everyone we know is out of work but so far our family is OK

Any Insight

LynnS

[MissMary]

I think it depends on the size of your candle and the quality of the burn.

I wouldn't pay $1 more (nor ask if I was still selling) for a 4oz. tin that lasts 3 hours but I would be willing to for a 16 oz. apothecary that lasts 100 hours.

I would leave your site the same cost. There is a certain convenience price (IMO) to shopping at leisure at the store you would be putting them in.

[SliverOfWax]

There is no possible way anybody can know if raising your price $1 will hurt or help. No possible way.

You're going to have to just do it and see what happens. Or not do it. It's your call, your business, your customers.

[LynnS]

OMG Miss Mary you are fast to answer.

My candles are quality and the 4 ounce tins last almost 20 hours or more.I just started doing tins.Testing the 8 ounce now for a order but the 4 ounce did fine.

I sell the 8 ounce JJ and have for 5 years.About 40-50 hours of burn time and yes I think the convenience of walking in and buying is good.It is there and in front of you. All the gift shops or other businesses buy Yank** for their shops.They will not deal with us little people. It is all about the name. They will live and learn. Of course they sell them for 1/2 off.How can they make anything.

Another idea I have is to put out a suggestion box for a certain scent or for any other ideas. Like if they get a blueberry muffin candle and want more just put that in the box.I will check the box a couple times a week.Also might see something on my site and I could put our a few of those items.

LynnS

[bugtussle]

It is normal for a retail shop to charge more than your online store. Just tell your customers the store has to make a little to carry them. Carole

[prairieannie]

OMG Miss Mary you are fast to answer.

My candles are quality and the 4 ounce tins last almost 20 hours or more.I just started doing tins.Testing the 8 ounce now for a order but the 4 ounce did fine.

I sell the 8 ounce JJ and have for 5 years.About 40-50 hours of burn time and yes I think the convenience of walking in and buying is good.It is there and in front of you. All the gift shops or other businesses buy Yank** for their shops.They will not deal with us little people. It is all about the name. They will live and learn. Of course they sell them for 1/2 off.How can they make anything.

Another idea I have is to put out a suggestion box for a certain scent or for any other ideas. Like if they get a blueberry muffin candle and want more just put that in the box.I will check the box a couple times a week.Also might see something on my site and I could put our a few of those items.

LynnS

I wouldn't put out a suggestion box by your candle display, or anywhere else for that matter. That would be very tacky IMO, and I can't imagine that a store owner would want you to do it either.. could be wrong though.

I am completely against consignment, but that's just me. There are too many risks involved for your products. What if someone knocks one off the shelf, and it breaks. Who will be responsible for that? What if one or more of your candles get shop lifted? Then what? Who's responsible? What if someone buys the candle, and then doesn't like it? Complains for whatever reason.. who will deal with that?

I understand though, that desperate times call for desperate measures. Just think it through, and don't get yourself into something that you may regret and find that you've lost money when it's all said and done.

It's also my opinion that most consignment contracts are ridiculous, and not worth the paper they are typed on.. but again, my opinion.

Is there any way that the retail owner would consider buying those candles from you .. maybe just one case to start to see how they sell?

[clonefan80]

On the flip side.......my prices online are higher so that I am not competing with a retailer. But I would prefer they buy from a retailer.

[LynnS]

Sliover of Wax

Yes you are right.The chance IO take.They will already be at the location so why bother going home, check my website and calling a order when the candles are in front of them.

If the customers have any sense they should know it costs to sell my things at the store. People wanted to know where to get them. Now they will have a place.I will advertise this on my website.

Prairieannie

OK I will ditch the suggestion box. Probaby someone would say lower your prices when they are very reasonable anyway. I just thought mainly scent requests.

I also tried the flea market craft thing.That was robbery.I paid $200.00 month and never again.I did get robbed.The place was so big no way could the workers tell if someone stole anything and really why should they care they got their $200.00 a month.

Those places are a rip off.

The cost of this is 20% of what is sold and why I want up the candles.Maybe not all 20% but close

I will be working at the place 1 day a month. Plus the 20%. All who have crafts at this place will be doing that. We all must trust one another and I trust this place and the others. Just need to keep good records/inventory.

Taking a chance. This place is only 15 minutes from my house.The rip off place was 45 minutes from me. So lost money with gas cost too.

LynnS

[Sherl]

On the other side of the coin.. as a shop owner I do not expect to be undercut. I expect any of my consigners to sell to the public at the same price I have to sell in the shop for. Else why do it for 20%.. even 40%. The paper work to pay consigners most times isn't worth the effort.

As far as raising prices.. with the price of wax more than doubling last year I had to. Went up $2 a candle. I was nervous.. but did not lose any business over it. Gas was out of control, food was going up so most figured it was par for the course.

[sassy-girl]

Raising the price for the candles to cover the 20% is not unreasonable. actually it's an advantage to any customer who can buy in store and not have to pay for the shipping that it would cost them if they ordered from the website. My ebay and website items cost more that items i have at my market store. I make al of my internet items to order vs items i have instock that may be displayed for weeks

[sockmonkey]

If the customers have any sense they should know it costs to sell my things at the store. People wanted to know where to get them. Now they will have a place.I will advertise this on my website.

