The Twelve Tips of Candle Making
On behalf of the Candlewic Company, we wish to thank each and every customer for all of their support in 2010. The past 12 months have definitely flown by and we hope everyone had a great year. Over the past year the candle market has definitely shown some new life and renewed market interest. The interest in natural products like soy and palm continue to develop a strong following because of their eco-friendly appeal to consumers. Paraffin wax is still strong due to the ability to deliver the fragrance throw consumers demand.
What has changed for many of us is how to develop and find new customers. The important thing with any business is to keep up with current trends in product lines as well as marketing and sales technique. We feel our En-light-ener is an excellent resource in keeping all candle makers informed of these activities.
It is truly enjoyable when people send us their kind words on this publication. One issue that seems to generate the most comments has always been our Holiday Issue and because so many people did enjoy it in the past, we will be reposting for all our new subscribers.
Our projects highlight everything we did in 2010. Our staff did an excellent job in creating new and creative projects. We also like to give Chandler some time off so in this issue he has provided some excellent resources to help solve some of your problems while he is out. However, if you can’t find your answer please be sure and send it to us and we will do everything possible to get you the correct answer.
Since we are so close to the Christmas holiday we will keep in that spirit and present these tips in concert with the 12 Days of Christmas. These are not necessarily in any type of order, except where I could find a corny way to incorporate into the suggestions.
12. Drummers Drumming (Can’t resist this one)
As the number of shopping days dwindles, it's imperative to finish strong. Be sure to "drum" up as much business as possible before the holiday. Offer incentives to help reduce inventory.
11. Pipers Piping
Most companies fiscal year will be ending shortly. Be sure to get your tax information together so when it comes time to pay the piper (had to reach on this one) you will be prepared.
10. Evaluating Your Inventory
Evaluating your inventory is a very important year end exercise for any size business. Reducing inventory can be very important because it can generate cash flow for the new year and not be taking up valuable space in your warehouse. You didn’t make any money on candles sitting in your warehouse or shelf. Holiday candles are difficult to sell after January 1st unless deeply discounted. Excessive inventory takes up space and hinders your ability to purchase new products.
9. Donate to Charity
If it appears certain candles will not sell, consider donating them to an appropriate charity. This will go to a good cause and can help with your tax deductions. If they have no value, be sure to get them off your books so you do not have a tax liability on items that have no "market" value. Check with your accountant for all true tax questions.
When it appears selling at full value will not happen, offer deep discounts because generating the sale in most instances is better than having the inventory for another 9-10 months.
7. Donate to Your Community
Think about giving away the candles directly to the community. Take 20-30 candles with a nice bow to your church, spouses work or neighborhood holiday party. Give them to individuals that may not necessarily know that you make candles. They would be very appreciative of this gesture and may be more inclined to purchase your candles in the future.
6. Geese a Laying
While the information is fresh, look over your holiday sales and determine which items were big sellers (Golden Rings) and which are ugly ducklings (in this instances non-sellers). This will help determine which products you will want to drop from your product line.
5. Golden Rings
While you are looking over sales data, don’t just look at sales but also gross profit (see the May 2007 issue on pricing). You may have several items that the profit is better than others. Examine ways to sell more of the higher margin products in 2011.
4. Calling Birds
Reach out to all of your customers and let them know some of your plans for the upcoming year. It might be new fragrances, new containers or even types of candle. Most people start the New Year with a lot of optimism, and if you can put ideas and concepts in their process early enough, you will have an advantage over your competition.
3. Change Candle Names
If a candle is a holiday specific fragrance rename so you can extend the selling season until the end of winter. A Christmas Cheer might turn to Winter Delight.
2. Be More Efficient
Since there may be some slow days, look at your operation and see if there is any way to make it more efficient. Any new equipment you might need. Year end is always great for budgeting and planning so you can kick the New Year off right. While the inclination is to wind down the year we have always been an advocate of taking this slow time to examine the entire business.
1. True Love
Most consumers love candles. Be sure to use this in your marketing plan for 2011. Candles can serve many functions; room freshner, accessory and even function as lighting. Be sure to incorporate all of these as you plan for new products in 2010. Most important be sure your passion and love for the business still burns.
On behalf of the Candlewic Company we wish everyone a safe and happy holiday season and do look forward to working with you in 2011. We have done a great deal in other areas to keep in touch with our Customers. Be sure to check us out on Facebook, Twitter and Ebay.
I personally wanted to thank everyone for trusting me enough to send me all of your inquiries. I truly enjoy reading each and every email in that it shows how many people share the same passion as I do for the “art and business of candle making”.
I do like to point out that when I may be off duty we do have several other resources that may be of assistance:
We launched 2 new Videos to help you make your basic soy candle and also how to help pick out which wax may be best for your application.