Pricing candles

[Wasabi]

Thanks for all the great advise so far! Can someone give me some help on pricing my 6oz and 8oz soy candles in tins for retail as well as wholesale?

[OverSoyed]

It depends on your local market, your packaging, and a lot of other factors.

But typically, wholesale is 2-3 times your cost. Retail 3-4 times your cost.

HTH

Tristan

[msmeredith]

Are you seriously considering selling and you just started making candles? You just asked a couple questions about what temp to add fragrance oils and so forth. I think you may be moving too fast.

Meredith

[OverSoyed]

Damn... I didn't realize it was a newb! :rolleyes2

RESEARCH, TEST, RESEARCH, TEST, TEST, TEST, TEST, TEST

Then worry about pricing! :tiptoe::tiptoe:

[Wasabi]

I'm moving fast that's for sure. I'm learning fast thanks to all ya'lls help.Everything is going well except the HT is not very strong.

[Jokerjen]

Seriously, you have only made 6 posts, new to candles and still asking all sorts of questions. You are no where near ready to start selling or starting a business. Not trying to be rude, just honest. And you will get the same answer from everyone here.

[Stella1952]

Ummmm.... what everybody else said. Let's see if you can make a quality candle. Then let's see if you can do it over and over again before we start talking about selling.

[OverSoyed]

:pStella to the rescue!

[wilsonswix]

Nothing stops you from researching prices and costs while you're doing your testing. It's always good to get a spreadsheet going and keep updating when you find something that doesn't work. It also lets you know what kind of quantities you'll have to buy in to eventually make a profit.

If you're getting into a business it's always smart to research what it's going to cost you to get it going, and keep it going and ideas on how you can expand. I've had a spreadsheet showing costs/profit/wholesale - retail from day one. It is absolutely the first thing I did, before I ever touched any wax & FO. It was my jumping off point to see if it could be done.

That same spreadsheet I use to keep track of cost per candle and it helps me figure when to raise prices based on price increases of supplies. It also let me know that I couldn't have too many super-duper expensive FO's and that I needed to stick with glass/wax within driving distance.

I believe it is very important to find out what the market in your area will support if your plan is to make this a business. To find out that votives in your area don't sell for crap will help you target another product. So, finding out what things sell for and doing other sales related research is important, and you certainly should be doing it now. Just make sure you include some money in your budget for testing.

By the way, this board bashes newbs who don't use the search feature... use it often and make it your friend. LOL

[OverSoyed]

By the way, this board bashes newbs who don't use the search feature... use it often and make it your friend. LOL

NO WAY! We never bash... just redirect firmly!

[Stella1952]

By the way, this board bashes newbs who don't use the search feature... use it often and make it your friend.

Not the whole board - just crusty ol' broads like me. While I think it's wise to consider MANY things right from the get-go, worrying about pricing items when one hasn't made a successful product yet IS getting the cart before the horse. In the meantime, in the excitement of getting into a new craft (perhaps profession), one can use the search tool to find answers to business questions like pricing, container choices and sources, quantity discounts, percentages, spread sheets, etc. CT is chock FULL of resources for the finding.

[OverSoyed]

You aren't crusty... you are.... saucy!

[Wasabi]

Thanks for your advise.I'm doing all the research daily.I hope I don't run into some of the other candlemakers in a dark alley somewhere.

[Jokerjen]

The only thing we are trying to make VERY CLEAR is that it takes a great deal of time, research and money to make a quality candle. It scares us when people new to candlemaking are already talking about selling and starting a business. Some people don't do their research and testing and wind up making a poor quality candle as well as a potential fire hazard and it gives the rest of us who have put in our time, blood , sweat and tears into it a bad name.

It's by no means a get rich quick kind of business, you will literally spend thousands of dollars just in the testing phase.

[Jokerjen]

You aren't crusty... you are.... saucy!

Saucy Stella .... I like it!lol

[Stella1952]

You aren't crusty... you are.... saucy!

Dang! I just hope I don't get SOGGY!!

It's okay... No need to worry about dark alleys... those are reserved for bankers and politicians and that ilk...

Sometimes the remarks folks make MAY seem harsh to noobs, but I'll always buy ya a beverage after the flogging. There aren't too many of us who haven't been taken to task about something we've written at some time... after a few beverages, we can all compare our forum scars!

Being new to a craft IS exciting, interesting, addicting.... AND a whole lotta work, time and money$$$! There's no reason that one can't enjoy all aspects and have fun along the way.

[Jokerjen]

Dang! I just hope I don't get SOGGY!!

Well, now we don't want a soggy Stella! That just wouldn't do..for a minute I had thought you wrote "saggy".lol

[Howard]

Let's say your profit is equal to your costs.

You want to make $20,000 a year. That means you must sell $40,000 in candles. Your cost of materials are $20,000.

You can make an 8oz. soy for between $2 - $2.50, Let's say $2.50 and you sell them for $5.00 each. (I know that is probably low but after looking at some wholesale prices on the web as low ast $2.50/8oz. candle a reasonable average gross sales price including marketing etc. is $5.00.

That means you must make, and sell, 8,000 candles a year or 667 candles a month or 153 candles per week or 22 candles a day. Seems reasonable, or is it?

You don't work 365 days a year. You must work in your selling time and some time off to enjoy your profits!

Working a reasonable 44 work weeks (8 weeks off because you will be working craft shows and fairs on weekends), making candles 4 hours a day Monday thru Friday you would need to make 8,000 candles in 880 hours. 44 weeks X 5 days X 4 hours = 880 hours

That means to produce 8,000 candles you must be able to produce about 10 80z. candles per hour or 40 candles per day.

