Jump to content

Becoming a Supplier??


Recommended Posts

Hi!

So I have been thinking about this for a while but really have no clue where or how to find any info. How much of a start do ya think it would cost? Wouldn't want to sell waxes for now, just oils. What all should/would I need to know? Any and all help or suggestions would be so appreciated! Thanks!

Link to comment
Share on other sites

I have often wondered the same thing! I know if you do a search for fragrance manufacturers, it would give you a head start. Are you thinking of selling to candle makers? Soapers? Finding a manufacturer who specializes in these type of products would be where I'd start. I know many of them require a minimum per fragrance and have also heard they sample. Are you thinking to provide a certain niche in the marketplace? That would be something worth thinking about as well. :)

Link to comment
Share on other sites

There are dozens of manufacturers that carry thousands of already formulated oils. The lowest minimum quantity I've seen is 25# and prices that I've found that test well in soy & paraffin range from $8 per pound up to $25+ and does not include shipping. Of course you may be able to find some less expensive - around $6 if I remember correctly. The price depends on the price of the raw oils used in the formulation. So at a minimum a line of say 24 FOs (@ $8pp) would run $4,800. if you could find them at $8. Then add shipping on 600 pounds. And then there will be web design and all that mess after you decide on a business name that isn't taken. And don't forget to include the cost of all the bottles you would have to repour in to plus the labeling and shipping materials.

And if you wanted to make sure they would throw well in wax you would need to invest in testing the samples they can send you. Some manufacturers will only send 1/2 to 1 ounce so there won't be enough to test in all the waxes available. And they may limit you to the number of FOs they will send at any one time. Your best bet is to visit a manufacturer to see what is available. For example if you want a Vanilla they may have 20 variations and all you will have to base a decision on is OOB.

All I can say is it is a dedicated effort in both time and finances. HTH & Good luck ...

Edited by Judy, USMC
Link to comment
Share on other sites

That's a tough market to break in to. Without a pretty good bank roll that I could afford to lose I'd be inclined to start with co-op's then grow into pre-buys and then stocking surplus for retail. Many successful retailers (Brambleberry included) began that way.

Another successful alternative is to buy out a seemingly successful closing shop so you at least have some established customer base. Just know the reasons for the closing and the true business worth, not the inflated value set by the seller.

Building a company from scratch is expensive and comes with a share of risk. If you have the connections, time, capital, competitive advantage and location to make it a success, then you're ahead of the game. Many wholesalers will require minimum purchases AND a commitment to purchase a big chunk every year (Agilex comes to mind with a $10k annual spend).

I'd start with a business plan to see if the investment would be worthwhile.

Link to comment
Share on other sites

I guess I'm going to be the voice of doom here :( Sorry, but when I read your post, the first thing that came into my mind was :

There sure seems to be a LOT of established companies in this industry, going OUT of business in the past two years... and honestly, IMO , I think it's a really huge risk to take right now.

I think it's a WONDERFUL idea that you have, but honestly I don't know how feasible it is to accomplish right now.

Everyone that has replied, had fantastic info and insight into it, but going off of what TallT was saying..... Are you in an area where there are a lot of candlers ? That might help you out also. If they can buy the same FOs they get from somewhere far off, from you, that will help you tremendously.

Are you also willing to have a storefront set up ( even if it's in your home ) where people can come by and sniff the oils. I know I really enjoy that about going to Aztec, and used to be Alabaster ( Community Candle). While we all know that putting something in soap or wax will change the scent a lot of times, there's also a lot of times we wish we could sniff something before buying it. Also, offer 1 ozers. It might be a pain to bottle but I'm too leery to purchase a large amount of something I haven't tried.

Will being a supplier be your main line, or side line? Will you give up ( and be ok with giving up ) making your crafts, if your supplier business takes off and you don't have the time to pour anymore?

Do you have the space to be a supplier, even if you do already have the money to purchase in bulk? I know how much room having over 300 lb bottles takes up, I can't even imagine being a supplier ( and I had a LARGE work area ).

I'm NOT NOT NOT NOT NOT trying to dissuade you at all !!!!!!!! Please know that ! But I just can't help but think about all the candlers AND suppliers that go out of business seemingly every day.

I just know it's a huge risk............. but then again, anything worthwhile in life, is !

Good luck to you sweetie in whatever you decide to do.

Link to comment
Share on other sites

Hi!

So I have been thinking about this for a while but really have no clue where or how to find any info. How much of a start do ya think it would cost? Wouldn't want to sell waxes for now, just oils. What all should/would I need to know? Any and all help or suggestions would be so appreciated! Thanks!

