« Side Hustle School

#80 - South Carolina Man Learns to Make Candles by Watching YouTube

2017-03-21

Inspiration strikes in an upscale men’s store when a man comes across a line of handmade scented candles.

Side Hustle School features a new story EVERY DAY of someone who started a hustle without quitting their job. You’ll learn how they got the idea, how they overcame challenges along the way, and what the results are. You need a hustle!

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This is an unofficial transcript meant for reference. Accuracy is not guaranteed.
Hey, what's welcome back once again, this is not a school. I am critical about honor and privilege of bringing you a new story. Every day I have enjoyed the chronic of the worm empire, something very different for you today. What do you do if your day job is see- and you have several modes off or at least a time of year in which your work is much less busy well now, You start aside us all, maybe that yet reason why we have so many teachers stories on the show, because teachers are busy hardworking, yet they offer some extra time in summers. While today story is not about a teacher, it's about a guy with a seasonal business that he opera
much of the year, but also has a lot of downtime downtime. He learned to do something very creative that you will not be surprised to hear also makes money and trust in South Carolina. Smart Gascons owns and operate commercial kitchen equipment, business. This business provides propane kitchen equipment on wheels for weddings businesses seasonably based on the wedding season, which, in Charleston slows toward trickle in a cold winter, of January and February, and the very hot summer, months of July and August this day, Job to lay aside gig, originally the care about, while he was working brothers bar and the bar burned to the ground. After that, the kitchen equipment business became marks full time, job this is of course, another important reason started side hustle You know when you might have to rely on it. The businesses caught event kitchens. During the downtime marked, began his new hustle of buying wholesale candles from a lot
company and selling them on Amazon using a prime seller account, has not worked he'd order from a company they which, at the candles to Amazon customers what order in an Amazon with ship the candles to the customer so as part of this process mark never actually touch those candles, but that was a good Carter Project, but soon mark realise, even though it would be more work. He private a lot more money if you manufactured and sold his own brand of candles, instead of just reselling his a moment came when he was traveling in Austin Texas. You walk into an upscale men store and he saw a nine ounce candle selling for eighty five dollars to people really bike. Those four eighty five dollars. Apparently some do so on a flight home. He began. Develop his own brand cod meeting in market candles, the name references, the intersection of historic market trust him. So how do you learn to make candles if you ve ever done anything like that before, while just like the ancient Egyptians? Did you log onto Youtube, Mark found and watched countless bidding Materials on Youtube from a company called candle science, which
the largest purveyor of de I why candle supplies in the country after watching the tutorials he went to Michael's crap store, bought some supplies and started messing around Mason jars from his kitchen and any other jars you get his hands on me ended up, giving about two hundred candles to friends and family as part of the trial and error process. More clone temperature plays a huge role in the setting of a candle, so he tested pouring the hot wax at different degrees hundred eighty five one: seventy five one hundred and sixty five and so forth. He finally settled on that last number. I turned sixty five degrees Fahrenheit for the ideal finish. Those initial candles were white, wax in clear glass with a white label, not bad, but the design of it felt very 1980s. He wanted something more progressive, so he started searching far and wide for glassware until he found in Amber Q He really liked, as he developed a new and improved version with a redesign label created by local graphic designer sales have begun to take off popular sense,
close lavender, camomile, red, ginger, saffron and blackberries age March candles cost about seminars and fifty cents to make. He sells them for sixteen dollars wholesale and who dollars retail they're going to come back to that in a moment, because parliamentary why he chose those different prices for different kinds of sales. The manufacturing costs. His expenses include supplies, advertising and the chunk of sales. Amazon takes So he's net profit on Amazon, even more is much larger is about fifty percent. In addition, the selling on Amazon, he also sells it farmers markets in some retail stores, as well as on Etsy and through his own website. What he may those adjustments He quickly began earning about a thousand dollars and net profit each month. He expects that number to increase, as he gets picked up by other markets, and his goal for the end of this year is to make
one thousand dollars a month in Amazon sales alone, longer term goals include increasing wholesale buyers through trade shows, and maybe eventually making meeting and market a national home goods brand. That includes bed sheets, bath, towels, kitchen, towels and so on, but first he's going to master the candle market, great success story here, love. What mark is done. It is completely possible to have a virtual hustling, which you actually dont, have any inventory you're strictly recent as we ve seen in many other stories, but clearly in this example mark was wise to cannot take on the whole process himself and make his own brand and it took a little while to crack the code and figure out. Ok, is the right temperature. What is the right, design, etc, but once you get to a thousand dollars a month with a project like this, which is where he was out and we spoke, it is often very feasible to quickly ramp at. With just an improved distribution, arson, better marketing, some glad he's working on that point too tough break,
about pricing, an item that you manufacturer like what mark has done with the candles recycling. Those items at different prices, indifferent channels, not just to recap, Mark at three different prices technically for with the farmers market discount, but the three basic crisis were seven dollars and fifty cents for manufacturing costs must say eight dollars for simplicity. Sixteen dollars for his wholesale price and thirty two dollars for his reach, our price. So this pricing doesn't come out of thin air. If you take a dollars, the manufacturing costs You double that number! You get sixteen dollars if you double that number, thirty two dollars. So eight sixteen and thirty two, so we start from the top markets that his retail price at thirty two dollars This is the price you can expect to pay on Amazon or in a store and because he's working. Distributors. He has wholesale pricing in which companies can buys candles in bulk. And then we saw on their own and the hotel price is half of the retail price which is common, so they pay sixteen hours market still making about eight
her candle, but then the distributor or the wholesaler the retailer, whoever it is also able to make profit, because they then double the price to thirty two dollars. We got eight. Sixteen and thirty to these points can work well for everyone involved in the process. Mark could choose to only do retail business and be the only seller for scandals, but he's determined that is actually to be more successful by offering the wholesale model or he could do wholesale. Only. The only way to buy his candles is throw distributor or retailer, but at least for now nice I'm doing both, which is completely possible, especially if you have a pricing structure like this one way wouldn't work super well as if marks all his candles at the wholesale rate of sixteen dollars, but then also sold them at retail for sixteen dollars or just a bit more. That we work well for whoever else was selling candles, there's no room for them to make a profit. So there's a tradition and a wholesale retail relationship in opposite varies by industry, but a general rule of thumb is that the retail price he's gonna be twice whatever the wholesale price.
And this has been disrupted in some ways in certain industries? There are different roles, but this is the traditional price structure dimension. That mark also sells it. Farmers markets- and there is a fourth price at the farmers market. He actually discounts to twenty five dollars again, They're not seems like a reasonable discount. Thirty two dollars to twenty five dollars to you can save seven dollars if you buy it at the farmers market, its falling off at that market. You can't buy online. So he's not really competing with his own distributors and by pricing. Smart, like this able to reach different kinds of buyers in different parts of the country, I never hear him otherwise. So congratulations marked Rachel bowing to make candles by watching you tube go to this website and place in order, my shop, if you want at that meeting and market learn about this? making industry just come over decided for school dotcom, slash. Eighty eight zero had always inspiration is good, but inspiration combined action is so much better point to take the idea you hear about here on a show and do something within four years. I'm critical about this is out of school and I'll. See you tomorrow,
Transcript generated on 2020-08-07.