Business - Candleers

Candle making is a good hobby but it can also be a good business. There are a variety of factors that go into how good of a business it can be. The profitability of candle making is dependent on how many candles you can make at once. Economies of scale will dictate your profit margins. How much does it cost to make a candle? It costs between $2.00 and $5.00 to make a candle depending on the size ranging from a 4 oz candle to a 16 oz candle. The price is also dependent on the type of container being used and the type of fragrance oil being used. Certain fragrance oils and essential oils can be very expensive. If you are making a candle in a fancy glass ornate container then obviously it will cost more. However, I like my candles in tins. In addition, you can make a massive 3 wick candle in a glass dish that will really increase your costs. The most important factor in candle making is buying wholesale. If you can buy your candle-making supplies wholesale you can drastically reduce your prices. Let's do a price comparison. Breaking Down The Costs Cost of simple 8 oz tin Cost Of Making 8 oz tin Candles Based On Volume 5lbs Wax$13.3250lbs Wax$72.0010 Containers$9.60100 Containers$87.0010 Wicks$.70100 Wicks$5.005oz Fragrance Oil$13.2550oz Fragrance Oil$60.0010 Total Candles$3.69 Each100 Total Candles$2.24 EachTotal Cost$36.87Total Cost$224.00 This table was made using small batch prices vs wholesale prices from a popular candle supply wholesaler. As you can see, the larger batch you make at once the more money you make. However, these calculations did not include shipping. If you are interested in starting a candle business take a look at my article titled How To Sell Candles. The price of making candles can be pushed down even further depending on how large of an order for supplies you are willing to make. In addition, the price can increase drastically if you are trying to make a candle in a more expensive glass container with a more expensive blend of wax or fragrance oil. Cost of premium 16 oz glass Cost Of Making 16 oz Premium Glass Candle Based On Volume 8lbs Wax$21.9280lbs Wax$118.4010 Containers$34.90100 Containers$299.0010 Wicks$.70100 Wicks$5.008 oz Fragrance Oil$30.0080 oz Fragrance Oil$93.0010 Total Candles$8.75 Each100 Total Candles$5.15 EachTotal Cost$87.57Total Cost$515.40 As you can see the type of container, wax and fragrance oil you use can drastically change your price point when making candles. These changes also highlight the importance of buying your materials wholesale when making candles. However, even on the low end of the production volume with prices near $9.00 per candle, you are still only paying a fraction of the price that same candle would cost you at an upscale retailer. Remember when you purchase a candle from a retailer the candle maker and the retailer both must make a profit. Generally, each one of them wants to double their money, if not more. So candle making is a good hobby to get into just so you no longer have to pay retail prices for your candles. The plus side is that you can also start giving out your hand-crafted homemade candles to your friends and family for the holidays. Overall Candle Making Costs These prices are based on estimates from candle supplies from candlescience.com and do not include shipping or labeling. These prices can be reduced by ordering bulk supplies. How much does it cost to make a 2 oz candle? It costs approximately $1.00 to make a 2 oz candle tin. How much does it cost to make a 4 oz candle? It costs approximately $2.00 to make a 4 oz candle tin. How much does it cost to make a 6 oz candle? It costs approximately $2.50 to make a 6 oz candle tin. How much does it cost to make an 8 oz candle? It costs approximately $3.00 to make an 8 oz candle tin. How much does it cost to make a 12 oz candle? It costs approximately $4.00 to make a 12 oz candle tin. How much does it cost to make a 14 oz candle? It costs approximately $4.50 to make a 14 oz candle tin. How much does it cost to make a 16 oz candle? It costs approximately $5.00 to make a 16 oz candle tin. If you shoose to use ornate glass or jars rather than tins, the price per candle can go up as much as $2-$3 per candle. The cost of labeling candles can increase the price by as much as $1.00 per candle. In addition, the cost of shipping and labor should be factored in when establishing a market price for your candles. Candle Price Factors Materials This will be your largest expense. If you visit a site such as CandleScience you will see how the prices drop as you make larger orders. You do not want to put yourself in a difficult financial situation, but try to order wholesale and get the best discount that you can. The part that will really drive up your costs is the container you choose. If you do not see any good choices for containers online you can always go to Home Depot, Rural King or whatever option you have locally and purchase mason jars. Mason jars are affordable, make great containers, and are useful once the candle is gone. Labor Working for yourself you have a lot of leeway in how you want to handle this. My advice would be to add a fixed cost per candle that is designated for your wages and leave the rest of the profit for your growing business. This will also be a benefit to you later if you decide to hire someone to help you with your business. If you have a fixed cost allocated to wages and you have someone come over and help you two days a week. Let's say you make candles two days per week, 100 candles each day. At an added fee of $1.50 per candle on the cost of goods sold that is $300.00. Which should be enough to help fund a part-time employee or convince a family member to work with you. Overhead Do you use your home as an office space? Use your electricity and internet to conduct business? Rent a storage unit to keep all of your candles? All of these should be factored into the cost of goods sold at some point. A portion of these expenses also become a tax deduction, talk to an accountant about how much of these expenses you can deduct on your taxes. Packaging The package is pretty inexpensive as long as you are not trying to use fancy printed boxes. You can find boxes with Uline for as little as $.30 each. Like the wax, fragrance oil and containers you can save a lot by ordering your packaging in bulk. However, if you are trying to work with local retailers on a wholesale or consignment deal packaging might not be necessary. Shipping Shipping is the other major expense. If you do cubic shipping you can charge a flat rate of $10 for anywhere in the lower 48 states and it will be covered. If you are making candles too large for that then I would charge the customer directly for shipping. You can see more in my article titled How To Ship Candles. Frequently Asked Questions What candles are most expensive to make? Candles in ornate glass containers using pure essential oils will be the most expensive to make. Some glass containers can cost $3-$4 each and some fragrance oils can cost as much as $15 per ounce. The combination of these factors can make some candles expensive to make. How to lower the cost of making candles? Lower the cost of making candles by buying supplies in bulk from wholesale candle suppliers. The more supplies you buy at once the better price you get on those supplies, and the fewer fees you pay for shipping. In addition, you get to make more candles at once. How to lower the cost of making candles? Lower the cost of making candles by buying supplies in bulk from wholesale candle suppliers. The more supplies you buy at once the better price you get on those supplies, and the fewer fees you pay for shipping. In addition, you get to make more candles at once. Conclusion In conclusion, prices vary depending on what type of candle you are making and how many you are making at once. However, the good news is that even when making small batches you can still beat the price of upscale retailers. If you are just making them for fun and to give them out as gifts then you can rest easy knowing candles generally have a shelf life of two years. So if you wanted to get into candle making mid-summer then whatever candles you made would still be good to hand out as gifts for the holidays. Whether if this is a business or a hobby you are thinking seriously about doing then remember when you have your formulas worked out and have tested all of your candles and fragrances. Then wholesale orders are the only way to make a real profit and save money. Economies of scale is a saving in cost gained by an increase in production. That describes the candle business perfectly. If you found this article helpful then consider sharing it on Pinterest.