My hubby- I love him but shucks....Profit percentage)

[SparkysCandles]

So my husband and I were talking this morning as I was working on my website and he suggested that I start out my candles at a 10% profit. That is was I started out as many years ago but quickly learned I wasn't making much profit vs. cost. I won't mention what I have my profit % at right now(it's above 60%) but I was wondering what you have all set yours at?

[HorseScentS]

The consensus I've read on this board is that cost x 2 = wholesale, and cost x 3 or 4 = retail.

[David Fields]

For us it depends on the product. Generally we like to charge 4 to 5 times cost. If we can't get twice cost at a minimum, we discount the product and drop it. There are many, many costs involved in a business other than cost of goods sold. To cover those costs you have to get more than twice cost. Although, it does depend on the size of the business. When you first start out, you normally don't have many addtional costs; so, CoG is sufficient. But as your business grows, the other costs rear their heads. Oh, we charge our retail price less 40% for wholesale pricing. And we give volume discounts. HTH

[pixie]

The formula I had always heard is a little different than what horsescents is. I heard cost x 3 = wholesale, and wholesale x 2 = retail.

[bells4shells]

This type of thing takes a bit of forecasting. Are you making your products with the intention of selling them in a retail shop at any point? Are you making them to sell directly to the consumer? How many hands will be dipping in your pocket before it reaches you? Of course it will depend on how big you'd like to grow. I am dealing with these questions myself as I regroup, so what you charge will really depend on where/how you plan to grow your business.

[SparkysCandles]

I have my own website and just rented a small "shop" (Luckily my hubby is a painter and the owner took off lots of rent in trade for painting the building inside and out) Now we're just pouring candles and building inventory. I plan to grow the business. Before I decided to open up shop again I did some research around Spokane to see if there were other candle businesses out here and if so were their products like mine. There are a couple ladies here but they don't offer what I make. I already have orders so all is good.... for now. I'd like this to turn in to my full time job but we all know that is a fantasy for most. I'm not quitting my day job, yet, LOL. I figure my profit is at a good rate. I have it where if I need to adjust it I can without much impact. I just loved the look on my hub's face though when he saw what it was compared to what he thought it was.

[HookieBear]

I wish I had enough experience to sell my. I made a candle yesterday and didn't like how it turned out. that is my 3 one

[FaithfulScenter]

I wish I had enough experience to sell my. I made a candle yesterday and didn't like how it turned out. that is my 3 one

I couldn't tell you how many I have not liked, remelted, or thrown away. It is a long long long process of testing, trial and error! As far as profit, I think it all depends on cost, plus how much time you have put into it, or what it is worth to you. For instance, I make mostly tarts, and the clamshells I sell for cost x 3. I also make crumbles, which is a long process and always gives me a major hand cramp, so I sell those cost x 4. And I sell more crumbles than I do clamshells!! It depends on the area where you live, and what people are willing to pay.

Edited October 9, 2012 by FaithfulScenter