Going into sticker shock...omg~omg~omg

[islandgirl]

Spent the day recalculating my candle cost sheet, and OMG STICKER SHOCK!!.

So I went and rechecked all the prices of my oils to get an average cost, some I have not ordered for a few months because I order my oils in bulk and have not poured many of the fall scents lately.

I about Sh*t myself when I saw how much the fall/Holiday Scents went up!!

Well, let me tell you ~ I just discontinued 4 scents that I offered last year for the fall.

If I am going to pay $19-25+ a pound for FO's for candles, then the scent better blow my doors down.

Some of the oils I discontinued have been ones I have been using for 5-6 years. Started out at about $11-13 a pound back then. They were really good at one time, but I swear, some of the oils I have been using for years have been reformulated and are not worth the price anymore.

Tomorrow is going to be the day I really figure out which scents are worth keeping.

I am really going to scale back this year on my scent selection.

There are a few new FO's I have been testing that are really strong and knock my socks off, and are reasonably priced. :highfive:

So.....Out with the old and in with the new and time to get rid of the ones that don't move.

Edited July 6, 2011 by islandgirl

[Faerywren]

Hear, hear! Preach it, sister!

[Candybee]

Just one of the reasons I buy a lot of my oils from CS and Fillmore. Many CS oils are under $18 pp. While all of Fillmore's are priced at $18 pp and you get a discount when you buy 5 lbs or more.

I've had to start using smaller jars. Mine went from 12 oz jars to 9 oz jars. Plus I had to price the smaller 9 oz candles at $1 more than I was charging for last year's 12 oz candles. So customers get a smaller candle that costs more. But its the only way I can keep making candles.

Like you I went into shock when I realised just how much more candles cost to make and I can't continue to absorb the price. So far customers are buying the smaller jars at the higher price all summer. Will see how they do in the fall. But I think most customers expect higher prices considering how much fuel, groceries, and consumer goods have gone up this year.

[islandgirl]

Thanks Faerywren and Candybee...

I only had a mini meltdown from sticker shock last night, but have regrouped this morning and feel much better!! LOL

As always, I will do what is needed to adjust and keep moving forward..

The higher prices for supplies is really making me limit my inventory. It will make me even more frugal.

So change is good.

[SherriLynn]

It will be survival of the fittest for those who want to stay in business. Great ideas about using smaller sized jars etc.. in the marketplace.

I too have found different suppliers for those who what to charge the exorbatant prices for FO's... there's many suppliers in the market with good prices. I've spent the last year ordering many samples in and changing to places with better pricing and good customer service. Millcreek is one of the supplies I have been sampling...pricing is close to $16 a bottle,,, customer service is great.

[Candybee]

I'm doing something to save money I did a couple of years ago that worked. STOP BUYING FOs AND USE UP WHAT I HAVE IN STOCK! Yup. You can save quite a bit if you use up those dribs and drabs of oils you bought and never finished up the bottle.

I still have my spring/summer and fall/winter candle lines but I have narrowed down the line. No more than 12 scents. I also look to see what I have in stock that can be used for my current candle line. That also saves a little. Then I fill in stock by using up FOs sitting in boxes gathering dust. If I run out of an oil THAT I AM USING I will refill that one. But don't buy new ones.

Narrowing down jars helps too. This year I have been carrying only one size candle. Thats it. I may make one of each scent for fall in a 12 or 16 oz jar to go with my basic candles for those that like larger sizes. But no more carrying 2, 3, 4 or more jar sizes. Just one basic size for all and it will save you more money. Anyway most of my customers want the smaller jar anyway and sales have dropped off significantly so thats why I quit carrying larger jars. Its saved me money not only with jars but my wax goes a lot farther.

Also staying with the glass glow. Cheaper than many soy or paraffin waxes. Go figure it used to be pricier but now the tables have turned and GG is cheaper for me. Get mine from Aztec.

[SliverOfWax]

I'm doing something to save money I did a couple of years ago that worked. STOP BUYING FOs AND USE UP WHAT I HAVE IN STOCK! Yup. You can save quite a bit if you use up those dribs and drabs of oils you bought and never finished up the bottle.

No! lol

I've been doing a lot of experimental mixing lately. Just throw a couple of fo dribbles together and see what happens. Some work, some don't. Three of my best sellers lately have come about by tossing this and that together. Then I give them funky names and away they go.

[jackbenimble]

No! lol

I've been doing a lot of experimental mixing lately. Just throw a couple of fo dribbles together and see what happens. Some work, some don't. Three of my best sellers lately have come about by tossing this and that together. Then I give them funky names and away they go.

I would like to do that too but how many do you make so you are able to test first before selling?

