Day 1 of my first festival was today!

[GermantownCandles]

I did my very first festival today and it went great! I did about $325 in sales, I'm only about $50 away from making up my cost of material, and I'm hoping for at least $150 (if not more) for tomorrow!!

I took room sprays (5 scents x 7 bottles) tarts (5 scents x 20 each) and candles in 7 different scents and 3 different sizes, a 10oz 16oz and 26oz. Since I had never done a fest. before I wasn't sure how much to take. My 10oz candles for $5 flew off the shelves, I sold about half of my 16oz at $10 and only sold a couple of 26oz candles, I also only sold a couple of sprays and tarts. So I got home tonight and I made up some jelly jars and more 10 and 16oz in the most popular scents to take back tomorrow. It has been a great day! Pumpkin scents were definitely the biggest hit today, let's hope for the same tomorrow!

Edited September 26, 2010 by GermantownCandles

[Blest2BAmerican]

Congrats on a great day!

You might want to refigure your prices though. You are selling them way to low.

[Candybee]

Congrats on your first show!

I agree you are underselling your candles. I quit making candles over 16 oz as they just don't sell enough to make up the cost of making them. The most popular best sellers are 4 & 8 oz jars-- especially jelly jars. The JJs you can sell at $6-8 dollars a jar and they sell like crazy. 4oz jars can go for $3.50 to $4 a jar.

Edited September 26, 2010 by Candybee

[GermantownCandles]

Going rate seems to be around $4-$5 on jelly jars around here. My 10oz I mark up about 2.5 times. My 16oz is marked up over 3 times cost. I am feeling pretty comfortable with my margins I am making. The reason I got into candle making was I was so tired of paying so much for good candles, if I can offer a good product at a low price and still make good money, I really don't see how my prices are too low?

[LuminousBoutique]

thats very inexpensive.. wow! I mean, do what you want to do obviously its your business, we're just saying you could make more.

I sell my 8oz sq masons for $8.00 or two for $15.00 and they fly at that price- people are willing to pay what the market allows and it gives you bigger profit margins. we all CAN charge less, (basically wholesale) but it wouldnt be worth the time in the long run, you know? You arent walmart- you are an artisan... people should expect to pay a bit more for GOOD candles, and its practically impossible to RAISE prices and not get complaints..but you can always slash them... thats all I think we're saying

But if you are comfortable with your profit margins and you are growing your customer base, thats awesome!

congrats on a great first day and good luck today!!

[Abbiepql]

First of all congratulations!

Secondly - where in the heck did you get some awesome prices on supplies? Seriously - 2.5 times cost for a 10 oz candle and it only costs $5? That means you only have $2 invested in a candle you make? My math sucks - but seriously wax, FO, wick, labels and glass including shipping to you for around $2?

I imagine those candles did fly off the table -

Riddle me this, do you ever plan to expand your biz? Sell wholesale? Cuz...at the rate you are going - and granted my math is bad you have built in very little profit if any to pay someone to help you - severely limiting your production in the "big" picture. How could you wholesale your candles when you are selling and pricing your products at what a retailer would expect to pay wholesale? And what about taxes - does that $5 include your states sales tax?

Sorry, don't mean to be rude, but economics being what it is - I just fail to compute.

[Kitn]

Congratulations on your first days sales. I hope day 2 is wonderful too.

[Faerywren]

Good for you!

Who is your supplier? I'm guessing these are soy candles? Even with a volume discount at most suppliers, paraffin is well over a dollar per pound. Don't sell yourself short. Make sure you are paying yourself for your time. I know in the beginning I didn't figure my time into the cost because I got so much enjoyment out of making things. That got old fast when I wasn't just doing it for myself, but had orders to fill. Then I wanted compensation!

[Jeana]

I got to agree with everyone else. It is wonderful you are selling so many but you would really have to charge more than this to survive in the long run. Don't forget in your "cost" of the candle there is electricity, bags, paper towels, website hosting .....

There is much more costs to a successful business than just wax, jar, wick, and labels.

