Wholesale or Retail?

Kathy
Northwoods Candle Company, LLC
Hi Nicole,
I presently do all three! I like wholesale to small stores. I have a minimum for the stores of 24 different fragrances for votives. 18 in each box. $.80 per votive and they sell them for $1.79. The stores keep track and call me when they need more. I then send them only what they are out of. Jar candles can be a bit pricey for small stores so I allow them to pick and choose what they want. I charge the store $11.85 for a 16 oz. jar and they in turn sell for $16.95. I try to stay in a 100 mile radius of home. I deliver their first order and after that, if I haven't heard from them I give them a quick phone call that usually results in an order.

Retail is ok, but basically word of mouth and some craft shows (but not many - those jars are heavy!).

I have a brochure that is in the works at the printer with pictures of products I carry, and info on soy wax and benefits. I then have 2 different separate inserts I can slip into the folded brochure - one price list for wholesale, one for retail. Whoever calls me, I have the info ready to go.

As far as consignment - I do a small display - 10 different votive scents, 20 jars, in a bookstore and art gallery. They keep track of sales, take 35% off the top, and send me a check every month. It's close to home so I stop in on occasion and see if they need anything. I will be taking out the spring/summer scents next week and adding fall/winter/Christmas scents. It's not too soon to start pouring for the holidays. Whenever I pour, I just pour a few more for this store. They get the "left overs" so to speak, but they sell well here too.

I still have time to be creating, pouring, experimenting and still have another full time job.

Oh, sorry I haven't sent you all my info, I need your address again.
Email me please. Fishinupnorth@centurytel.net.

Kathy

This is a tough one Nicole. Generally, wholesale price is 50% of retail as has been said. However, it is a tough decision to try and do both. If you're selling wholesale, you probably don't have a lot of overhead and can afford a lower price. If you go retail you have to figure in overhead and cost of goods sold to determine retail pricing. And if you're trying to do both how do you come up with a pricing scheme, where one isn't affected by the other? We started with a retail shop that over a year didn't generate enough traffic to pay the bills at the end of the day. Now, we've moved the shop home and sell wholesale, cutting many costs; but it is more work to get the customers as well. Just some thoughts from experience. :) Deb

Hello Nicole,
I sell both wholesale and retail. I have a $150.00 minimun order for any wholesale orders. That is really a fair amount and is respected by almost everyone who retails product. Most people realize that you are in the busines to make money. If you sell your product at wholesale prices (versus retail) you have to sell enough to make money on the deal. Any less and it would be hard to make much of a profit. For instance, if I sell my candle for $16.00 retail, then I sell wholesale for $8.00. Some people charge more, some less. But if I keep with my minimun order of $150.00, then I still make a profit on my candles. Be it a smaller profit. It is still a profit and I get my name out to lots of other people. Once the market realizes the difference between soy and paraffin, then that number will change. I just had someone approach me about ordering 4,000 candles. You do the math at $8.00 per candle. The numbers will keep increasing. We just have to be patient and keep at it. Some people just go wholesale and they do a great business. I don't know, I get too bored. I need to constantly be challenged. So, I do both. But it can really get you frazzled. To say the least. I sell my candles outright. Then they own the product. Whatever they sell, they sell. I find it too much running around to keep tabs on candles in the stores. I want to be in my lab making candles, not checking on accounts at stores. It can really get to be a hassle. Hope that helps, Carol

Carol & Dan
The Fort Village Chandler's
beth's soy candle co. LLC
bethssoy@ticon.net
Fort Atkinson, WI
920.568.9770

We sell both wholesale and retail. We also sell to small stores. As for pricing if your selling wholesale you need to figure out what your cost is and then multiply that but 50% (ie votive cost you $0.25 your retail price is $0.50) but if you are selling retail multiply your wholesale cost by 100% (ie votive cost you $0.50 then retail price would be $1.00). Some stores what to do consignment so they may charge a monthly fee for you to have product there and then get a percentage of the total dollars that is sold. Some stores want to purchase wholesale then they can set the price they want to sell them for.
Hope this helps you. Call or email if you hve any other questions.

Pat Collins
641-486-2239