So in part 1 of learning how to price soy candles I covered how to find your base cost for each candle and the option to find out approx. how long it takes you to make the candles so you can figure out how much you want to earn per hour. Once you figure out approx. how long it takes you to make one candle (or a batch of candles, depending on how you want to do it), then take your chosen hourly rate…let’s say $8 per hour. So if it takes 20 min. to make 1 8oz candle (counting in the heating and cooling time before pouring) then divide $8 by 3 and it would be $2.66 per candle. Now of course if you can do batches of say, 6 candles in 30 min. then that would only be $.63 per candle, so much better to do batches if you can.
How Do I Find Out My Retail Price
Ok so now to find out what to charge for retail sales of your soy candles. The general rule is “Your cost” x 3 or 4= retail price. Plus if you want to factor in your hourly rate, just use the formula above and add it to the retail price per candle.
So here’s a formula for the retail price of an 8oz soy jar candle:
Base cost: $2.50
Hourly rate per candle $2.66 (making one candle at a time) or $.63 (making batches of 6 at a time)
$2.50 x 3 = $7.50 + $.63= $8.13 (we’ll round it to $8.15 )
$2.50 x 3 = $7.50 + $2.66 = $10.16 (we’ll round this to $10.15 or maybe even just $10 even)
So there’s a nice formula for you to use, but you will need to figure out your own base cost since costs for candle supplies will vary depending on where you purchase your supplies.
Other costs to consider that go along with a soy candle business are:
- Shipping supplies (you might want to somehow figure this into your retail price of your candles too. So if you will be specially packaging any of your candles, make sure to break down the packaging costs too. Usually it is best just to use flat rate priority mail boxes from USPS if you can, and you’ll probably get a good amount of packing peanuts and other packing stuff with your candle supply orders so then you can just reuse them when you ship out candles! I almost never had to buy packing material for shipping because of this!
- Higher electricity costs because of using the stove more.
- Cost of gas if you are driving to shows or events.
- Shipping costs when buying soy candle making supplies.
- Website Hosting
- Website Shopping cart costs
Well, I think that’s about it! You’re on your way now to getting your soy candle business up and running! It is exciting, but remember, it is also a lot of hard work.
Please feel free to post your questions in the comments section and I’ll do my best to answer them! Or you can contact me by email.
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