[Whisper Girl]

I have made a point of keeping my scents down to 10 different ones on my web page. Too many scents seem to confuse my customers. I will add new ones to my shows just to test their appeal. Keeping the number of scents down helps me buy fewer fo's in larger bottles and I save that way.

[NaturallyTru]

I keep trying to limit my scents; but I never know which ones to cut. My customers now are buying completely different type scents than my old candle business.

I'm keeping track of what sells, so hopefully at the end of the year I can purge. Just realized I don't sell that much apple pie type anymore. Weird, I consider that a basic scent.

[islandgirl]

I keep trying to limit my scents; but I never know which ones to cut. My customers now are buying completely different type scents than my old candle business.

I'm keeping track of what sells, so hopefully at the end of the year I can purge. Just realized I don't sell that much apple pie type anymore. Weird, I consider that a basic scent.

Yep whisper Girl great idea taking the new scents to shows for peoples feedback. I do the same thing.

I have found the same thing NaturallyTru, scents that were top sellers 4-5 years ago just are not selling anymore. So they were my first to get cut the other night.

It is so hard to cut down the list, but will be so worth in when I don't have to keep all that FO stocked!!! I has about 50 scents I offered, I am now down to about 40.. Going to cut back to around 30. So today is the day I get rid of ten more!!!

[deb426]

I've been doing the same, Island Girl. I've been trying to get down to 20. It's really, really hard! One thing that has helped me is to think in categories. I have so many foodie type scents because that is what is popular here but I don't need as many as I have. So I put all of my on-the-fence foodie scents in one category and will rotate them until I run out of each oil. I made a list of my "keepers" and will replace that oil as I run out. In my keepers list, I just list one as "rotating foodie scent" or "rotating spa scent." That way I can use up the oil I have and still keep room to try something new in the future.

Another thing I have done is to tweak my batches to have less waste. Now I try to make my batch down to the ounce instead of having 3 or 4 ounces left over. I used to think, oh, I'll make tarts or something. I can still do that with the occasional left over ounce or two but I am being much more careful about waste.

This is not my main job so I don't have to make that much money but I would like to make some and I definitely don't want to LOSE money. Time to buckle down and make sensible (or scentsible) decisions when buying, LOL.

[Aimee81]

I carry only the 16 oz apothecary jar and 1 oz mini muffin melts. I know you are suppose to double for wholesale and triple for retail but where I live that is not possible. For example, it cost me $6.48 for everything to make a 16 oz jar with the most popular FO I sell (Toasted Marshmallow) and if I triple that for retail my jars would be $25.72!!!! My jars are priced at $17 now and even that is high for the customer's I am sure but I can't give my candles away Just wish I had more money to buy huge bulk so I could charge cheaper for my jars/melts and make money. I had 2 business in the past inquire about wholesale pricing and wanted to sell my candles but I just couldn't because of my high cost. I have since quit making candles to sell as a business and just as a hobby since the cost is just too high for me. (And I have priced around for the cheapest Ecosoya CB 135 wax in 50 lb)

[LadyJo]

I carry only the 16 oz apothecary jar and 1 oz mini muffin melts. I know you are suppose to double for wholesale and triple for retail but where I live that is not possible. For example, it cost me $6.48 for everything to make a 16 oz jar with the most popular FO I sell (Toasted Marshmallow) and if I triple that for retail my jars would be $25.72!!!! My jars are priced at $17 now and even that is high for the customer's I am sure but I can't give my candles away

6.48 x 3 = 19.44..... so your selling at 17 each is not too far off the mark.

[SliverOfWax]

I would like to do that too but how many do you make so you are able to test first before selling?

Sorry. I'm just now seeing your question.

When I'm working with leftovers, I draw a full pour pot of wax and add the

fo usually 50/50 at 8%. I might tweak the 50/50 if one of the oils is

much stronger.

I'll then pour a single candle with the wick I think it will need, or if

one of the oils is a known 'heavy' oil, I might pour two candles with different

wicks. I'll hold the wax in the pour pot until I've finished wick and throw

testing.

Once testing is finished, I pour the remaining wax into wicked jars. If they sell, I

eventually make more, and if the sell well, I'll order more oils if they are still available.

[Aimee81]

wow, way too early for me to be doing math today...I completely butchered that one LOL. And I homeschool my four boys...oh my

[001]

Aimee have you considered doing the large apothecary jars? The wicking will likely be the same but you'd be able to charge the higher prices getting your margins with satisfied customers? Shipping (and prices) on the larger jars is almost exactly the same, and 8 more ounces of wax would only cost a couple dollars more. You could bump your price and your margins. You may also want to look into the dollar store containers (like the status jars) this could also bring down your price and add another price point without a major commitment (you can buy as few or as many as you'd like) You may also want to look int canning jars. Most large wal-marts have them for $.70-1.25 but you have to buy a dozen.