And like others said you have to leave room in your price if you want to do wholesale, hire someone, or basically take your business to any kind of next level. It isn't greedy to ask what you need to make a living on your business.

You must get a killer price on your glassware to offer your 10oz apothecary jars for $7.00

[EricofAZ]

Hmm, my scalloped 9 oz jars are a $1.10 local, wax is a buck (cuz its a half pound) and the FO is .50. Wick/labels/tags are another .15 at most. Dye is about two or three cents depending on if I use chips (expensive) or liquid drops (negligable cost). So add in paper towels and electricity and I think $3 is about right.

$7 for sale might be a bit shy, but everyone I've spoken to in planning out my prices say that they would not go over $10 to buy a 9 oz wax weight candle.

I suppose with the right marketing, folks would pay more (Yankee Candle), but figure in the cost of marketing and you're back at the same net income, right?

[Candybee]

Hmm, my scalloped 9 oz jars are a $1.10 local, wax is a buck (cuz its a half pound) and the FO is .50. Wick/labels/tags are another .15 at most. Dye is about two or three cents depending on if I use chips (expensive) or liquid drops (negligable cost). So add in paper towels and electricity and I think $3 is about right.

$7 for sale might be a bit shy, but everyone I've spoken to in planning out my prices say that they would not go over $10 to buy a 9 oz wax weight candle.

I suppose with the right marketing, folks would pay more (Yankee Candle), but figure in the cost of marketing and you're back at the same net income, right?

Aren't you buying your scalloped jars at a local $.99 cent store? I believe the posters offering biz advice are referring to buying jars, wax, wicks, etc from a wholesale suppliers. Its great you can buy your jars from a local store but for my wholesale accounts I purchase large quantities from a wholesale jar supplier. Even with buying wholesale selling a 10oz jar candle for $5 and trying to grow a biz based on that is just not gonna happen.

[LuminousBoutique]

not to mention time, effort, storage, travel....

[GermantownCandles]

Day 2 was even better than day 1! I sold just as much in the first 3 hours Sunday as I did all day Saturday. And after all was said and done, I profited $237. That is after the cost of my supplies and after I subtracted my sales tax. I also gained a small wholesale account and 2 fund raisers, not to mention I had over 200 new hits on my website for the weekend and 4 orders from newly registered users! We have done many fund raisers and as for expanding into wholesale I already have 4 accounts, now 5, and all of which are private label accounts so there is no real conflict of interest. None of them were present at the festival so I was able to sell my candles at a lower price, I wouldn't have sold so low had one of my accounts been there. As for economics, many businesses sell product at discounted prices to attract new customers in hopes of creating repeat customers, so I really don't believe there is a valid argument against lower prices, unless I was losing a lot of money. My business has been a pretty successful side venture over the last 2 1/2 years we have been in business, it is not huge but we have averaged around $10,000 in sales for 2 years now. So I feel as if I am doing something right. I am just looking for ways to promote my business, and selling cheaper at local fairs seem to a pretty good place to do it.

[esgaisford]

congrats on your festival sales!

[GermantownCandles]

I really do appreciate all of the feedback this forum provides! Please leave me feedback, whether positive or constructive, it definitely helps me improve my business! Thanks!

[adillenal]

I personally don't care what you sell for but in my experience, selling low is a deadend. Others come and go undercutting my prices but I do not care as I have set my prices and my customers pay it.

I also offer a deal. Two fers and three fers. This allows for a lower price for those willing to buy more than one. I have built in wiggle room for a jump in prices for supplies so my prices stay consistent.

If you are happy with minimum profits, then great.

[Judiee]

Wondering what was the cost of booth space at this event.

[pixie]

Im glad you had fun and found the festival to be a success. I own my own business (not candle related) and I can tell you that you will not last long in any kind of business if you are not charging enough for your time and product. I've seen it time and time again. Just saying.

If candles are more of a hobby for you then charge as little as you like. At that point its more about having fun than anything else.

