One of the worst nightmares of a business owner is after making sales, they audit their account and notice they are running at a loss because of how they priced their products. This is because one of the easiest mistakes to make is in pricing homemade products like candles. This is why it is important to have a good knowledge of how to price your packaged retail or candle jars wholesale with lids.
In this guide, you will learn how to price your packaged candle jars by considering some important factors including sizes like 500ml or 50ml glass jars for candles. You will also get some tips to help you minimize the cost of purchasing empty candle jars wholesale so that you can strike a balance between affordable candles and a profitable business.
Factors to Consider for Pricing Packaged Candle Jars Wholesale with Lids
1. Candle Making Supplies
Before jumping into pricing one of the first things to consider is the cost of candle-making supplies. This can include wax, wigs, dyes, and fragrances. This is because their cost may vary based on the quantity and quality of each supply. This means the cost of candles made with higher quality materials will be higher compared to the ones made with lower quality materials.
Another set of candle-making supplies are the candle jars which vary especially in the quantity of purchase. If you purchase jars like 500ml or 50ml glass jars in retail it will cost you more than purchasing them in wholesale, which will influence your pricing.
Lastly, the cost of packaging supplies should also be considered. Supplies like stickers, labels, cartons, etc vary by price and quality. The type of packaging you adopt will significantly influence your pricing. This is important to help you generate reasonable profit that keeps your business going after removing your capita.
2. Labour Cost
Most small business owners often neglect this factor. Labour cost is just like paying yourself for the time and effort you used making that product because if it was someone you employed to do it on your behalf, you would need to pay them.
The best way to approach this is to consider how much you will be willing to pay someone to make the candles and package them. If you want to consider paying hourly, then pay yourself hourly. If it is per task, do that as well. The goal is to be able to compensate yourself for your time and effort. This way it will be easier to outsource some tasks and pay for that while generating good revenue.
3. Target Market
Who is your target market? Are your customers looking for luxury candles in premium packaging or budget-friendly options? Would they prefer scented candles in 50ml glass jars or in bigger jars? It is important to consider what your target customers would prefer before even purchasing the candle-making supplies.
This way, you will make the candles and packaging that suit each category of customers to enhance sales and customer satisfaction.
4. Commissions
This is necessary since you sell packaged candles in candle jars wholesale with lids. If you are considering working with distributors or retailers. This serves as an incentive to drive more sales and get more distributors.
When you consider commissions, it will influence your final pricing, which allows you to have a reasonable return on investment ROI after taking out commissions. One of the best practices is to have a fair commission rate that can be adjusted as your business expands.
5. Consider the Sizes of Glass Candle Jars
Different sizes of glass jars, like the popular 500ml or 50ml glass jars, can really influence your final pricing. This is because smaller jars are often cheaper to purchase in bulk, but may have higher costs per unit which can be influenced by their designs or scarcity.
Larger candle glass jars may be costlier because they offer more ample storage space compared to the smaller 50ml sizes but purchasing them wholesale will cost less compared to buying per unit. When you consider the size of the candle jar used to package a particular candle, it will help you arrive at a reasonable and suitable price for each size of candle you sell.
6. Overhead or Fixed Costs
Overhead or fixed costs are expenses that cover other aspects of your business like your store’s rent, utilities, marketing, equipment for making candles etcetera. You can distribute these expenses across your various products to ensure that every unit of your product contributes to covering these expenses.
Considering your fixed or overhead costs before deciding your final pricing your candles will help ensure you generate revenue for running your business without running at a loss.
7. Consider Your Profit Margin
Your profit margin is the difference between the total cost of your production and the selling price of your products. It is important when selling your candles wholesale, that you target a profit margin that ensures the sustainability of your business by covering your expenses and generating income for your business.
One of the best ways to achieve a good profit margin is to research your competitors’ prices of candles in both retail and wholesale to help you set a realistic profit margin which is also competitive.
How to Minimize the Cost of Purchasing Empty Candle Jars Wholesale with Lids
To minimize the cost of buying empty candle jars wholesale with lids, it is important to consider these tips below:
● Building good relationships with reliable suppliers can help you secure discounts like Southern Jar Company
● Choose designs that your customers would love to avoid paying higher for designs they won’t like.
● Take advantage of discounts and coupons, especially from credible suppliers.
Frequently Asked Questions
What is the best size for candle jars for wholesale?
There is no particular size that is the best for selling wholesale candles. The best size depends on what your target customers are asking for. Some popular sizes include 200ml, 500ml, 100ml, and 50ml glass jars because they work well for both small and large-scale orders.
How can I ensure the quality of glass jars with lids?
To ensure the quality of glass jars for candle making, work with trusted suppliers and request samples before making bulk orders. Look for jars that are durable with lids that seal tightly to prevent spills.
How should I price candles?
To price your candles, consider different cost factors like materials, labour, overheads, and profit margin. You should also research your competitors’ prices and target market preferences to find the right pricing.
Are custom lids for candle jars worth the investment?
Custom lids can improve your overall branding and product aesthetics but they may increase costs. The best practice is to evaluate your target customer’s preferences before deciding.