I also would like to say I am not a fan of the 2x3 rule, or when I first got into candle making it was the 2x4 rule Twice the price for wholesale three or four times for retail. If I can make 100 candles an hour for the large jars say and the price is maybe $7... if I doubled it it would mean the profit from that hour would be $700.... which I admit is pretty good. Let's say I employ two people for that hour and it cost me after insurance and everything $35. I take that out of the margins and I have $665. If I spend 5 hours selling them (gaining wholesale customers, shows, designing the website) this would be around $110/hr Personally I am ok with $50/hr after expenses. This would mean I would need to wholesale them for roughly 10.35. The retail price on these would be 19.99 and it leaves wiggle room in there for company sales (like 15% off coupons, which I split with the wholesale clients)

Currently Blankey candle markup is 100% and for those who carry blankey they are looking for a similar markup. If you were to offer 33% they may look at you a little funny. Some understand it, others don't. A candle line is a fairly large investment for any company because of the volume they would need to bring in. If it is unsuccessful it is a huge loss to them. Consignment is another story though, it is your liability and you are essentially renting space. I don't suggest doing more than 25% for consignment.

[Aimee81]

I do carry 26 oz jars ($25.00) and only make them upon request because in this area, customer's do not want to spend that much money on the larger jars and I sell way more 16 oz than 26 oz. I have considered going to mason jars but would have to start the wicking process all over again and that would cost more money and I already have $1500-$2000 in testing and all that jazz. I pay $1.35 per jar with the lid now with Enchated Lights, I buy 12 at a time and would probably save money if I bought more but funds aren't that available lol.

I really do appreciate all your help and recommendations and will consider everything you said

[Aimee81]

Help me figure this out please because my tiny brain can't.

With shipping for 50 lbs of wax I pay $100. I saw on lonestar web site per pound of wax, you will get 20 oz of volume.

I want to figure out the math how much am I paying for my wax per ounce. Please don't laugh at me as this is probably a very simple equation but I am NOT good at math and can't figure it out.

Based on lonestar's suggestion that means I would have 1000 oz of wax.

[001]

16 ounces of wax is roughly 20 fluid ounces. It is really not an exact measurement because each brand of wax has a different density which affects this measurement. It is best to weigh the empty container and then weigh the filled container to figure out how much wax is being used.

On a side note $100 for 50 lbs sounds like a lot. You might want to try and find a supplier that is closer to you. I have a supplier that is 3 states away and with shipping I am at $80 shipped when I use UPS. (I use lower weight products to help with shipping also. Ordering wax and fragrance oils together actually cut shipping down pretty dramatically for me) Once you get really big though you can order pallets and have them trucked in. When I get full pallets I pay $90 for shipment of 11 50 lb boxes. I also get a price break when I do a full pallet making the price for each 50 lb box around $65

[deb426]

50 pounds of wax = 800 ounces of wax by weight

1 pound of wax = 16 ounces. 16 x 50 = 800

[Aimee81]

I use Ecosoya CB 135 and trying to place a large order with CS. 5 lb bottle fo, 100 wicks, a couple 10 pound bags of pb wax, excel. The 50 lb is $62.99 and just to add the 50 lb box of wax to my order jumps my shipping $33.00 more So adding more stuff with my order doesn't look like it is saving me anymore money when about $33-$40 is the cost I am finding to ship just a 50 lb box of wax.

[pleasureridgecandles]

If the CS you're referring to is Candle Science they have discounts once you hit the hundred weight rate. Try adding a little more to your cart to get just over 100lbs and see if that helps your shipping any.

[Aimee81]

5 lb FO, 100 wicks, 10 lb wax, 10 lb wax, 50 lb wax and shipping is $67.15 (total of 75 pounds)

5 lb FO, 100 wicks, 10 lb wax, 50 lb wax, 50 lb wax and shipping is $82.18 (total of 115 pounds)

this is with candlescience yes.

[001]

Hundredweight shipping actually starts at 200 pounds but when you get way up there (500, 600 pounds) you get a "freight" option where they actually contract a truck to bring it to you. The best way to really figure out how much shipping is is to figure out what percentage of the total price is shipping. For instance if you are spending $100 for the order and $30 of it is shipping the shipping would be 30% Then to "cost" things you take the pure price (how much it is from the supplier) and then add 30% so if say your pure price was $5 to add 30% you would multiply it by 1.30 to get a total price of 6.50. This give you a more true price than if you just tack it all onto the wax.

One thing to think about... Candle Sceince tins are fantastic, I really love them and they are very, very light, which cuts down shipping (percentage wise) even more.

Good luck!