Again, congrats on doing your first festival. It sounds like you had a good time

[annie123]

I agreewith you, we can all sell for $5.00 and we can even give our candles away but if we are not making a profit we will not be in business for very long.

I just raised my prices to keep up with my expenses and my customers pay it because they know they are getting quality and that I stand behind my products.

I personally don't care what you sell for but in my experience, selling low is a deadend. Others come and go undercutting my prices but I do not care as I have set my prices and my customers pay it.

I also offer a deal. Two fers and three fers. This allows for a lower price for those willing to buy more than one. I have built in wiggle room for a jump in prices for supplies so my prices stay consistent.

If you are happy with minimum profits, then great.

[chrisinpa]

Congratulations on your good experience.

Are you letting the people that buy at the festival know these are special introductory prices?? I wonder if you will have people complaining when they order later and the price is different.

Are there other candle booths at the festival?

[Abbiepql]

Are you letting the people that buy at the festival know these are special introductory prices?? I wonder if you will have people complaining when they order later and the price is different.

Yes, imagine the surprise of those potential wholesalers when they find out they will not be paying the customary 50% cost of $5 for the candle they intend to order!

If I were to take my candles to a show anywhere NEAR my wholesale customers and reduce my products that low - regardless of them not being there (wholesalers at a show?) I would be hung.

The OP reasons as long as he is not losing alot of money - it's justified to lower prices - how about losing ANY money? If you are not paying yourself for time spent, it's a loss. How many hours were spent to make that "profit".

[GermantownCandles]

I have a wholesale account who puts a very healthy markup on the product and has never complained about a thing, actually they are very happy with the relationship that we have. My selling prices have NEVER affected their business or sales. And I did put up a sign stating my candles were "festival special pricing" along with my normal selling prices. Also, it created new orders on my website, which are definitely higher priced.

Also, I did not lose any money on any of my product, they were all marked up. It took me around 8-10 hours to make all the candles. So, including candle time and festival time, I still profited almost $12/hour for my work. So my "profit" is legitimate, and actually a pretty good salary. I know a lot of people who don't even make $12/hr at their full time jobs. Not to mention the additional wholesale account I created, and the fund raiser. Also, I have been in business for 2 1/2 years and we have always had a very nice net profit for being a side venture. So I must be doing something right?

ps. booth space was $75

[Catlover]

This raises a question I've been pondering (well, a couple of questions):

How do you deal with wholesaling if you are selling your stuff at low retail (3x cost) online and at fairs--is it just "don't ask, don't tell"? I understand if there's shipping involved, but I offer free local delivery, so.... I don't have my website info on the packaging, so I guess in theory the people who may buy in shops will just assume that's where they should go to get them. 'Course I'd rather make the retail profit my own little self.... Opinions?

Also, my prices are a little skewed due to the crazy prices of the jars I use (the smaller one actually costs more than the larger one). This leaves me with a smaller gap between wholesale and what I'm charging for retail on the smaller size. I suppose I'll just split the difference and make less of a profit on that one....and hope the larger one sells better.

My first festival (at a pumpkin patch) is next weekend, so I'm poring diligently over all the posts related to that and trying not to bother anyone with redundant questions, but.....it does happen. :rolleyes2

Terri

[Abbiepql]

First of all - I don't have any wholesale customers that would be doing a festival/show. However they might be attending the event or there might be customers of theirs that attend - so it pays to keep that in mind when preparing and pricing. I don't do show/fairs/festivals, but I have reps that do and they take products unlike those my wholesale clients sell. There are just certain items that don't translate into the wholesale market - and viceversa with the "show" trade. If that is not an option, you can indicate at the show that the prices are marked down for "cash & carry" or some special sale - my reps don't lower prices for shows, but they do offer multiple discounts for quantity purchases which lowers the price. This is not a side venture for me - I have bills to pay, insurance, electricity, phone bill, advertising, marketing, research & development, accounting fees, income taxes, occasion labor, and reps that expect to make money! I define profit as what's left after ALL expenses (including labor & time).

[sniffer]

Congrats