Are You Pricing Your Business To Fail?

This may happen to Wild Beauty if changes aren't made.

I learned I am. I have a few boo boo’s that I need to fix with my company. I met with Suzanne Stoeckle from Saffron Marketing. She’s from Canada and was in LA for a convention for 3 days. We met up for dinner which turned into a consultation. We went through the numbers of what it takes to make each product and came to the conclusion I’m pricing my products way too low. At this rate, Wild Beauty will close shop within 2 years. Ouch! That hurt.

For a moment I felt as if I was back in elementary school sitting in my chair being scolded by my teacher, hearing everything I’m doing wrong. I had to disconnect from my personal feelings. This was business and I didn’t want to be another startup statistic. I quickly took out my pen, notebook and began taking notes.

Get the cost of raw materials down.

I’m entering into my second year of business; Wild Beauty has grown from just selling body oils to soaps and candles. We moved from natural skin care into bath and body.  With this growth, change in inevitable. Here’s the list we came up with.

  1. Buy in bulk: My cost of materials is too high because I’m not buying in bulk. I’ve been doing competitive shopping for the raw materials to keep cost down. Instead of buying the small bamboo cups for Wild Beauty’s bamboo candles, it’s cheaper to buy the bamboo in poles and cut them myself into larger size candles.
  2. Redo my logo: I’ve moved into more bath and body since I started making candles. I’m creating another type of candle along with the possibility of venturing into perfumes or massage butters. My logo needs to reflect where my business is now. Along with domain name change.
  3. Eco Friendly: Changing the way Wild Beauty’s ships and packages also helps to reduce cost. Phasing out plastic bottles and replacing with glass. Use recycled paper for all my labels. I’m at about 60 percent now and working to reach 100%. I thought going green would be a hassle but it’s not really difficult.
  4. Underpricing: Suzanne and I went over the numbers (breakdown of costs) to make each product. The numbers don’t lie. I’m charging too little. It takes 2 months to make the infused body oils along with the natural ingredients I use to make each one such as lavender flowers, tea leaves, pink rose buds, essential oils and Madagascar vanilla beans. Some cost more than others. My prices don’t reflect it.

Those are the actual ingredients I use. Pink Rose aren't cheap. The fragrance from the rose buds that infuses and permeates inside the oil is worth it. I don't need to rely heavily on fragrances.

I’m breaking even. In the future I will have employees. Everyone else will be getting a pay check except me. A business can’t survive like that and neither can I.

So right now I’m making the necessary corrections. The positive side is my business is still young. So I can make these changes without it being too detrimental. By the first of second week of January, I should have everything implemented. I’m working on the logo, changing the concept to reflect an eco bath and body company.

Felecia Scott

Founder/Wild Beauty

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6 thoughts on “Are You Pricing Your Business To Fail?

  1. Thanks for sharing this Felecia. It’s an eye-opener to have someone tell you your prices are too low – it’s always tough to set pricing without guidance. Look forward to seeing your new logo. 🙂

  2. It really is, because I thought my prices was reasonable but once she explained everything to see and taught me the way to really run the numbers, it really opens your eyes. Thank you LisaLise for reading my blog and found the post interesting.

  3. Appreciate you sharing your experience. Some business owners over price. Interesting that you did the opposite. Hopefully you’ll update us on how the changes have impacted your business. Best wishes!

    • Thanks Denise. I’m really thankful to my friend for sitting down with me. Being patient and teaching me how to accurately price my products. It can be very confusing. I will definitely keep you updated and I really looked forward to 2012. Hope you have a great New Years.

  4. What a productive meeting! Yes, in order to be successful, flexibility, reassessment and change seem to be absolutely necessary. So glad you’re open to hearing advice. Go for it and your business will grow and be profitable. I also like that you’re becoming more “Green.” Keep up the good work.

  5. Pingback: Does Your Logo Need A Makeover? « Wild Beauty Skin Care

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