June 01, 2001

Selling and Marketing Candles

 
 

"The En-Light-ener" June 2001
Candle Making Newsletter

Welcome to the fifth edition of "The Enlightener" Candlewic's monthly newsletter for the candle making community. We continue to get positive feedback from many of you and we appreciate these comments.

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DON'T MISS OUT
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Don't miss our BLOWOUT SALE on CG-1 Candle Gel--just $1.25 per pound! It ends soon! You'll find information about this incredible price on Candle Gel at the top right side of our home page: 
http://www.candlewic.com

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SELLING AND MARKETING CANDLES
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This is the second part of a three-part series on selling and marketing candles. We hope you enjoyed our first part, which was published in last month's newsletter. In order to have a successful candle business it is important that each of these issues is addressed. The first chapter of this series focused on the consumer acceptance and safe use of the candle.

Part two will focus on producing your candle in the most cost effective manner and selecting proper markets to direct your efforts. 

One of the most appealing things to me has always been the ability for a candle company to compete in certain markets, regardless of its size. Even the smallest candle maker has the ability to succeed because of their personal attention, potential for offering a wide range of fragrances and colors, and their ability to react to small orders in a rapid manner.

When starting out it would be best to service local accounts--your small gift store, family-owned pharmacies, furniture stores and even consignment shops. These are always a good starting point. By selecting local markets, you have the ability to deliver the product, thus eliminating freight cost (this will be covered later). You also have the ability to work out arrangements with the owner to track their inventory level. And finally, many of these types of business enjoy the fact that the candles are made locally and they will promote that fact. You may want to look at local craft and art shows also. This is always a good starting point to build local interest in your products.

A well designed web site is always a good idea too. However, keep in mind that many candle companies have their own web site, thus it is hard to get your product in the forefront.

A good source for selling candles is through fund raisers with local organizations. This is a "win win" situation for both parties since payment typically is received at the time goods are sold. This lets you start to build a local following in the community with the fund raising organization serving as "sales representatives." The good thing is that after the event is over, many people still will be interested in purchasing your candles. 

One critical element is not to over extend yourself or take on orders that are well beyond your production capability. While it is always very appealing to have your product accepted into mass retailers, it can hurt a growing or small company. In many instances it is very difficult for smaller companies to have the same "purchasing power" as the larger ones when purchasing the waxes, scents and colors.

It comes as a shock to many candle companies that when making a highly scented candle, the scent can cost more than the wax itself. Selecting the percentage of scent used and where you purchase your scents is critical in controlling cost. The determination on how much scent to use is almost always a personnel preference decision. During this determination process, you should keep in mind that scents do have a "point of diminishing return." This means you could probably get the same scent throw with 6% as you would with the 8% scents. However, this difference will make a sizeable impact on the cost of the finished candles. You should go through this process with each fragrance you use. As you probably have found, certain fragrances by nature are stronger than others, i.e. cinnamon, mulberry and French vanilla all have a tendency to have a stronger impact. 

When possible you should buy the largest quantity available (price breaks are generally found at 25 pounds and 55 gallon drums) to obtain the best pricing levels. Sometimes, this can be difficult when buying fragrances that do not sell as well as your more popular ones.

When purchasing waxes, you have two options--blends or straight paraffins. You should select the one that works better for you at the most efficient price. Once you have selected your wax, one of the key aspects is shipping. It is important that you control this aspect as much as possible. Undoubtedly, the price per pound for shipping wax is much higher than most other products. Therefore, it is important that you look at each pricing level when making that determination. You may have to purchase more up front but you will save both on the discounts offered on the wax and the shipping. For example 200 pounds of wax shipped at one time is approximately 16% less than if you were to get 2 shipments of 100 pounds each. If you are able to take 500 pounds it is 45% less for shipping than if you took 5 shipments of 100 pounds!

Once you get over 500 pounds, you should look at cost comparison from UPS or Federal Express to common carriers. In some zip codes you can get very good rates from trucking firms.

To summarize some of the points identified, it is imperative that you review all costs--both direct and indirect costs. Some of your indirect costs will include items such as inner/master cartons, labeling requirements, skids and utilities. While individually they are not a lot they can add up over a number of candles.

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USING UV LIGHT ABSORBERS
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Ultraviolet Light Absorbers or UV's are more commonly used today than ever before. Very small amounts of these products are added to colored and scented wax blends to help reduce the degradation (fading) that occurs when candles are exposed to fluorescent light and sunlight. UV's actually "protect" the candle by absorbing more of the ultraviolet light or energy than the candle itself.

Candlewic recommends the use of two common UV absorbers. One a benzophenone, the other a benzotriazole. We recommend that both products be used together because they offer protection in different wavelength regions or at different ends of the color spectrum.

Although a candle can never be totally protected from sunlight and different dye/wax/fragrance combinations can pose significant fading problems, it is certainly advisable to incorporate UV Light Absorbers into all of your wax formulations to extend the life and beauty of your candles.

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FAQ 
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What type of wax melter would be best for me to use? 

In general there are two ways to melt your wax. The first one is a water jacket system. Water jacket units are nice because there is very little chance the wax will reach 200 degrees F which is good when you have employees working with the unit. If the heater "burns out" generally you only have to purchase the heating element to repair the unit. The downside of a water jacket system is that certain additives and the candle gel which have to be poured or melted above 200 degrees F which the water unit has difficulty achieving. The second way to melt your wax is a direct heat method. The direct heat method is more versatile in that it can melt the wax generally up to 240 degrees F and does so a little more quickly. Each unit works well but you should chose the one which will work best in your application. 



Why are there so many different additives available? 

Over the years many candle companies have experimented to perfect their formula from the appearance and performance perspective. You should not plan on using all of them. In most instances you can get to any desired finish with two additives. In rare exceptions you may need a third. Traditionally, the most used are Vybar 103 (r), Vybar 260 (r), stearic acid, AC-400 and Micro's. Each one has been designed for a specific application. Should you require any assistance on these, please do not hesitate to contact any of our Customer Service Representatives. 

 

 

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