LynnS

As a retailer, if I saw that you sold candles cheaper on your website I would dump your products immediately. If customers see that they are cheaper on your website they will assume the retailer is ripping them off. This is not an issue of whether customers have any sense or not, it's an issue of how you choose to market your products to affect their buying habits.

I think you're looking at this the wrong way. You should absolutely hope that people will ultimately go to your website to buy your candles--unless you want to give up 20% commission and have to haul candles to someone else's store all of the time.

The way I see things you have a couple of options:

#1--Eat the 20% commission without rasing your fees and consider it part of the cost of doing business--use in-store sales as a form of advertising to drive more business to your website. Then when you have enough volume in online sales you can remove the candles from the store and strictly do internet sales.

#2--Raise the cost of your candles on your website to keep them in line with what you charge in the store. If you haven't already put the candles in the store, go ahead and raise the price online so that they are equal.

Don't you already have enough profit margin in your online price so that if you wanted to have a sale you could discount by 20% anyway? If you can discount online and make enough profit, you can pay 20% commission and make profit. If you didn't factor that in when you determned your online pricing, then this is a good eye opener for you and a good time to re-evaluate your pricing structure overall.

It's probable that more people will see your candles in the store than people will randomly find your candles online, so take advantage of that. Have your web address on your label. Have a hang tag around your jar, or a business card or other promotional material taped inside the lid. You might have 6 scents in the store, but list other scents that are available online in the promotional material you tape inside the lid. Give people a reason to visit your website so that eventually they will automatically go to your site instead of the store for your candles.

[fmsojka]

I have sold product by consignment for several years. My least favorite way to sell, (for the reasons listed previously), but it is a way to cheaply get product out there. One thing I would suggest is to stay on top of it. I have tended to let it slip in the past, and that has caused some problems. Same with wholesale, if we don't stay on top of it, business slips.

20% is not bad, for a commission. But then there will be a day of your time. But you can check out your display, switch out product not selling. Rearrange, keep the display attractive. What kind of traffic does the place have? That is another consideration. It sounds like it is close to home, so that is another good thing.

I say go for it, what do you have to lose? I am always trying new things to promote my product, to keep it in front of people. Some things work, some don't. So I back out and go a different direction. Mostly I have several different things going at once. People's memories are very short.

And yes, times are really hard. I have run a sale this last week, that in November did very well, I have had sporatic response. I am going to run it this week as well. With big retail fighting with big bucks for people's dollars, I have to compete.

I figure my price at 4 times my cost. Then I have some room to offer sales, or pay consignment, or do wholesale. The approach I take is how to lower my cost so that the 4 times stay reasonable. That is really tricky, with all kinds of rising costs.

Good luck.

[LynnS]

Some clarification below.

I tried the flea market/craft show thing and paid $200.00 a month. Did I ever get taken.People stole from me and I am sure from others. I didn't go fast enough. I don't see me doing that again.

I also did the craft marketplace thing. It was much cheaper but very little traffic. Paid $70.00 plus 20% in sales. I did have to sign a 6 month contract or probably would have left sooner.

This is my only chance.Only 20% of my sales. I am not underselling the store. Every business with gift shops etc in our area buy only Yan***.Never buy from us small candlemakers.So no competition there. They pay out the big bucks and then mark them down all the time. They don't know what good candles are. They want the Name.

A little more about the place.It is a non profit art center.I joined for $25.00 and I am fine with that.It is a nice place and they do alot of exhibits. Artists from our area and other areas. Probably not alot of traffic except for big events. When the people come to look at artwork.Most probably not looking for crafts but my candles will be there anyway.

So no store front and I know not alot of business but maybe what I do get will be repeats.Then if some asks at shows "Where can we buy your candles", I can tell them where.

I have alot less to loose than the other places I have tried. It was a waste and with the economy I cannot do those things anymore. I also cut back on shows last year.

LynnS

[Circle]

I wouldn't put out a suggestion box by your candle display, or anywhere else for that matter. That would be very tacky IMO, and I can't imagine that a store owner would want you to do it either.. could be wrong though.

I am completely against consignment, but that's just me. There are too many risks involved for your products. What if someone knocks one off the shelf, and it breaks. Who will be responsible for that? What if one or more of your candles get shop lifted? Then what? Who's responsible? What if someone buys the candle, and then doesn't like it? Complains for whatever reason.. who will deal with that?

I understand though, that desperate times call for desperate measures. Just think it through, and don't get yourself into something that you may regret and find that you've lost money when it's all said and done.

It's also my opinion that most consignment contracts are ridiculous, and not worth the paper they are typed on.. but again, my opinion.

Is there any way that the retail owner would consider buying those candles from you .. maybe just one case to start to see how they sell?

I agree. Consignment has a lot of problems. The shop owner and staff have no inclination to sell your items as they have not paid a cent, secondly they won't care about where they put them and thus they could be tucked away or in the sun etc. You can also get into a situation where you lose track of what the shops have and you lose income. In other words you lose, full stop. Have them buy a small selection and put them all together in one place and see how they go, otherwise give them a miss and move on to those that will buy and appreciate your products