Edistosmom Posted August 25, 2016 Share Posted August 25, 2016 Hey everyone! I was just looking for some input from you, about your pricing. I'm trying to hone in on how much it actually costs me to make each candle (which is incredibly difficult!) and then price from there. Any tips? Getting into the holiday season, and I'd like to price my candles appropriately. Thank you for any and all pointers here! 1 Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted August 25, 2016 Share Posted August 25, 2016 You are the only one who can figure your costs. I break down my cost per oz for wax and fo. I estimate my cost of dye, labels, elec. used in the process, etc. Typically, and generally, retail is 3x or 4x cost, and wholesale is 2x cost. Those are guidelines only. You have to factor in what price your market will bear. Bottom line is this - it's YOUR business and you get to do it however you want. Good news, right? Quote Link to comment Share on other sites More sharing options...
Edistosmom Posted August 25, 2016 Author Share Posted August 25, 2016 Thank you! I wasn't really sure what the pricing guidelines were. I appreciate the help! Quote Link to comment Share on other sites More sharing options...
Jcandleattic Posted August 25, 2016 Share Posted August 25, 2016 The easiest way I did it before I got my software, was to set up an excel spreadsheet with formulas. Plugged in my numbers, and it would give me the totals I needed. Don't forget to add your time. I personally don't "work" for free, even if it's at something I love, so incorporate that into your costs as well. As OG said, you also have to take into consideration what your market will bear, but at the same time, don't sell yourself short, but don't outprice your product either. It's a fine line to walk, but once you know exactly how much it costs to make your product, pricing it makes it much easier. 1 Quote Link to comment Share on other sites More sharing options...
Siren12 Posted August 25, 2016 Share Posted August 25, 2016 Ugg this is one of the hardest things for me. Especially since i make small amounts my cost to make it is pretty high. I use the 3x to 4x cost to make and the price I sell at I feel is good, then i look at local candle businesses that are bigger than mine and they sell for more than i sell mine, i am going to have to see how my fall/holiday goes and adjust my prices accordingly. My summer was kind of slow but i pretty much expected that. Good luck! Quote Link to comment Share on other sites More sharing options...
Trappeur Posted August 25, 2016 Share Posted August 25, 2016 10 hours ago, Jcandleattic said: The easiest way I did it before I got my software, was to set up an excel spreadsheet with formulas. Plugged in my numbers, and it would give me the totals I needed. Don't forget to add your time. I personally don't "work" for free, even if it's at something I love, so incorporate that into your costs as well. As OG said, you also have to take into consideration what your market will bear, but at the same time, don't sell yourself short, but don't outprice your product either. It's a fine line to walk, but once you know exactly how much it costs to make your product, pricing it makes it much easier. Jane, that is very important to figure your labor cost into a candle....something I admit I'm very bad about. What do you figure your worth an hour? I know what I figure myself out to be (and I would say 15.00 to 20.00 an hour) but it is just so hard to incorporate into a candle...but yes I agree we should do that. If that was too personal a question, I apologize... Trappeur Quote Link to comment Share on other sites More sharing options...
moonshine Posted August 25, 2016 Share Posted August 25, 2016 (edited) There used to be a spreadsheet floating around on here with the formulas already made to figure out costs I lost mine and would love to get my hands on it again as I haven't really re-calculated everything with higher shipping costs now As far as fragrance oil- I always took the average of my highest and lowest price one to get a figure for that....I personally do not have the time to price out every oil and they all differ sooooo much in price what does everyone else do in this case? plus it costs more if you run out and only order 1 bottle rather than a larger order, I would love to hear how everyone handles this in the cost equation Edited August 25, 2016 by moonshine 1 Quote Link to comment Share on other sites More sharing options...
