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Buying fragrances and Incense sticks in bulk and repackaging them in smaller packages for resale

 

There are a large number of businesses that are run on the simple concept of buying products in large quantities and repackaging them into smaller units for resale. The concept is to buy in wholesale quantities for reselling into smaller or retail sizes.

This concept can be applied to fragrances, and incense sticks as shown below.

 
Example 1

This example will evaluate the concept of buying fragrances in bulk and repackaging them into smaller bottles.

The example will evaluate the costs and gross profit margins to buy a 500gms (about 16oz) bottle of Perfume oil for repackaging into 1/3 oz Roll on bottle for resale.

Assume you are dealing with an expensive fragrance with a cost of $100.00 for 500 gms (about 16 fl.oz.).

How many bottles 1/3oz roll on bottles can be filled with 16oz of fragrance ?
•  Number of 1/3oz bottles that can be filled are about: 16 x 3 = 48 bottles

Therefore the cost of the fragrance in each filled bottle will be = 100/48 = $2.08
The cost of each 1/3 oz empty roll on bottle is about = $0.35
Therefore the cost of fragranced filled roll on bottle = $2.43

To this cost one needs to add the cost of labels, any packaging, labor, and overhead expenses.

1/3 oz roll on bottles with high quality perfume oils are usually sold for $8 to $10 in retail. The prices will vary depending on the region and market the product is being sold and can be more or less than the price mentioned above.

The example will evaluate the costs and gross profit margins to buy a 500gms (about 16oz) bottle of Perfume oil for repackaging into 1/6 oz Roll on bottle for resale.

Assume you are dealing with an expensive fragrance with a cost of $100.00 for 500 gms (about 16 fl.oz.).

How many bottles 1/6oz roll on bottles can be filled with 16oz of fragrances?
•  Number of 1/6oz bottles that can be filled are about: 16 x 6 = 96 bottles

Therefore the cost of the fragrance in each filled bottle will be = 100/96= $1.04
The cost of each 1/6oz empty roll on bottle is about = $0.24
Therefore the cost of fragranced filled 1/6oz roll on bottle = $1.28

To this cost one needs to add the cost of labels, any packaging, labor, and overhead expenses.

1/6 oz roll on bottles with high quality perfume oils are usually sold for $4 to $5 in retail. The prices will vary depending on the region and market the product is being sold and can be more or less than the price mentioned above.

 
Example 2

This example will evaluate the concept of buying incense sticks in bulk and repackaging them into smaller bags. The example will evaluate the costs and gross profit margins to buy a 500gms (about 400 sticks) package of incense sticks, costing $12.00 each to repackage into smaller incense bags.

The example will evaluate the costs and gross profit margins to buy a 500 gms packet of incense sticks, containing about 400 fragrant incense sticks, and repackage them into packets containing 10 sticks each.

How many small incense packets containing 10 sticks each can be made from 1 large 500 gms incense packet?
• Number of 10 incense sticks packets that can be made are about: 400/10 = 40 packets.

The cost of each set of 10 incense sticks is = $12.00/40 = $0.30
The cost of each small incense bag = $0.03
Therefore the cost of small packet of incense is = $0.33

To this cost one needs to add the cost of labels, any packaging, labor, and overhead expenses.

The retail selling price of the 10 stick incense packets ranges from $1.25 to $2.00. The prices will vary depending on the region and market the product is being sold and can be more or less than the price mentioned above.

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