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Pricing/Commission Guidelines

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Hey All,

 

I have a couple of questions on pricing eo's and commissions.

 

I have studied and used eo's for several years, so am pretty familiar

with general pricing. What I would like to know-what is everyone

charging for custom blends? I have developed my own custom blends and

am now wanting to market them, but I am not familiar with an " industry

standard " on the pricing of blends. BTW most of my blends contain 6

eo's and all are straight, no carriers and I am using 10ml bottles.

 

Also, I have the opportunity for my oils to be carried in several

spa/salons (YES!) But, I am not familiar with what is considered fair

practice for the salon and myself. I don't want to have to raise my

prices in order to pay a hefty commission to the spas, so any advise

would be greatly appreciated!

 

Warm regards and continue to be,

 

Lori

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On Nov 19, 2005, at 10:08 PM, Lori wrote:

> What I would like to know-what is everyone 

> charging for custom blends?  I have developed my own custom blends and

> am now wanting to market them, but I am not familiar with an " industry

> standard " on the pricing of blends.  BTW most of my blends contain 6

> eo's and all are straight, no carriers and I am using 10ml bottles.

 

It depends on what's in the bottle ;-) I can make some generalizations,

but it's probably more useful to look at the specifics you are dealing

with. In general your wholesale prices with be around 40-50% of your

retail price on a product like you have described to be competitive.

 

I think we are using the same terminology differently, so let me be

sure I understand your meaning by custom.

What I call a " custom blend " is a blend I make specifically for the

unique and special needs of a client who contacts me to do so. I make

" custom blends " and charge for this service for both retail and

wholesale customers- aromatherapy and perfumery.

 

I think what you are referring to as custom though are simply the

formulas you have created and that you are planning to market/ sell in

general. You describe combinations of undiluted essential oils- I

normally refer to these are synergies and sell them as such. Blends in

a carrier of some kind I call blends, anointing oils, etc.

 

By the way, if you are selling undiluted blends to the public it is

always a good idea to assume they have no idea not to put these

essential oil blends directly on the skin (and various other placed

they feel moved to do so) without proper dilution and safety taken into

consideration. It's wise to label with clear warnings, etc. when

selling something undiluted whether a single essential oil or a blend.

Otherwise they will think they can use it neat on their skin- or

client's skin,, etc. Which they can not.

 

>

> Also, I have the opportunity for my oils to be carried in several

> spa/salons (YES!)  But, I am not familiar with what is considered fair

> practice for the salon and myself. 

 

 

It depends on many specifics. Certainly you want to measure the cost of

your materials and come up with retail, suggested retail and wholesale

prices that are fair, competitive, and make it worth your while. Look

at similar products and at your market. And, even better.....write a

business plan! ;-) We don't often speak of such things on ,

but if you really want to have a successful small business a business

plan is an EXCELLENT place to begin. You will need to look at your

market, costs and pricing when you do this (and much more).

 

 

> I don't want to have to raise my

> prices in order to pay a hefty commission to the spas, so any advise

> would be greatly appreciated!

 

I sell to spas, but I'm not sure what you mean here regarding raising

your prices and " commission " ...

 

>

> Warm regards and continue to be,

>

> Lori  

 

Best to you and Mazel tov-

 

Elizabeth

 

Whole Life Essentials

Organic & Wild-Crafted Essential Oils & Hydrosols

Pure Botanical Products for Health, Wellbeing, & Beauty

Retail, Wholesale, Private Label, & Custom Product Design

http://www.WholeLifeEssentials.com

 

 

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