When running a business one possible option for producing new products is outsourcing the production of those products. Outsourcing has become all too common in many of our major manufacturing industries in the United States today due to it allowing you to increase profit margins, save on labor costs and maintain lower prices. Can you outsource candle making?
You can outsource candle making. Outsourcing candle making is also called “private labeling”. Private labeling is when you hire a manufacturer to make candles for you, and then you simply add your own label as if it was produced by you. There are several popular candle manufacturers that will do this.
In addition, some of these private label candle manufacturers will ship your candles directly to Amazon so that you can participate in Amazon FBA and sell your candles on Amazon.com. However, before committing to outsourcing your candle production you should order test candles to screen for quality.
Advantages and Disadvantages Of Outsourcing Candle Making
Let’s take a look at some of the positives and negatives when it comes to outsourcing your candle making.
Advantages Of Outsourcing Candle Making
- Reduced costs
- More time to focus on the business
Outsourcing candle making for your business can actually reduce your costs. Purchasing and ordering candle supplies operates very much on a wholesale model. The more you order, the bigger discount you get. Odds are a facility that only produces candles full time will get a better discount than you will ever get.
This brings their wholesale private label candles more in line with what your pure production costs would be. In addition, they will be more efficient at making them which can save money on labor and overhead per unit.
A white label candle manufacturing facility will be able to produce the candles faster than you can ever do it at home. They are set up with industrial wax melters, multiple cooling racks, and large and well-equipped workstations.
These setups are far more efficient than whatever you can set up in your home kitchen.
One major benefit to outsourcing is simply convenience. If you pay someone to do something that might cost just as much for you to do, but you get the inventory without the headache, stress, and risks. That is a huge convenience and goes a long way to simplify your business.
More Time To Focus On The Business
If you run a diverse business with several different products then getting some of them manufactured by someone else is going to save you a lot of time. It will give you more time to focus on the management and marketing of your business, rather than toiling away making products.
Disadvantages Of Outsourcing Candle Making
- Quality issues
- Loss of control
- Hidden costs
- Customer backlash
No one is going to care more about the quality of your products than you do. The truth is if you outsource the production of your candles the person that makes them probably is not going to put the love and care into making them that you would.
This can lead to quality issues or more candles with what might be considered minor flaws making their way to customers than would have if you were the one making them the entire time.
Loss Of Control
When you are depending on someone else to produce products for your business you lose control of some aspects of the process. You lose control of what the quality will be. You lose control of the timeline the candles will be produced. You are at the mercy of the shipping company bringing you those products.
While outsourcing is generally considered a cost-saving measure, it can come with hidden costs. A large manufacturer might require you to commit to certain size orders or include some fine print in the contract designed to get more money out of you down the line. This is business, be aware that not everyone is on the up and up.
If outsourcing your candle making comes with any drop in quality, restocking issues, or delays in shipping then be prepared for some possible customer backlash.
If your customers are already used to a certain degree of quality or customer service then suddenly changing over to a private label product might come as a surprise to some of your customers.
Cost Of Outsourcing Candle Making
Let’s take a look at what you can expect to pay for some private-label candles.
How Much Does It Cost To Outsource Candle Making?
If you outsource candle making to a private label producer you can expect to pay $4.40 for an 8 oz jelly, $4.75 for an 8 oz mason, $5.40 for a 12 oz mason, and $6.00 for a 16 oz mason jar candle. The prices vary depending on the size of your order and the wax and fragrance oil being used in the candles.
Those prices are for a private label producer of soy wax candles located in the United States. You may be able to beat those prices importing candles from China, however, it is unlikely you will get soy candles from China for those prices.
The majority of candles that you can outsource from China will come with paraffin wax, which is a petroleum byproduct. Soy candles are hard to source from China because they get the majority of their soy from the United States.
Related Questions About Outsourcing Candle Making
How To Save Money When Private Labeling Candles?
Save money when private labeling candles by ordering in bulk. Not only will this generally get you per-unit savings on the candles you order, but it will also save you money on the shipping for your candles. You can save even more money if you live close enough to pick them up yourself.
What Is The Minimum Number Of Candles I Can Order Private Label?
Most manufacturers do not have a minimum number of candles you can private label. However, to get the biggest discount your order should be at least for 500 candles. With that said, I would make a test order for about a dozen assorted candles for quality inspection first.
What Should I Charge For Private Label Candles?
Charge three times whatever your purchase price was. If you ordered outsourced candles for $4 each then list those candles for a retail price of $12. Keep in mind that even after you buy the candles for $4 you still need to label and insure them which costs money.
In conclusion, outsourcing candle making to a private label manufacturer comes with its own benefits and drawbacks. However, under the right circumstances, it can be the right thing to do for your company.
Personally, outsourcing is only something I would consider if I had a brand that consisted of several different types of products. If you are successfully selling soap, candles, lip balm, creams, and lotion, then it may be time for you to start looking for quality private label partners before you become spread too thin.
At a certain point in the growth of your business, it becomes more important for you to focus on the growth, development, and management of the business than it does the production of products. At that time is when you need to consider hiring employees to make the products or simply outsourcing them.