How to Make Money Making Candles
(Page 3 of 7)
September/October 1971
By Chuck Ferrero
All seemed to be going well for Dennis on his first call . . . until the sales rep asked the name of his company. "I don't know if I expected him to ask me that question or not," Denny says, "but when he did all I could think of was Candle Little. The name isn't registered but he accepted it and it's just sort of stuck."
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Dennis contacted Hudsons, Federals, Kresge and K-Mart on that trip and both Hudsons and Federals bought test orders of his candles. His exuberance over making the big time was not to last, however, because Denny soon discovered that the big stores simply wouldn't reorder his product on their own. Even when their test gross of candles sold out quickly, he had to follow up, constantly remind the merchandiser about his product and—in effect—sell the candles over and over again. "I had to keep pushing and I wasn't exactly anxious to do that. I was looking for a way to get out of the business grind and, like retailing, wholesaling to big stores just wasn't it."
At the same time Dennis began selling wholesale he happened—by chance—to meet a young married couple who both owned a small gift shop and sold merchandise at special craft markets. When they offered to take 500 candles on trial basis Denny was not too hopeful but he did put in a good two days of labor and delivered the candles. He soon got another order from the couple . . . then another . . . and still another order for 500 candles.
"What I would do," says Denny, "was to sell them asmany candles as they wanted for a dollar or a dollar and a half, depending on the design. They, in turn, retailed the candles for one dollar over their cost both in their shop and at craft markets. Selling them cheap like that really moved the candles. In fact, that couple consistently sold 500 or more candles at every outdoor market they attended.
"It was a good deal for everybody. The customers got their candles for a lot less than they expected to pay, the couple would clear $500 off my candles alone and, after paying for all supplies, I would make $350 to $400 for two days' work.
"Even more important, I was finally able to work when I wanted to. When I knew a market was coming, I could plan my time accordingly. If I happened to be busy I'd make the candles two or three days ahead of time, and if I had nothing better to do I'd extend my production over an entire week or more. Also, I knew exactly how much money I was going to be paid. It was no more 'make the candles and hope they sell."'
Once Dennis had found the combination he'd been looking for, he went searching for other potential small markets. "I realized that a lot of churches in every community are constantly staging bazaars or fund-raising sales of some sort so I started contacting them at random. I've found them to be the best and most constant market for my candles and universities are a close second. Fortunately, I live close to three universities and their attendant organizations—both on and off campus—are always looking for ways to make money. Those organizations are very eager to purchase good candles that they can retail at low cost while still making an attractive profit.
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