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Wholesale Pricing for Home Fragrance: Margins, Tiers & Negotiation
Aromiso Team 1 min read
Understanding the Cost Stack
A typical candle’s cost breakdown:
- Wax + fragrance: 30-40%
- Vessel + wick: 15-25%
- Packaging (box, label, insert): 15-25%
- Labour + overhead: 10-15%
- Factory margin: 10-20%
Volume Tiers
Most factories offer tiered pricing:
- 500-999 units: Base price
- 1,000-4,999: 5-10% discount
- 5,000-9,999: 10-15% discount
- 10,000+ / Full container: 15-25% discount
Typical Retail Margins
- Candles: 60-70% retail margin (2.5-3.5× wholesale)
- Diffusers: 65-75% retail margin
- Essential oils: 50-60% retail margin
- Gift sets: 70-80% retail margin
Negotiation Tips
- Commit to annual volume for better pricing
- Pay 50/50 or 30/70 for better unit costs
- Consolidate SKUs into fewer, larger orders
- Ask about mould/tooling cost amortization
- Negotiate free samples against first order
#wholesale
#pricing
#margins
#b2b
