MwangaCandles Posted April 20, 2012 Share Posted April 20, 2012 Hey everyone! I am in negotiations with a fairly large store to carry my candles across the country. This is my first transaction of this type.Does anyone have experience in this area and know the margins retail stores like to make on products such as candles? Thanks!Mike Quote Link to comment Share on other sites More sharing options...
Vicky_CO Posted April 20, 2012 Share Posted April 20, 2012 That is a good question I know small retail store like a mark up of x2 but I do know large store have a smaller mark up due to shear volume that they sell. Here is my advice quote them the price you need to have, then let them decide how much they need to mark up for the profit. I personally would just keep to my standard wholesale price. With my small retailer I tell them they can charge what ever they wish I do give them a suggested retail if they ask. Quote Link to comment Share on other sites More sharing options...
Judy, USMC Posted April 21, 2012 Share Posted April 21, 2012 (edited) I would be prepared with a tiered pricing scale. In my experience, chains expect a "per unit" price reduction based on order volume. (Ex: 1,000 units @ $2, 2,000 units @ $1.75, 4,000 units @ $1.25) Their margin will vary. They may order 1,000 units to start (their cost $2) and price them @ $5. If sales are strong and they reorder they may go up to 4,000 units and their cost goes down to $1.25 so their profit margin will be much larger. Vicky is correct. Please look at your bottom line and I hope you've considered including some factors. If they want a high volume and short (as in quick) delivery date do you have the capacity to do it? If you would need to hire help making the quantity they want your wholesale price may have to go up to cover increased labor. Or you may need to include a short term rental on a larger pouring facility. Make sure they give you a deposit and ensure that amount of money cover the cost of materials. And most importantly (I've found) include the cost of your own lawyer to review the contract before you sign it. So I'd recommend that you develope a wholesale price list that you would be comfortable with. And take your time when negotiations start ... don't be pressured into setting a price until you know exactly what size order they are willing to commit to. Remember they are looking to make the largest profit they can for the least amount they can pay you.HTH Edited April 21, 2012 by Judy, USMC Quote Link to comment Share on other sites More sharing options...
MwangaCandles Posted April 24, 2012 Author Share Posted April 24, 2012 Thanks for the advice guys! We'll see what happens in the next few weeks or so! Thanks again and maybe you'll see my candles in stores near you soon! Quote Link to comment Share on other sites More sharing options...
HorseScentS Posted April 24, 2012 Share Posted April 24, 2012 Thanks for the advice guys! We'll see what happens in the next few weeks or so! Thanks again and maybe you'll see my candles in stores near you soon!Congratulations on your success! Your candles look really nice! I only wish you were not saying the negative things about paraffin that I saw on your website, because based on my research, it's not true...and there are no more lead wicks being sold in the USA. Quote Link to comment Share on other sites More sharing options...
Maggie Posted April 25, 2012 Share Posted April 25, 2012 Congratulations on your success! Your candles look really nice! I only wish you were not saying the negative things about paraffin that I saw on your website, because based on my research, it's not true...and there are no more lead wicks being sold in the USA. I have to agree with you about the negatives. At one time I was pouring both paraffin and all soy candles. I never put down paraffin even when people would say...oh goodie you have soy because...and then they would list all of the things they thought were true about them. I quickly corrected them...lol. Also, when using fragrance oils you can't call your candles all natural. Your candles look nice and best of luck with your business but I would seriously think about rewriting your Why Soy page. Quote Link to comment Share on other sites More sharing options...
LynnS Posted April 26, 2012 Share Posted April 26, 2012 You've only posted 6 times and started the Board 4 months ago.I assume you have been making candles for years to get such a large chain to carry your candles all over the US. Wishing you luck and if you get this big plan on hiring lots of help.Yes as someone said It is 100% natural if you add fragrances. I will check out your site and see your candles.I am sure they are nice but there are candlemakers who make both pariffin and soy.They want to please both customers.LynnS Quote Link to comment Share on other sites More sharing options...
JI Posted May 15, 2012 Share Posted May 15, 2012 Mwanga,Your candles look amazing. In defense of Mwanga, there are some grounds to what he says on his website. CNN and other major new orgs carried a story recently about paraffin and their toxins. I personally only work with soy; however, I am not adverse to using paraffin candles in my house on occasion. But Mwanga has a point. http://articles.cnn.com/2009-08-21/health/candles.air.pollution_1_candles-indoor-air-pollution?_s=PM:HEALTH Quote Link to comment Share on other sites More sharing options...
Beth Posted May 16, 2012 Share Posted May 16, 2012 Mwanga,Your candles look amazing. In defense of Mwanga, there are some grounds to what he says on his website. CNN and other major new orgs carried a story recently about paraffin and their toxins. I personally only work with soy; however, I am not adverse to using paraffin candles in my house on occasion. But Mwanga has a point. http://articles.cnn.com/2009-08-21/health/candles.air.pollution_1_candles-indoor-air-pollution?_s=PM:HEALTHBut the same article also states: Barbara Miller, a spokesperson for the National Candle Association, says "no candle wax has ever been shown to be dangerous or harmful to human health.""Paraffin wax is neither toxic nor carcinogenic," says Miller. "All types of properly formulated candle wax have been shown to burn cleanly and safely." & to say that "many paraffin candles still contain lead wicks"......... ???????? It's a little extreme, yes? Quote Link to comment Share on other sites More sharing options...
JI Posted May 16, 2012 Share Posted May 16, 2012 The only ones I saw that contained lead wicks were imported from China and sold at a major store. I initially thought the wicks were zinc. I used to be involved in lead paint abatement. We had these wicks looked at closely and they were indeed lead. Any candle made in China with a metal cored wick, I get suspicious about. (Even though it might on occasion be zinc.) Then again, what do I expect? The whole scandal with the lead on painted toys, melamine, lead-contaminated toothpaste, etc. Quote Link to comment Share on other sites More sharing options...
JI Posted May 16, 2012 Share Posted May 16, 2012 Regarding what Beth pointed out, I also think it depends on the grade paraffin. I wouldn't be as hesitant to buy paraffin produced here in the US or overseas in Europe; I would be selective with my source. I personally only use 100% soy in my candles. But high grade paraffin is probably not too bad. I'm sure one day they'll come out with a study saying that residual pesticides, etc. in soy wax is producing toxins in the home. Even if you grill a piece of chicken, "toxins" are produced. Quote Link to comment Share on other sites More sharing options...
JI Posted May 16, 2012 Share Posted May 16, 2012 Back to Mwanga's successes; Mwanga, can you give us any tips to secure those types of contracts? Congratulations. You must be excited. Quote Link to comment Share on other sites More sharing options...
wildwings Posted May 17, 2012 Share Posted May 17, 2012 Looks like your thread got a little hijacked . Congratulations on your move forward, it is going to be a lot of hard work at the beginning if you grow that fast as far as getting your "ducks" in a row but it will all come together. Wishing you success!! Quote Link to comment Share on other sites More sharing options...
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