Owning a Business is one of the hardest but rewarding things I have ever done.
There are so many pros and cons and when you transition your hobby into a business, I think it takes longer to get it into gear when from a hobby. Here’s why…
Some say that it’s not really a business unless you’re turning over 10K a month and others say as long as it pays for itself and your bills. When you start a hobby it’s most likely you have a full time job so you don’t really focus on pricing to much. Which bites you later on.
First and foremost, I made the mistake when I started my business to not price correctly. What do I mean? Well sure I make a profit on my candles, a small amount but this meant that I left no room for Wholesale. I can’t get my products into stores because I didn’t give myself enough profit margin to allow it. I have now effectively cut off all other avenues of income and can only rely on my online store. This honestly is not the way forward if you want to grow further.
Pricing, the most debated thing when it comes to consumers. Customers will normally always say to a small business, you cant possibly charge that and yet they are happy to go into a large retail chain and pay double the price for a product that was Made in China, Made with harmful chemicals, doesn’t burn correctly and was Made with a machine.
Does a paraffin wax have better scent throw? Yes it does, which is why they use it but it’s not good for you or your fur babies. So I pay more for Soy Wax.
Is Paraffin the cheapest wax to purchase? There is approx $1.70 per kg difference between Paraffin and Soy Wax Sold In Australia.
Do they get cheaper prices because they make in bulk? Yes, when they make 10,000 units of the same candle in one go it’s a lot cheaper then me Hand Pouring 3 to replenish my stocks. Average difference between 5kg to 20kg of Wax is $2.98 per kg. That’s a lot of money when you break it down.
This also applies to the everything else that goes into a candle.
Jar + Lid
2 x Labels
1 or 2 wicks on average
Wick tabs on each wick
Wax
Scent
Colouring
Candle Box
Shipping Box
Shipping Materials (bubble wrap + packing beads)
Plus all the equipment and your time to make it.
This is for 1 Candle Only.
In the last 2 years suppliers have been steadily increasing their prices. It now cost on average an extra $2.50 to create 1 Candle compared to 2 years ago. Plus shipping costs but that’s a story for another day.
When all this was going on I decided to take it on the chin thinking I was doing the right thing by my loyal Customers but I was actually doing myself and family a disservice because I was making my business go backwards financially. I stand by my comments about not charging through the roof, I know how much it costs to make a candle but I still need to make sure my business is growing at the same time.
If consumers are happy to pay on average $34.95 for a Medium Candle surely they will be ok with my price increase coming in January? Right? 🫣 The joys of business, the uncertainty but knowing you don’t actually have a choice if you want your business to survive another year. Will I see loyal customers move on, probably but I really hope not. I hope my product speaks for itself. I hope the clean burn and scent throw proves the price is right. I hope the hand poured in Australia is worth the cost. This price increase means I can wholesale and get into retail stores. You can then save on freight and go smell all the yummy scents and see the difference in quality between Hand Poured with Soy Wax vs Machine Poured with Paraffin.
This next step in Sol Candles & Scents is going to be a good one and I am excited about where it’s going to go. There are a lot of exciting changes on the way but the I wanted to chat about the yucky pricing first.
What does this mean for you right now? Nothing but on January 1st 2024 there will be a price increase. Not everything will increase and in true transparency I will make sure everyone is notified closer to the date.
Thank you from the bottom of my heart. Thank you for supporting my small business. My heart fills with so much joy when I hear the little sales ding 🛎️.
If you have any questions please feel free to reach out to me.
Take Care of yourselves!
Christie 🧡