Circle Posted July 12, 2008 Share Posted July 12, 2008 Why is it that whenever you look up candle costings, they never include the labour even though you would have to pay someone else to make the candles if you couldn't. Some don't even include freight which we know is very important in all candle costings. I am just curious:confused: , I know what to include in my costings. Quote Link to comment Share on other sites More sharing options...
Carrie Posted July 12, 2008 Share Posted July 12, 2008 Because they don't know how to correctly calculate cost, IMO. Quote Link to comment Share on other sites More sharing options...
cindym Posted July 12, 2008 Share Posted July 12, 2008 Because they don't know how to correctly calculate cost, IMO.That about sums it up. I include labor in my cost. I also put a buffer in my cost for price increases. Quote Link to comment Share on other sites More sharing options...
flutterbye Posted July 12, 2008 Share Posted July 12, 2008 Because they don't know how to correctly calculate cost, IMO.Ditto! Although when I first started selling, I didn't include my labor because I wanted to keep my prices as low as possible so I could make more sales. But then it catches up to you. I work harder at this than I ever did at my "day job" So I figure in every little cost because I feel my products and my time are well worth it. Making candles, packaging, selling, promoting, paperwork, etc. is really hard work and people should figure in the labor. Quote Link to comment Share on other sites More sharing options...
bugtussle Posted July 12, 2008 Share Posted July 12, 2008 You are only fooling yourself when you don't include labor in your cost. For example, we won't pour a 6 oz tin for less than a dollar each. We include the $ as part of our cost. We also include the overhead (insurance, utilities, r&d, etc.) as part of the cost of each candle. Materials + labor + O/H + a little profit for our company is our formula for determining whlse cost. Carole Quote Link to comment Share on other sites More sharing options...
ebcandles Posted July 12, 2008 Share Posted July 12, 2008 Thats why you see so many chandlers going out of business. Quote Link to comment Share on other sites More sharing options...
Circle Posted July 13, 2008 Author Share Posted July 13, 2008 Thanks everyone. Makes you wonder how candles can be so cheap from China (To our country, we don't have duties) because although they don't pay pittance to the workers, they still have overheads and the freight costs must be quite high???? Makes you wonder what they are making those candles with?? :confused: Quote Link to comment Share on other sites More sharing options...
Stella1952 Posted July 13, 2008 Share Posted July 13, 2008 This issue is not limited to candlemaking - crafters in general do not understand that their labor costs MUST be factored in to their bottom line costs. Many folks don't even know how to figure actual labor costs, which not only include the time it takes to make something, but to order supplies, ship, do inventory, etc. Every minute you spend on your business is part of the labor cost. Quote Link to comment Share on other sites More sharing options...
mizbizzyb Posted July 13, 2008 Share Posted July 13, 2008 This issue is not limited to candlemaking - crafters in general do not understand that their labor costs MUST be factored in to their bottom line costs. Many folks don't even know how to figure actual labor costs, which not only include the time it takes to make something, but to order supplies, ship, do inventory, etc. Every minute you spend on your business is part of the labor cost. Hit it right on the head. Quote Link to comment Share on other sites More sharing options...
Cissy Posted August 18, 2008 Share Posted August 18, 2008 .....and when you're in the candle business, it pretty much takes over your life. Even when you're not actually making candles, keeping up with inventory, doing your bookkeeping, selling, etc. etc. etc. , you are on this board trying to learn more, and constantly thinking about how you can improve this or that, what products you can add to improve your sales. Some of you might know how to turn it on and off, but I haven't figured out how to do that yet. It can burn you out sometimes, even though you don't want to do change to another job. Quote Link to comment Share on other sites More sharing options...
Holly Posted August 18, 2008 Share Posted August 18, 2008 .....and when you're in the candle business, it pretty much takes over your life. Even when you're not actually making candles, keeping up with inventory, doing your bookkeeping, selling, etc. etc. etc. , you are on this board trying to learn more, and constantly thinking about how you can improve this or that, what products you can add to improve your sales. Some of you might know how to turn it on and off, but I haven't figured out how to do that yet. It can burn you out sometimes, even though you don't want to do change to another job.Ditto on all of it! I have trouble finding the off switch as well. :undecided Quote Link to comment Share on other sites More sharing options...
grama Posted August 18, 2008 Share Posted August 18, 2008 My dh would say I don't have an off switch And whats so bad about it is I can't find it either Quote Link to comment Share on other sites More sharing options...
Debra Phelps Posted August 21, 2008 Share Posted August 21, 2008 Ok, I just learned something. I have never added my own labor cost. No wonder I don't make any money. That is going to make my candles really high though. I don't know if this little town can handle that. Wow. I can't beleive that I haven't thought of that. thanks :embarasse Quote Link to comment Share on other sites More sharing options...
debscent Posted August 21, 2008 Share Posted August 21, 2008 Ok, I just learned something. I have never added my own labor cost. No wonder I don't make any money. That is going to make my candles really high though. I don't know if this little town can handle that. Wow. I can't beleive that I haven't thought of that. thanks :embarasseI'm curious on how you did figure costs, if you aren't making any money at all. Quote Link to comment Share on other sites More sharing options...
mizbizzyb Posted August 22, 2008 Share Posted August 22, 2008 Ok, I just learned something. I have never added my own labor cost. No wonder I don't make any money. That is going to make my candles really high though. I don't know if this little town can handle that. Wow. I can't beleive that I haven't thought of that. thanks :embarasseAre you serious! Quote Link to comment Share on other sites More sharing options...
Circle Posted August 22, 2008 Author Share Posted August 22, 2008 .....and when you're in the candle business, it pretty much takes over your life. Even when you're not actually making candles, keeping up with inventory, doing your bookkeeping, selling, etc. etc. etc. , you are on this board trying to learn more, and constantly thinking about how you can improve this or that, what products you can add to improve your sales. Some of you might know how to turn it on and off, but I haven't figured out how to do that yet. It can burn you out sometimes, even though you don't want to do change to another job.I think the saying "Burning the candle at both ends" came from a chandler!! I am always busy with something Quote Link to comment Share on other sites More sharing options...
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