cybersix Posted November 7, 2006 Share Posted November 7, 2006 Hi, I need some opinion!I finally found a good paraffin, so after some testing I'm ready to buy this instead of my usual preblended wax.It costs me less than the wax I'm using right now. So my prices to customers would be lower then now, about the 13% less.I'm happy because I could lower my prices, I have to admit that price is the big problem with my candles (after all, with what I'm paying, I can't do in another way) but what if I lower them now.. and in a while I will have to raise them again? We all know that the prices for paraffin are getting slightly higher day by day, so now I'm very confused.This 13% difference is already rounded up, I mean: I will pay 0.0037 euros per gram, so I put in my calculator 0.004, so I already have a very slight margin.How would you manage the situation? Thanks in advance for your opinions! Quote Link to comment Share on other sites More sharing options...
ah-soy Posted November 7, 2006 Share Posted November 7, 2006 Don't lower your prices - no one needs to know your costs are less! Continue to offer a quality product at a fair price. Keep your savings for you as income or put the difference back into your business so you can continue to grow through various marketing techniques... Quote Link to comment Share on other sites More sharing options...
cybersix Posted November 7, 2006 Author Share Posted November 7, 2006 I can see your point...I would have a little more money to invest in other things... but truly, the price I come up for a finished candle is a little high.. I've been wanting to be able to offer more good prices from a long time... for example, I sell a 3x3 pillar for $9.50, and the wholesale price is $6.40. I can't really compare my prices to other hand made candles, but I see that people fly away when they see my prices, and who asks for wholesale never comes back when they see my catalogue.I'm totally confused!Thanks for your opinionDon't lower your prices - no one needs to know your costs are less! Continue to offer a quality product at a fair price. Keep your savings for you as income or put the difference back into your business so you can continue to grow through various marketing techniques... Quote Link to comment Share on other sites More sharing options...
Janette Posted November 7, 2006 Share Posted November 7, 2006 I think it is good if at least some people think my candles are too expensive. If no one thought they were over priced, then they would have to be under priced. There will always be those who have no idea what is involved in making something by hand. Not to mention the amount of time and money invested to learn to make the product. I know it is a struggle to find a price that is workable so that you get paid and the candles get sold. Before you do lower your prices, try to let a little time pass and see how things go. There is no way to tell when prices are going to go up for wax and fuel again. I don't mean to be doom and gloom, but I don't think things in the Middle East are going to calm down anytime soon. Do you offer a reduced price if someone buys multiple candles? I find this works well for me.Janette Quote Link to comment Share on other sites More sharing options...
Scented Posted November 7, 2006 Share Posted November 7, 2006 I wouldn't lower the prices either. What happens if you have to raise them? Then they'll moan Quote Link to comment Share on other sites More sharing options...
wenebara Posted November 7, 2006 Share Posted November 7, 2006 I would not lower my prices, but I would have a sale every now and then. Also, you might want to come up with a catchy special, such as 5 for $10, 3 for $25, etc. That would lower the price some, plus the customer won't expect the lowered price each time. This also gives them a discount on buying in bulk. I'd hate to lower the price, then have to raise it right back up for some reason. Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted November 7, 2006 Share Posted November 7, 2006 Since you've gotten a little bit of a price break what you might consider doing is offering a discount for multiple candle purchases.Since you've gotten 13% lower pricing now, why not have a special deal such as "buy 3 (or 2) or more candles and save 10% on your total purchase." That way, if people only buy one candle at regular price you will keep all the difference in profit.What that pricing structure could do for you is drive up the volume you will be selling. Even though you have to offer a discount, you might wind up selling 2 or 3 candles instead of one that you might have sold otherwise. You will still recover the cost of your candle PLUS make a little extra since you found cheaper wax. Quote Link to comment Share on other sites More sharing options...
cybersix Posted November 7, 2006 Author Share Posted November 7, 2006 Many thanks to all for your thoughts.After reading these messages and talked twith my BF to have another opinion, I think I will keep myself safe from prices rising, and my prices will remain the same.But I will offer some discount, every now and then, or by volume, now I have to think well about it.I'm new in selling, and I really appreciate your help.Thanks! Quote Link to comment Share on other sites More sharing options...
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