Maybe you would consider starting out small re-selling FOs from suppliers that you are highly satisfied with via eBay or Etsy? Buying in 1 lb or more amounts cuts the cost and would begin to give you a little cash on hand to stash away for purchasing from a mfg down the road. There are ppl making money on eBay just by rebottling FOs and they do seem to sell good from what I've seen.

Link to comment
Share on other sites

Are you also willing to have a storefront set up ( even if it's in your home ) where people can come by and sniff the oils.

There are plenty of companies that do not have storefronts for people to sniff their oils. This is really not a factor at all. However, I agree with pretty much everything else that you said though.

Link to comment
Share on other sites

I wonder if you could start out small-- say offering 4-6 oils to begin with. Put the word out you are now selling FOs for candles, soap, whatever. Then start building up a customer base by slowly adding oils 1-4 at a time, spaced over the months (offering pre-buys as another way to build your customer base) until you build up your FO biz and customer base. That way you have the time to test a few oils at a time, spend less money, and build your FO biz. Hope that makes sense.

Seems to me if you approach it slowly then you don't have to shell out the bucks for a ton of FOs and you also have time to slowly build your biz and customers.

Link to comment
Share on other sites

Love both yours & Candybees suggestions!

Maybe you would consider starting out small re-selling FOs from suppliers that you are highly satisfied with via eBay or Etsy? Buying in 1 lb or more amounts cuts the cost and would begin to give you a little cash on hand to stash away for purchasing from a mfg down the road. There are ppl making money on eBay just by rebottling FOs and they do seem to sell good from what I've seen.
Link to comment
Share on other sites

Thank you all so much for your post! I respect your opinions tremendously! You brought up points I had never thought of..especially about how many suppliers are closing these days! Candybees idea of starting out with only a few oils may be the way to go. Was just thinking about when I first started making candles..about 7 years ago, Bert was my first supplier and I just loved her! I think she had the whole deal going on! Her customer service was super, her shipping was always fast and her oils were top notch and very reasonably priced IMHO. If she couldn't make it..well that kinda scares me now that I'm thinking about it! I can see this is an idea I'm gonna have to really think on! Thank you all again! I appreciate your thoughts!

Edited by samandkennasmom
Link to comment
Share on other sites

Theres a ton that I can't get into Canada....there are a bunch of fo's I can't try (from candle science, for example) that I would pay to get an oz or two of! It sure if that's any help,whatsoever, but yeah...what I wouldn't do for an oz of mistle toe! ;). GL, I hope you find a way to get into it!

Edited by QTsmum
Link to comment
Share on other sites

I recently (on the advice of some kind ladies here) bought from a supplier on ebay who does the repackaging of tried and true FO's from tried and true suppliers. Would help you get your FO's for free if you sold enough of what you used yourself.

I would not have bought FO's on ebay but knowing that she packages these from other suppliers (and the advice of those here who had purchased) encouraged me to buy from her.

Her prices and communication are very good, shipping is combined to a very reasonable amount and FAST!

I just made one last weekend from her called Christmas Blessings that is delicious! A Home Sweet Home kind of scent. Not certain where she gets this one. I was after just 1 4-8 oz. bottle of FO that I needed from NG and I did not want to pay giant shipping for one bottle. Of course, I ended up finding more I wanted which was great because I got a bunch and shipping was still just $5-$6.

The bottles say Angel's Candle and Soap but on ebay she is agfrench. Here is a link to her:

http://stores.ebay.com/angelssoapsupplies

Edited by justajesuschick
Link to comment
Share on other sites

I looked into becoming a supplier because there are no suppliers for soy wax that I can find in the entire state of Florida. Even GA doesn't have any. I order wax from candlescience. I talked with Golden Brands and this is the quote they gave me..

"Based on FULL truck load quantities, I have listed the cost per pound (FOB Louisville, i.e. No freight included). " Product Cost per pound

GW444 $0.7858

GW464 $0.7833

LP415S $0.7736

Notice freight is not included in this quote. The minimum order for a full truck load is 20,000 pounds. So about $16,000. The nice thing is that you can mix waxes, etc. As long as you have a minumum. Cost wise, I think candle science charges 1.57 per pound of 444 or 464. I cannot remember if this includes shipping or not. I have my candle book at home where I have my costs broken down to include and not include shipping from candlescience. When I order wax, I order between 150-200 lbs to keep costs down. So, I am thinking that candlescience is not really making as much on wax. Although 75% profit is still good. I think the fragrances must be more profitable and I bet the wicks are too.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...