Pricing

Dear Nicole,
Re: Pricing... I have been charging $10 for an 8 oz candle and have no problem at all. I look at all my costs, figure in the fact that they burn for 90 hours (compared to parafin, 8 oz burns approx.35-40 hrs. and cost anywhere from 12 to 15 dollars for a good candle). I double my costs for retail plus 3 dollars for burning longer (which by the way is still less than parafin). I figure I am still leaving room for price increase year after year, depending on inflation.
Carol
QUESTIONS: bethssoy@ticon.net

At www.naturesgardencandles.com there is advice about pricing, along with other advice about starting your business. They say wholesale should be your cost x 2 and retail should be cost x 3. (Other people I know say retail should be cost x 4.) I did pricing studies on mine including labels, wicks, wax, additives, jars, lids, etc. Mine are in apothecary jars and pricing is as follows: (NOTE: I advertise pour volume, not jar size. I don't want my customers measuring container capacity and feeling like they paid for "candle" they didn't get.)
Wholesale Retail
5oz $5.00 $ 7.50
10oz $8.30 $12.50
16oz $11.00 $16.50
24oz $14.50 $21.75

votives - 18 ct box
unscented $12.00 $18.00
scented $15.50 $23.25

So, my retailers make 50%. Also, one of my selling points is that the candles burn so clean the jars can be reused - or refilled. If a customer brings back the container, I give them $2 off a 5oz candle, $3 off a 10oz candle, $4 off a 16 oz and $4.50 off a 24oz. I give my retailers 75% profit on these if they handle the jars the customer brings back.(Remember, the jar is now out of my cost, so I am able to give this and make more money than I would on a candle I had to purchase the jar to fill.) People LOVE this. Talk about customer loyalty! (PS - I am sure to tell customers to discard unburned wax in the trash, not down the drain.)

My aunt used to have a specialty shop (very successful) in Florida and she says retailers usually won't carry an item they can't keystone (turn 100% profit on). This would make my pricing cost x 4. However, I don't think that's the case in our region. I am very comfortable with my pricing as mine have great scent throw and burn wonderfully. I know I have a value-added item. Also, I am almost certain my retail prices are less than for Yankee soy candles, but I haven't confirmed that yet.

Remember - it is easier to lower your prices than raise them, so do your homework and make sure you know your costs and are making money doing this!

Any comments about my pricing are welcome.

Susan Andersen
Cottage Chandler
andertoe@direcway.com

Nicole,

I took a class on starting your own business. The first thing out of his mouth was RAISE YOUR PRICES. I started out of the gate knowing I had an excellent product that burns twice as long (or longer) than other waxes ( I know for sure because I tested my against Yankee). Why not get the same price? My candles are value added because of the burn time. I tell customers, compare mine to theirs! They have done so and don't mind paying my prices which are:

• Votives: $1.50

• 10 oz jar: $10.95
• 16 oz jar: $16.95
• 24 oz jar: $19.95

--Kathy--

I am able to charge more for my candles in my area, I live just west of Des Moines, IA. I use mostly apothecary jars and I charge $7 for a 5 oz, $11 for 10 oz, $15 for 16 oz, and $20 for a 26 oz, (these prices include a 6% sales tax). I also offer a 10% discount on purchases over $25.00.

I do have quite of competition from several other soy candlemakers in and around Des Moines, but I haven't had many compliants on my prices. Most people are willing to spend more on my candles, because they usually smell stronger than what they have purchased from other sources. I figure I can always go down on my prices in the future when I can buy my fragrances in bigger bulk.

Can anyone give me any idea what they charge for votives? I am just starting to experiment with these.

TIA,
Kim
www.raccoonrivercandles.com

I use a 12 oz jar which holds approx 8.5 oz of soy wax. I sell these all day long at $6.95. Also use a 26 oz Apothecary Jar which holds approx 22 oz of soy wax. I have no trouble selling these at $16.95. I also create a 3 wick soy in an octagon shaped dish which holds about 20 oz of wax. It sells for $16.95.

I live in a depressed economic area and have no problem getting these prices. I am constantly told that my wares are very reasonably priced compared to competitors.

I also offer a refill service and charge 65 cents per ounce for candles up to 1.5 pounds, 60 cents/oz for candles over 1.5 pound but less than 2.6 pound, and 50 cents per ounce for candles over 2.5 pounds. The refill service requires the use of an accurate digital scale.

My greatest error was charging too little in the early days for fear they would not sell. It took me four years to get the prices up to where they are now after making this initial pricing mistake.

Hope this helps,
Brian Bock
The Candlelier, Inc.
Parkersburg, WV
candles@thecandlelier.com