If you’re looking to make a statement as a luxury brand, there are certain aspects you need to consider when developing your strategy. It will take some time to craft your luxury brand image, but once you do, you’ll find yourself immersed in an audience that views your work at a higher level.
Here are specific qualities that customers look for in a luxury brand:
- Perceived Value
A good place to start dreaming up your luxe line is to pull inspiration from other luxury brands and take notes on the caliber of their products and how you view them based on each bullet point above. Start with luxury fashion brands, hotels, and cars. Everything they do is part of their strategy to market themselves as a luxury brand, from the way products are made to the wording and design they use on their website and packaging. Look at their price points and compare them to their competitors, see how they position themselves in their industry and what they do to cater to specific audiences.
It’s important to know that preferences of customers seeking luxury products may differ from one geographical location to another. Just like any other marketing goals, your communication strategy as a luxury brand should be tailored to who you’re targeting while remaining true to your brand story and values. This means there is room for adjustments to be made to your strategy.
For example, insight from Luxury Branding: How to Establish or Re-Position Your High-End Brand tells us that Louis Vuitton used a slightly altered approach when marketing their luxury line in Japan. Instead of keeping their communication strategy the same, they found a way to resonate with the target demographic by collaborating with a Japanese artist to develop a more colorful version of their popular monogram. Considering the economic crisis in the early 2000’s, the brand slightly reduced their prices to stay aligned with the luxury market, too.
If you’re looking to position your brand as a luxury candle brand, you’re going to want to look at what others in the industry are already doing. How are their logos designed? How are they positioning their products using packaging and photography? These details are important when it comes to appearing elevated and luxurious.
Your brand story is also a key driving force that tells customers how they can be part of your brand experience if they resonate with who you are and why you do things the way you do. For example, Coco Chanel has captivated audiences with her classic style, ambition, adventurous character, individuality, and modest beginnings. Her story is inspirational and women aspire to be part of it, so make sure you consider what your story conveys as you position your luxe line.
Like we mentioned earlier, elevated products and exclusivity are also key elements to implement when positioning yourself as a luxury brand. The quality of how your items are crafted and the kind of statement they make will help set the tone for your luxury image. When sourcing supplies for products, make sure they are high quality and something unique and rare that you can’t find just anywhere! Some luxury brands offer exclusive limited edition items or collections. This is a great way to sell luxe products if your audience is invested in your brand.
To highlight one of our Makers who is putting their own form of luxury into the world, let’s look at Hutwoods, an Australian based brand. Their homepage is sleek, clean, and one of the first products you see is their “Luxury Candle & Solid Perfume Gift Box.” A few things stand out that speak to us in a luxury language - the font they use for their brand name, the vessel colors available in the gift set, the option to customize the set, and the simple and elegantly white packaging for their product. All of this is revealed upfront with great product photography so customers get a glimpse of the exclusive item they can’t get anywhere else.
So how do you price a luxury candle?
Since it’s an upscale, elevated product, it should definitely be priced higher than your other candles (and yes, you CAN sell them for high-end prices). Although your specific price point may vary depending on your geographic location and the specifics of your collection, based on extensive market research, it’s evident you can make a nice plush profit.
Here’s how you can make a luxe candle using Wooden Wick Co. components:
- Natural Onyx Vessel = $35.96 each
- Translucent Refill Insert = $2.80 each
- 7 ozDeluxe Satin Soy Wax (7 oz) = $1.19
- 1 oz Tobacco Blossom + White Santal Fragrance Oil (12%) = $3.75
- Crackling Booster .03 x .375” wide = $0.21
- Wick Clip = $0.07
- Wick Sticker = $0.16
TOTAL = $44.14
As we look at the market for luxury candles (i.e. The Luxuriate), their retail price for one of their luxe candles is $150, or $99 if you purchase a subscription.
The suggested retail price for this type of candle is $140 - $160. If you sell it for $150, you make a profit of *drum roll please* …$105.86!
Refills can be sold separately so your cost on those alone would be $8.18. We suggest selling them at a retail price between $40 - $50. Selling your refills on a subscription based model is an awesome concept to bring you consistent revenue and repeat customers.
You will also need to add in your packaging and labor cost. Packaging and strength of fragrance are key in a luxury candle so when developing those, make sure they look and smell like luxury. This is where your own research and testing comes into play, along with the ability to elevate your creativity as a Maker as you take on the exciting challenge of designing your very own super luxe line.
We understand if you’re still questioning whether or not you can really sell a candle for $150, but the answer is YES! Sure, the market for luxury candles is not as big as the market size that is willing to purchase a candle from a popular retailer like Bath & Body Works, but when you are making a generous profit on each unit sold, you can afford to sell less and truly focus on the special, one-of-a-kind experience you provide customers with each sale.
We believe in your work and the countless hours you spend planning and making. Not every brand is meant to be luxurious, but we know you have what it takes to put a luxe line out into the world. How does the saying go? You never know unless you try…
Happy Luxe Making!