Hello there everyone! I’m back.
I know it’s been awhile since I’ve posted, but you know, life get’s busy, especially as a work at home mom of 3 crazy boys! So
I had this question posed to me as I was thinking about what to write about next on here. There are so many topics to cover and questions to answer when you’re talking about making soy candles, or starting a candle business that it’s hard to know what to address next. So here we go!
How To Price Soy Candles
Pricing your soy candles isn’t too difficult if you know the general formula, but it can take some time and math to figure up exactly how much each candle is costing you in order to determine how much to sell them for so that you can make a profit and ensure that your time and effort in making them, is being paid for.
Many times, and myself included, we think that we need to compete with other soy candle companies and in order to do that , we reason, is to make sure our price is lower than theirs. Well, I’m here to tell ya, that’s not a good way to do business in reality. I know from experience, that it takes time and money to make soy candles and I tried pricing my candles at what I thought was a “reasonable price” and It didn’t end up paying for my time and effort that I put into making the candles and preparing them for packaging and shipping and all the work that goes into it.
People Will Pay The Price For Quality Soy Candles
They will! Believe it or not, and that is why you see some of the bigger name soy candle companies out there still in business and seemingly doing well! I know, I know, I’ve looked at the competition and my jaw dropped at some of the prices, but once I really dug into the business of soy candle making, I understood why they charge so much. Your business has to be able to pay you, or you won’t stick with it. You’ll get discouraged and give up because at the end of the day (or year) you find that you only made enough to cover your cost and some expenses including the extra on the electric bill that comes with using the stove so much……(didn’t think about that one did you? 😉
So you have to realize that there is a reason these other companies are able to grow their customer base while having seemingly high prices (if compared to regular candles anyway). It’s because people LOVE their candles and keep coming back for more. It’s worth it to those people. And it is. I mean don’t you have certain candle fragrances that you just LOVE and maybe only one or two companies carry that fragrance? Candles are addictive, and if you have a quality product and maybe a few unique fragrances, people will buy them even if you think you’re charging too much….which you aren’t when you consider all the costs of soy candle making.
How To Find the Cost of Each Soy Candle
We are going to use a soy jar candle for this example and I’m going to list each and every item used in making soy jar candles so you know what you need to figure out how much each candle is costing you.
8oz Soy Jar Candle Breakdown:
- 8oz of soy container wax (Find cost for 1oz x 8)
- Jar (usually you buy these by the dozen, so cost per dozen divided by 12= cost per jar)
- Candle Wick (Divide cost per package of wicks by amount of wicks, example: $3 for package of 10 wicks= $3/10= $.30 per wick)
- Fragrance Oil (1lb of fragrance oil is approx. $16+ so that’s $1 per oz, with 1/2oz per 8oz candle = $.50 per 8oz candle)
- Dye (I used liquid dye with a dropper, and the company I bought it from actually gave a number on their website of aprox how many drops a container, so I was able to figure up the cost per drop, but you may need to just use a scale and figure up how much a few drops weigh and go from there)
- Wick Stickers (just divide the cost per package by the amount in the package like we did with the wicks)
- Lids (find the cost of each individual lid)
- Ribbon or other decorative items (Just measure how much you use. Take the total length of the spool of ribbon divided by the length you use for a candle=amount per spool, and then take the cost per spool divided by the amount per spool= cost per candle
- Tags and warning labels (Same as wicks and wick stickers, just divide cost per package by the amount per package(or roll)
So that’s your cost per candle as far as supplies go.
How Much Are YOU Getting Paid For Your Time?
Now you need to figure out how long it takes you to make a batch of candles so you can decide how much it’s going to cost you per hour (how much you’d like to get paid!). Now obviously it will be much better for you to be able to make larger batches of candles at one time than to only make candles to order. So you have to decide, are you willing to take the extra time to many times only make one candle at a time because someone only ordered one candle or 6 candles, each a different fragrance? Or would you rather make batches at a time and have them already stocked in order to save you time and money? (remember that electric bill?) It’s something to seriously consider before you jump into business.
So I’m going to stop there for tonight, but I’ll try and finish up part 2 tomorrow.
I really hope this helps you out, and as always, please ask any questions you may have and I’ll try to answer them as best I can!