| In a recent survey of small to medium candle | | | | willing to bulk up - e.g. on wholesale glass jars - |
| makers, we found that the economy is now | | | | deals are always on the table. Because |
| having a negative impact on retail sales of basic | | | | competition is so fierce, you can enjoy increased |
| candle containers. One of our clients who operates | | | | savings and more flexible payment terms on all |
| several stores took a 75% hit in January alone, | | | | your wholesale candle supplies. As the economy |
| and others are experiencing anywhere from | | | | improves, you will likely not see deals of this |
| 10-50% declines depending on their region. During | | | | nature, so make the effort and call around. You |
| a down economy, it is tempting to discount | | | | are bound to find some candle making supply or |
| otherwise beautiful candle jars to generate cash | | | | glass house looking to dump inventory at closeout |
| to cover operating expenses and increase your | | | | prices. Take advantage! |
| revenues. | | | | The lower costs will allow you to drive more |
| However, this will not solve your basic problem; | | | | cost-sensitive clients into your store. You'll reduce |
| that is, improving foot traffic to your store(s) and | | | | prices on candle jars making them more |
| getting spooked consumers to buy. The first step | | | | accessible to average candle consumers and a |
| is internal. You need to plan for the absolute | | | | more likely comfort gift in these tough times. The |
| worst - figure out your break even and make | | | | lower costs also give you the advantage of |
| sure that you are marketing and advertising | | | | flexible promotions and incentives. You can eat |
| enough to get there. And, yes, I mean spend | | | | into your local competitors and try to take more |
| more than you normally would on advertising and | | | | market share. Eventually, this challenging retail |
| marketing. Next, make sure that you have | | | | environment will end. When it does, the companies |
| adequate cash on hand to cover at least 3-6 | | | | still operating will thrive because of an imbalance |
| months of operations or have access to credit | | | | of supply and demand. |
| facilities to cover the difference if need be. Finally, | | | | Another and equally important part of planning is |
| trim expenses that are unrelated to sales and | | | | creating additional sources of revenue. As an |
| marketing. You need to redirect your attention to | | | | example, if you are selling candle jars, introduce |
| branding your candle business as something of a | | | | chocolates, coffee, tea leaves, bath salts, lotions, |
| safe haven. By focusing on comfort, cost savings, | | | | creams or other affordable luxuries into your |
| memorable events and so forth, you will find | | | | store. You can pack them in the same types of |
| improvements in foot traffic and much repeat | | | | candle glass that you are using, provided that it is |
| business. | | | | Libbey glassware. Sanitized and food safe, the |
| I've also found that vendors are highly negotiable | | | | new Libbey-packed offerings will bring more |
| in this economy. They will take less for any | | | | customers into your store and increase your |
| number of basic commodities, especially if you are | | | | average sale per customer. |