Trappeur Posted August 25, 2016 Share Posted August 25, 2016 Another thing to figure in is electric, paper towels, insurance and delivery if not shipping and I'm sure there are other things. When pricing out oils, I base my figures on the highest and not the lowest. I'm not trying to rip any of my stores off, but I deliver all my orders myself to the shops so they have no shipping on top of their wholesale prices. Like we all do, we all work hard at our business here and are in the business to make money so I feel for the amount of difference between a more inexpensive oil and a more expensive one, it isn't much to me and like Moonshine said, I don't have the time to do each scent differently. This is how I do my figuring of the actual cost to make a candle and then I double this price to the shop. 1. Wax 2. Oil 3 Jar cost (which includes the shipping to me from the vendor where I orderedI it from) 4. Label for jar 5. Caution label 6. Wick 7.Lid for jar if purchased separately. 8. Uv inhibitor I don't use dyes or any additives in candles so there are no extra costs there. All of the above things always have the shipping included in from the vendor to me. I sell wholesale to shops so I'm doing mass quantity. For example 1 account I have I sell the 16oz canning jar to. It costs me 3.75 to make 1 jar and I charge 7.00 to them as they order hundreds and hundreds so I give them a little break so my profit is 3.25 a jar. Now since I sell by the case (12) my profit is 39.00 a case. From start to finish I can do no problem 12 candles in an hour so 39.00 an hour is not bad profit. This is just an example of breaking down how I could do 12 candles from washing each jar, drying, wicking and heating wax from beginning to the final ending of pouring. But I don't do my candles like this really as I always have my jars already washed and wicked (well most of the time I do...lol). With having all that stuff done I can say I can make 2 to 3 dozen in about 1 1/2 hours... Now what I don't have figured in my costs to make a candle is my actual labor and electric and delivery to the shop....But like I said if I can make candles with a profit of 39.00 for an hours work or even say 1 1/2 hours work that is not too bad. But the more I think about it, if I figure my labor cost into it, I'm probably making a lot less! lol...I better go and recalculate what I've just typed. And also too I don't know how others do it, but when figuring out what to charge for wholesale prices to the shop the proper way is to double your cost. But when you think about it, when you get all products delivered to yourself you have shipping in it. Now when you go and double the costs of what it takes to make a candle to the shop, they are paying double shipping, unless of course you don't charge another shipping charge to them? What do others do here? I myself just double everything so that offsets my labor, electric and gas for truck to deliver and what other things there might be. Am I right or wrong? I'm probably going to get blasted here...lol...oh well! Trappeur 2 Quote Link to comment Share on other sites More sharing options...
moonshine Posted August 26, 2016 Share Posted August 26, 2016 Wow....I never thought of the whole double shipping charge for wholesale and I never figured in other supplies like electricity, paper towel, or even labor costs for myself.....I thought I read on here some where your profit is your labor?? my head is now spinning and need to totally recalculate everything - but there is also the competition to think about - I still don't understand how people in my area can sell the same jar, soy, dye free candles for way less than me anyone have that spreadsheet out there? any expert advice from people that actually have brick and mortar stores on the correct way to figure costs? I am not losing money but I may not be making enough 1 Quote Link to comment Share on other sites More sharing options...
Guest OldGlory Posted August 26, 2016 Share Posted August 26, 2016 I don't think there's a cut and dried 'right' or 'wrong'. It's your business and you get to make the rules. If you are satisfied with your results, who cares what someone else thinks? You have to stay competitive. I spent a few decades in retail management. You would not believe the slim net profit margins most of these retail companies run on. Quote Link to comment Share on other sites More sharing options...
