DaisyFairy Posted March 11, 2006 Share Posted March 11, 2006 pay yourself out of a candle sale.. I am confused on this.. i know generally wholesale is 2x cost and retail is 3x... so out of that money how much do you actually pay to yourself? (for both a wholesale sale and a retail sale)I know that the cost of goods has to go back into the business in order to replace supplies used... and some extra to grow the business and cover any taxes, extra costs, expenses... but how much ... I guess I am just wanting to know if there is a general percentage that you take for your pay? or do you figure in your pay to the cost so that you pay yourself a certain amount on all orders.. like hourly or something? any help is GREATLY appreciated... I am not very business savy on this point yet... I really need some classes I think.thanks all! Quote Link to comment Share on other sites More sharing options...
elle110 Posted March 11, 2006 Share Posted March 11, 2006 My labor is already figured into my basic cost before I start figuring wholesale and retail Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted March 11, 2006 Author Share Posted March 11, 2006 ok... so how do you do that? do you say like I am gonna pay myself this much an hour and then multiply by the number of hours and divide by the number of candles made during that time and add that in to cost per candle? then do the times three or two or whatever? and do you count the cooling time or just the actual pouring, melting, wicking packaging time? I know I sound stupid.. but I really don't understand how to do this.thank you so much for your response. Quote Link to comment Share on other sites More sharing options...
AngelaVA Posted March 11, 2006 Share Posted March 11, 2006 I charge 4x for retail and I don't pay myself anything. I put everything back into the business. My business is definitely not my day-job and so I am not looking to pay myself from it. You could do a percentage of each sale. So, factor in a little extra and pay yourself 15% from each sale or something like that. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted March 11, 2006 Share Posted March 11, 2006 If you are going to be in business you cannot think in terms of hourly wages. Hourly wages is something for employees, not business owners. The general rule, as Angela mentioned, is to figure out how much the ingredients cost to make a candle and then multiple that by 3 or 4. That would be your retail price. The difference, after expenses, would be your "pay". Quote Link to comment Share on other sites More sharing options...
NancyJo Posted March 11, 2006 Share Posted March 11, 2006 Not that I am anywhere close to this point yet, I was thinking of something like this:Take out tax amount then divide the balance into thirds with one third going for replacement cost, one third going for expansion of products and the other third is what I keep for myself.But somehow it never works out that way...LOL Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted March 11, 2006 Author Share Posted March 11, 2006 well, that is pretty much what I been thinking... one third to me... but like you it just never seems to work out this way... haha.. I just thought maybe I was doing something wrong.. seems like I work at it a lot and make little. thanks for all the input and response... it helped me to at least know I am thinking right.And this is not a bill paying venture yet anyway.. too small.. but I do have two regular wholesale buyers that order large amounts so I am getting there.. at least it is supporting itself and gives a little extra here and there. I guess that is the main thing. thanks again! Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted March 11, 2006 Author Share Posted March 11, 2006 I just thought... so on a wholesale accout.. they pay 2x cost... so half would be the cost... and then I guess just take the rest and divide it in half? half to grow the business and half to me? does that sound resonable? sorry... haha...I just wanna get paid something for the work and usually works out somehow that I either don't or it is just not that much to warrant the work. thanks again... Quote Link to comment Share on other sites More sharing options...
prairieannie Posted March 11, 2006 Share Posted March 11, 2006 I just thought... so on a wholesale accout.. they pay 2x cost... so half would be the cost... and then I guess just take the rest and divide it in half? half to grow the business and half to me? does that sound resonable? sorry... haha...I just wanna get paid something for the work and usually works out somehow that I either don't or it is just not that much to warrant the work. thanks again...Just like with any business, it's probably not going to seem like the pay is worth the work for awhile... a good LONG while. I wouldn't expect any type of paycheck for a few years at least. Quote Link to comment Share on other sites More sharing options...
Fire and Ice Posted March 12, 2006 Share Posted March 12, 2006 I've been making candles going on six years and I still don't pay myself. all monies that I COULD claim go righ back into the bussiness in the from of show fees, supplies for scent lists that are given out to the customers and research and deveolpment. Have I made a profit? Yup, a small one but even a portion of my paycheck is plowed into the candles. The money can't really be claimed until the end of the year when I look at what I bought VS what I sold. I'm still working on getting more wholesale accounts!. When I inncrease those, I'll be in better shape. But if I had to decide wether to pay myself or increase the business through another show or more R&D, the business wins hands down because I want IT to grow! When I'm working, the paycheck takes care of my bills and puts simple food on the table. But then I don't use any sort of credit either. If I don't have the cash, it don't happen. But I have 0 credit card debt! Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted March 12, 2006 Author Share Posted March 12, 2006 Yeah, I know that is how it is and it has been that way with me... I usually don't get any money at all.. I just sink it back into various supplies and ordering new stuff to try and expand.. testing all those same things... I just thought I MUST be doing something wrong If I was not getting money out of it.. you know.. good to hear others are doing the same.... just starting to get worried and thinking maybe I am not working it right. thank you all for all your help. Quote Link to comment Share on other sites More sharing options...
CraftyChris Posted March 12, 2006 Share Posted March 12, 2006 We match our costs for labour on smaller things, and a bit less on larger items. On mass produced products (votives, jars etc) we do less again. It doesn't take much longer to pour 200 votives than 100 votives (provided you have equipment)So if a pillar costs $2 in material, then add 50%-100% for labour (depending on what-if your simply pouring-then 50%-if your layering, or caking or embelishing after, or it's a photo hurricane then more.*So $2 + $1labour =$3 x2 wholesale x4 retailWhen your just starting out, you may not be able add in the labour yet.HTH Quote Link to comment Share on other sites More sharing options...
DaisyFairy Posted March 12, 2006 Author Share Posted March 12, 2006 Thank you chris... that sounds like a good system. I was wondering how to figure in the cost of labor and still not run up the price to much and this sounds great! thanks for your input! Quote Link to comment Share on other sites More sharing options...
elle110 Posted March 13, 2006 Share Posted March 13, 2006 Even if you don't pay yourself you have to figure labor in, someday you may have to pay someone to do the work, you don't want to raise your prices because you have an employee now. Your profits etc can still go back into the biz but I think it is smart to have labor amounts calculated, time yourself on how long it takes to make certain products and then figure that into your beginning amount, than I start figuring out retail and wholesale. Quote Link to comment Share on other sites More sharing options...
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