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Avoid Margin Drain in Candle Making (Part 2)

by Chandler 10. March 2010 00:11

In this entry, we are going to highlight the remaining four tips highlighting area's that could become a margin drain without careful examination so that you are sure to maximize your income.

Set the Right Sales Price
Setting the proper price for your candle might be one of the most difficult tasks in candle making.  There are many issues which must be considered.   Naturally we would all like to sell at the highest price but your target audience might not be willing to pay that price.  On the other side there are consumers who feel if you sell the candle too inexpensively there is something wrong with the product.  For initial guidance on developing your prices be sure to check out our June 2007 Englightner.   Some important considerations must be what is your competitor selling the product for?  What is the target audience that your candles are being sold in?  Can you offer some products at a lower margin in hopes that they buy the higher priced items to go along with their candle purchase.   Depending on the market you are selling at you can also run “specials” in that people like to feel like that are getting value in the product.   

Save on Shipping Products
It is always best to try and minimize the number of shipments you make especially when it comes to ordering wax.   Shipping one case each week is much more expensive then 4 cases at one time. Combining additional fragrances you may need later can result in substantial savings.   Also when you can ship by common carrier be sure to “load” as much as possible on the skid.  Many carriers charge flat rates for a skid so the rate is the same if you shipped 500 pounds or 2,000.  Be sure you have all of your products shipped together if you using a common carrier.  

Use Everything
It seems no matter how you do things you will end up with something extra in wax, fragrance and even color. Use your extra wax to make tea lights, fire starters or even tarts. If you have just a little bit of fragrance maybe have a bottle that you start collecting the fragrance.  Have one for all of your florals that you can then call bouquet of flowers. For home baked goods maybe call it Granny’s Kitchen.  Do not discard any of your extra raw materials. They all have some value when put into a finished good. Even if you possibly cannot sell giving them out will get you the attention of someone.

Vendors can be a Resource
Quality companies offer services to their customers that can have value. Make sure you use them. If you have a new candle requiring a different wick check to see if you can get a sample (Sorry for the self promotion but could not resist). Candlewic has always provided free wick samples. Rather than just purchasing books, check out the other resources a vendor has to see if there is sufficient information without having to invest in that book. Be sure to take advantage of promotions of the products you use.   

Since the summer months are a bit slower the summer months are always a great time to review all of your cost and make sure you have kept up with current prices of products and that you review everything to make sure you are doing everything in the most cost effective manner possible.

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Categories: Business Articles | Candle Busines | Candle Making (General)


About the author

Hi I'm Chandler. Thanks for visiting! Illumine is all about helpful projects, ideas, and articles related to candle and soap making and the candle and soap making business.




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The Candlewic Company

Supplies the candle making industry with candle making kits, molds and accessories including candle wax, gel, and wicks.

3765 Old Easton Road
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Fax: 215-230-3606

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