I'm starting a candle company using the highest quality materials available with recycled/recyclable packaging. As a result, it costs me around £10-12 to produce one complete product, and I'm unsure how to price it for online and retail.
If I charge over £20, I feel it would become a luxury purchase, with the brand having to represent such values. Exclusivity, prestige and perceived superiority are not traits I want to forcefully portray (e.g. Louis Vuitton, Gucci, Tom Ford, etc.) – it just so happens that the price would be high due to the quality of the materials.
I feel people mainly purchase from the previously mentioned companies purely from an ego perspective – rather than a sense of actual quality. It leads me to believe I may have to play into this idea just to fit into the overall 'luxury' narrative.
If I charge under £20, after tax and fees the profit margins are so small that I fear there wouldn't be enough sale volume to stay afloat. One option is to use lesser quality materials to reduce costs; however this would put me next to all the other candle startups. The whole idea is to avoid selling an inferior product.
I would greatly apprecaite some advice on how to go about this issue!