A comprehensive blog weighing in all factors to educate young entrepreneurs and candle enthusiasts to consider outsourcing their manufacturing to optimize cost and scale up business.
If you are a candle enthusiast running a candle business or planning to start one, we have a word of advise for you. Ever considered outsourcing manufacturing to an expert and focusing on items that truly need your undivided attention? Having worked with thirty plus brands over four years, we have carefully drafted this blog to share our learnings and recommendations with you.
Here are four strong business drivers for you to consider contract manufacturing
Trust the Chandler
We’ve seen many hobbyists purchasing wax, thermometers and wicks and then various pots and pans, all in the name of producing the perfect candle. These courses introduce you to candle making as a hobby. The courses are highly unlikely to discuss the best practices, industry standards, export requirements, safety and storage of high volumes and six-sigma manufacturing techniques. A large scale manufacturer brings expertise to the table to help you develop your product the way you had envisioned. Proven manufacturers have more experience than the average entrepreneur in product quality, cost savings, and supply chain management. They guide you on the best materials, processes, and applications when sourcing a bespoke candle range.
Reduce Overhead & Maximize Profit
"Reducing costs is the number one reason why companies outsource. 59% of companies surveyed cited cost reduction as their motivation for putting this into practice”
But, cost-savings are just part of the equation. Outsourcing gives you the power to manage your budget and prevent overspending. Primarily, contract manufacturing makes it easier for a company to produce its products without having to take on considerable overhead. Be it fragrance, wax type, container, print or packaging... work with your manufacturer to design your candles. Savings can be realized in reducing labor costs, space & rent, overhead maintenance, co-ordination & logistics, and redundancy costs.
Scale
If you’re manufacturing quality products, that range can skyrocket, which is why savvy entrepreneurs outsource their supply chain to manufacturers. Candle making requires a high degree of science, accuracy and experience to manufacture high volumes with consistent quality at reduced costs within the stipulated time period. When you experience a boost in demand, outsourcing allows to meet customer orders without straining internal processes and making additional investments.
Design with Ease. Invest in your Costumers.
“Design is not just what it looks like and feels like. Design is how it works.” -- Steve Jobs
Outsourcing manufacturing leaves small candle businesses with room to invent & simplify. Most customers said they’ll leave a brand if they feel like “just a number“. By outsourcing manufacturing, you will be able to focus on your core strength – conceptualize great themes that people like to use. Just share the requirements with the manufacturer and you will have samples at disposable with complete information on contents, application and pricing. Focus on strategy, design and building a relationship with consumers. Also, go a little deeper to understand the consumers, demand cycle, prevailing trends of fragrance products and platforms to spread the word.
At Sterling Theory, we offer a pay-as-you-go model. This model allows your candle business to grow at your own pace. You can test the market, hone in on your target audience, and check business assumptions to make sure the demand exists. Get in touch for a conversation.