TallTayl Posted August 26, 2016 Share Posted August 26, 2016 Moonshine, we all just *assume* those selling at lower prices are getting better raw materials prices. In reality, many are losing money. That totally explains how so very few are able to stay viable for ve long. We see competition come and go all the time. with the internet "our market" is wherever in the world our customers are. If the locals won't pay what we need to profit, we find those who will happily pay elsewhere. I live in a rural, somewhat financially challenged area surrounded by some of the most affluent people in the state. Those affluent people don't shop at local craft shows. To get in front of them I have to be where they shop, KWIM? It took me a few craft seasons to realize that the customers at the shows, even the really HUGE shows, we're not "my" customers. Pricing: I had had to take a hard look at pricing when I wrecked my knee. Being totally laid up meant I had to hire people. Having to pay someone to produce, clean, etc. made me realize I was running a hobby, not a business. Raising prices was the only way to make it a profitable business. I'm still tuning things, realizing that being busy is not the same as being profitable. I cut out an awful lot of time consuming products that were netting about zero but were eating all of my time. For others I am bundling products to make them worth while. Check out Lucky Break Consulting for pricing ideas. Lela, the owner, forces most people to go into sticker shock when they realize just how much they need to charge to actually earn a profit. Truly. 4 Quote Link to comment Share on other sites More sharing options...
moonshine Posted August 26, 2016 Share Posted August 26, 2016 Excellent site and I thank you for the info This is definitely a hobby for me and I have been wanting to break through to make it a real business and that gave me a lot of perspective on it I sell quite a bit but and have a couple wholesale accounts but it seems all the money goes back into more supplies and I don't do online sales which I should start, need to get all my eggs in a row and see what happens marketing myself more We made the decision to stop selling Christmas trees this year as it has become to competitive around here for the amount of work and time that goes into it the profits just are not there anymore....you can buy a tree at the gas station or grocery store now and even though they are not the same quality people look at the price, especially for something that goes up for a couple weeks and then it's over - plus many people are going artificial now, a lot of the big nursery's around here have more artificial than real trees and this was where I sell many many candles, tree season- so I need a game changer and make sure I actually make money 1 Quote Link to comment Share on other sites More sharing options...
TallTayl Posted August 26, 2016 Share Posted August 26, 2016 Great way to reinvent yourself, Moonshine! i see a lot of growing popularity around the tree-like crafts, like pallet trees, wooden 'corner' trees and porch/yard decor. This is true for most all major holidays, btw. Quote Link to comment Share on other sites More sharing options...
Trappeur Posted August 26, 2016 Share Posted August 26, 2016 Wow Moonshine, you sell Christmas Trees! I've always wanted to do that. I'm moving back home to Maine by next year and I was thinking as a side thing I would love to do that.....guess I won't be now...That is too bad and I can understand why. I used to go to a Christmas tree farm and pickout my tree and of course the taller and bigger the tree was, the bigger the price was...But now you can buy gorgeous trees at for example we have Food Lion here and your choice of tree no matter what size it is they are all 29.00 so how can you not buy a tree for that. Well back on the subject....lol. The money you make after taking out all expenses to produce your product is the profit made. And labor is something that goes into the product to make, so you should really be deducting for what you pay someone to make the product or yourself... Trappeur Quote Link to comment Share on other sites More sharing options...
Jcandleattic Posted August 29, 2016 Share Posted August 29, 2016 On 8/25/2016 at 7:14 AM, Trappeur said: Jane, that is very important to figure your labor cost into a candle....something I admit I'm very bad about. What do you figure your worth an hour? I know what I figure myself out to be (and I would say 15.00 to 20.00 an hour) but it is just so hard to incorporate into a candle...but yes I agree we should do that. If that was too personal a question, I apologize... Trappeur Sorry, I'm just now getting to this. I've been out of town and am getting ready to go out of town again for another week, so my forum time has been sporadic. I don't calculate my time to be as much as my day job, but I do try to calculate my time at about $20-$22 an hour. With as little time as I actually spend on the actual making of the product, it's really not that much and it breaks down to nickels and dimes per candle/product. Quote Link to comment Share on other sites More sharing options...
bbeezboutiquecandles Posted May 13, 2021 Share Posted May 13, 2021 my issue is knowing how to forecast my sales? how am i meant to guess how many sales i will make, using online methods to promote and sell. is there any advice or statistics? Quote Link to comment Share on other sites More sharing options...
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