Buying Fragrance Oil Supplies in Bulk
Posted by andrew sanderson on
We all know that buying fragrance oils and wax in bulk offers good savings but how much of a saving can you make and where are the biggest savings to be had?
I've compared best and worst case scenario here but have left out shipping costs. When buying fragrance oil supplies in bulk you will often receive reduced or free shipping which would make the savings for bulk purchase even greater.
To buy an average priced fragrance oil, 60ml would cost around £8 and 500ml of the same fragrance oil would cost around £32.50. Buying 1kg of wax (in this case I've used an average price of Golden Wax 494) would cost £8. Buying a 22.5kg box of the same wax would cost £130.
I have excluded vat, your time and electricity from these calculations.
Making a 50g snap bar (excluding labelling, dye and packaging) would cost 88p if you buy small volumes
Making a 50g snap bar when bulk buying would cost 52p which is a reduction of 41%
This is for an average priced fragrance oil. Moving to a more expensive fragrance oil (£10 for 60ml, £40 for 500ml) the costs for a 50g snap bar would increase to £1.00 when buying small quantities and 63p when buying in bulk.
Buying your raw materials in bulk can give you great cost savings but you will only realise these cost savings if you have a customer base for that quantity of home fragrance raw ingredients.
Because fragrance oil only makes up 8 to 10% of your wax melts, the price difference between a wax melt made with an average priced fragrance oil and a higher priced fragrance oil is not that great. A 30% increase in fragrance oil cost adds 10 to 13% to the finished product cost.
The biggest saving to be had is buying wax in bulk. As this makes up the biggest percentage of your product. If you can only buy one ingredient in bulk, buy your wax in bulk. Wherever you can, take advantage of reduced shipping costs by bulk buying.
Similar savings apply to reed diffusers and rooms sprays although, due to the higher percentage of fragrance oil used in these products, the fragrance oil cost does have a higher bearing on the finished product cost.