Blest2BAmerican Posted February 11, 2010 Share Posted February 11, 2010 I'm going to be selling at a location that requires 20% of my sales. I'm really struggling if I should raise my prices 20% for when I'm at this location or just look at it as just doing business? One of the items I'm going to be selling is candle/wax warmers and by the time I price them after I've paid for shipping I'll only be making $5.25 off each one. I didn't really want to raise my price on those because I wanted to stay in line with what the company retails them at. What would you do? Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted February 12, 2010 Share Posted February 12, 2010 Is the 20% in addition to the store rental fee? If not then I would treat it like the store rental fee. Quote Link to comment Share on other sites More sharing options...
Blest2BAmerican Posted February 12, 2010 Author Share Posted February 12, 2010 It's just a flat 20% fee. What I'm wondering is if I should raise the retail price the warmers to give me little bit of profit? By the time I paid the 20% my profit would only be $2.45. Hardly seems worth it but yet I'm trying to get my name out there more. Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted February 12, 2010 Share Posted February 12, 2010 I don't think you're really doing anything to get your name out there by selling warmers that any other retail store might have. Your candles, however, are a way to get your name out there since they are your unique creation.If you are determined to sell the warmers, I would try to find a way to buy them cheaper--either through a different source, or by purchasing in larger quantities to lower the cost per unit. Quote Link to comment Share on other sites More sharing options...
Judy, USMC Posted February 12, 2010 Share Posted February 12, 2010 I suppose you are making & selling tarts or clamshells, too. I can kick up my profit margin a little by packaging a clamshell or 2 with the melter. I don't sell the melter as a stand alone product either ... I want the customers to try my scents and come back for more!Oh, I just want to add that to cover a 20% commission you have to increase your price by 25%. Example: if you want $8 from an item you want to increase it by 25% or $2. That takes it to $10 for the sales price. Your 80% would come out to $8.If you have an item priced at $8 and increase it by 20% it would come out to $9.60. If there is a 20% commission you would only get $7.68. Quote Link to comment Share on other sites More sharing options...
Blest2BAmerican Posted February 12, 2010 Author Share Posted February 12, 2010 I don't think you're really doing anything to get your name out there by selling warmers that any other retail store might have. Your candles, however, are a way to get your name out there since they are your unique creation.If you are determined to sell the warmers, I would try to find a way to buy them cheaper--either through a different source, or by purchasing in larger quantities to lower the cost per unit.There is no one else in this area that sells the quality of warmers that I sell except Scentsy. I get them wholesale at half off by by the time I pay shipping (which is only a couple of states away) it cuts into my profit. Do you have any recommendations for suppliers? I do sell tarts, clamshells and melts in addition to wicked candles. I mostly sell my warmers with a wickless or wax melt package. I was asked to sell on a military installation periodically as a service to which I accepted but realized the profit margin would be smaller. Quote Link to comment Share on other sites More sharing options...
KoalaGirl Posted February 12, 2010 Share Posted February 12, 2010 Just curious, but how would the organizers know how much you sold??20% of revenue seems an awful lot! Quote Link to comment Share on other sites More sharing options...
jenscandles Posted February 12, 2010 Share Posted February 12, 2010 I ended up raising the price on my warmers slightly over the suggested retail to help cover the increased cost of shipping. I started at the suggested retail last year and found this year I needed to adjust when it was time to reorder. It hasn't hurt anything here. Sometimes it's hard to realize that suggested retail is just that. People adjust their pricing to cover higher costs all the time. Sometimes you can eat some of the higher cost but not always.Good luck. Quote Link to comment Share on other sites More sharing options...
Blest2BAmerican Posted February 12, 2010 Author Share Posted February 12, 2010 Just curious, but how would the organizers know how much you sold??20% of revenue seems an awful lot!There is a sheet I have to track it on and then get a customer signature with each sale. Quote Link to comment Share on other sites More sharing options...
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