I can make 16 candles an hour right now. (my times are 20min. wax heat up and prepare containers, add FO, 20min. wax cool down, 20 min labeling etc.)

But this assumes that you will sell all you make and that is not going to happen.

Now, for a true almost liveable profit everything must double and that also means your marketing time must double so your production time must be cut in half. That means you need to make 160 candles per day or 40 candles per hour. And you probably need to make 50% more because not all your candles will sell so you need to make 60 candles per hour.

So you need to be able to melt 30 pounds of wax per hour to make 60 candles per hour.

Now, you can't do that in a kitchen. You also can't prepare that many containers per hour, and FO, and pour...without help and a work area, and a product storage area and a supply area and an office area and shipping area, and don't forget transportation and display setups, and event fees and a bunch of stuff I know I have not thought of.

Oh don't for get the "help" you are going to need. That costs money so it takes your profit down and increases your accounting time.

So, a TRULY candlemaking business is out of the question unless you can make and sell 8,000 to 10,000+ candles a year.

It takes me about an hour to set up to make candles in the kitchen and an hour to clean up. So right now for me I want to only devote 4 hours a week to candeling. That means I can actually make candles for 2 hours a week making 16 candles. I won't do it every weekend. Maybe 12 times a year. That allows me to make 192 candles a year. I need 30 customers that would buy 6 candles a year to sell 180 candles. (I will burn or give a way at least 12 myself.)

Not going to get rich with a $450 profit per year. It just pays for my addiction... and I never again need to buy a store bought candle.

[Judy, USMC]

Everything is going well except the HT is not very strong.

That is a problem. People buy scented candles because they enjoy the hot and cold throw. So the problem could be the wax, or the Fragrance oil, or maybe the wick. That's what needs to be worked on.

If you start selling before you develop a quality candle you will gain a reputation ... "Her candles smell great in the jar BUT can't smell 'em when they are burning." Once you get your quality candle perfected you will already have lost customers because they bought your earlier production.

Best to get things "right" and that takes time not to mention money.

[ChrisR]

You also should have good product liability insurance in place, if not, you better get your butt in gear and get it pronto!!

[LuminousBoutique]

You also should have good product liability insurance in place, if not, you better get your butt in gear and get it pronto!!

out of everything said this I think is the most important

This is a hobby you want to make into a business.. thats awesome, thats what we all should look for in life! BUT...Personally? I dont make a profit, its almost impossible to make a profit right away! never have, probably wont for a very long time. selling supports my candle and soap habit, and it keeps me happy. It gives me something to do other than just be a stay at home mom. Some years I dont even do any shows, last year I only did one! And insurance isnt cheap. You'll pay between $200-1000 a year. That being said, no matter how many or how few candles I sell, I ALWAYS have insurance in place.

Why? Because Average Joe can take your candle home, set it on a stack of papers, let his cat tip it over, and set fire to his house. your fault? not really. But guess who gets sued over it? YOU. Average Joe could forget (or not know) to trim the wick and set a potential candle flamethrower on his antique furniture, drip some wax, shatter the container, smoke up his curtains... whatever. Doesnt matter. You are liable for any and all of it if Average Joe has the right lawyer.

Same goes for soap making. Someone could be allergic to an ingredient or fragrance in my soaps, and sue me.. despite all warning labels and testing recommendations I give. It doesn’t matter if I suggest they test the frag before using it or how many times we label to keep it away from eyes.. if they burn their eyes, they can still attempt to sue me.

I am thousands of dollars, and hundreds of test candles into it and I've only found one container (the square mason) one wick combo, and 20 scents I am confident selling as of yet. Thats after HUNDREDS of test candles/scents/jars. When I see people at shows selling poorly tested candles, who know very little about their craft and are simply selling them to make money... yes, it makes me a bit grumpy! Because that DOES reflect on all of us. People remember that one time they bought a soy handmade candle and it wasnt "strong enough, big enough, burn long enough... and so on.." and they dont remember who sold it all the time, but it stops them from coming back for more handmade candles. They think... why not just buy one at Wamart, Hobby Lobby, or Yankee?

I dont (and I know nobody else) say any of this to be harsh.. we all help eachother out here, I've asked stupid questions.. we all have. I've asked questions that you could easily find the answer to (Thankfully Stella was SUPER helpful when I first joined and showed me how to properly use the search feature! thanks Stella!) But part of helping eachother out is being honest... You can easily get in over your head, waste epic amounts of time and money, and ruin your reputation as a candle maker all at once.

Now. This is all just our word and you dont have to take it.. but the true success of business is repeat customers and nobody is going to return to buy a candle they werent satisfied with. And I agree its OK to figure out pricing before you are ready to sell...

my formula is pretty simple... supplies x3. And adjust for market conditions. Sometimes I'm willing to sell for less to sell more, or sell for more to sell less depending on who the clientele is. (for example some boutiques you can get away with charging WAAAAAY more per candle than at a craft show)

so example being (total example not based on any real numbers)... per candle: jar 1.00, wax .50, scent 1.00, wick .10... I would charge 7.80 at least for that candle. You also need to consider labels, time, packaging, effort, testing, travel (if its a show), and competition.

I wish you all the luck in the world, keep working at it, have fun with it.. but dont rush yourself. All I wanted to do when I started out was sell sell sell but looking back now I see how dangerous that could have been. Dont give up.. dont think anyone here is being mean.. I'm just doing my absolute best to make sure you are informed.