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The En-Light-ener
Candle Making Newsletter
 
 

How to Set Candle Prices

It is always interesting to hear how people get started in the candle business for some it starts as a hobby and grows into a home based business and then continue to grow the operation until it becomes a self sustaining operation. (See Candlewic History). For others they start with an investment of some type with the full intention of growing the business into successful operation and others may have acquired an existing candle company.

No matter how you started or operate the business without the doubt one of the most important keys to the success of your business is what price you sell your candles for. Many would think this should be an easy formula, but with many factors to consider it is actually a very difficult process and every company/individual will arrive at there selling price for different reasons. The purpose of this article is to help identify the general price range and which markets to consider. No doubt, there are always exceptions and unique circumstances that will have an impact on these guidelines. With the current Economic situation your pricing strategy will be more important then ever.

The first question that needs to be answered is: How will you be selling your product?

  • retail store
  • craft shows
  • consignment store
  • wholesale
  • other

Each of these distribution channels dictates a generally accepted margin level.

A general guide to follow is: The closer you are to selling the consumer, the higher the margin you should attempt to achieve.

The closer you are to selling the consumer, the higher the margin you should attempt to achieve.

There are several reasons this logic prevails. The first reason is that you are taking most of the supply chain cost out of the equation, which allows you to make that money. The second reason is that you will have to handle more single transactions, which drives up your cost and time involved. Instead of selling 25, 50 or 100 candles at a time and sending 1 Invoice you may have to handle each of the transactions individually.

In most instances, in order to make it work, you need a minimum of a 40 percent margin with a maximum, depending on competition, up to possibly 60 percent.

Again, this is ideal but subject to many other factors. One that comes to mind is if you use candles to get people to your store or booth, and they purchase candle holders or accessories, maybe that percentage can be smaller.

The next selling venue to consider would be wholesale. In this selling mode, you produce the candles and sell to another entity that will market the product to the consumer. This allows you to focus on producing a good product and building your brand image and product development. The retailer/website then will sell your product.

Trade shows, trade publications and mailers to the potential customers is a great way to introduce your product. Starting with your local stores is always a great way to get started. You can deliver the product, thus saving shipping cost for the retailer, even manage the inventory and consider some joint advertising. The expected margin selling in this area will truly depend on how you wish to run your business. If you have low overhead and wish to try and get new customers quickly with price, maybe you only have a 33 percent. This is very low and you must really have a control on your cost to do this margin level. However, it is important not to sell them too low because of the many unknowns, i.e. production errors, sudden price increases and lost accounts.

The last selling venue is what we call a hybrid. There are several selling categories I would include in this one, since by definition they may not be a retailer or a distributor. The first one is fundraising, which is a very successful venue for candles. This would be where you produce the candles and have an organization selling your product to help raise funds for their purpose. Unlike wholesale, after the consumer purchases and likes your product, you can start to sell direct to the consumers that purchased candles as part of the fundraiser. Maybe even offer the organization a small commission on repeat orders.

Most times a 40-60 percent margin gives room for both the candle manufacturer and the group to make money at their event.
If you recall, earlier in this article we used the term preliminary cost because from time to time you may have to move off that pricing. If a large enough order comes in, you might want to give further discounts.

Without doubt, one of the most important things to consider when developing your cost is what the competition is doing. The important distinction in this process is to determine what truly constitutes a competitor. In most instances, the candles being sold in grocery stores are not always a competitor because the candle could be of a different quality. The brand name candle company may not be a competitor, because they have the ability to charge more for the name. You need to determine your target market and review the pricing of the candles being sold to those markets.

Once you have your pricing established be sure to review often, raw material pricing changes, your operating cost may increase/decrease or your competition might be doing something which is taking away sales. There have been recent articles that almost anything is open for negotiating be prepared to know what the very minimum you will want to sell your candle

Hi! I'm Chandler!
I can help you
learn how to make candles.

CHANDLER'S CORNER

I selected my fragrance and now wish to purchase dye to color my candles. I see you have it in Blocks, Liquid and Powder. How do I know which one to use?

Any of these forms of dye will work in candle making and it really depends on what size batches of candles you are making. Without doubt powdered dye will always be the most cost effective but at the same time they are extremely concentrated and virtually impossible to match colors in 4 pound batches. Powdered dyes are best suited when mixing in 100 + batches. The liquid dyes aren’t quite as concentrated as the powdered and a little easier to work with. By far the easiest to work with are the blocks, but they are not as concentrated. As you make larger batches the cost is more then the other forms.

 


July 2009

Featured Project:
All Natural Beeswax Garden Flare Candle

Soy Wax

Materials Needed

- 8 Sheets All Natural Beeswax
- 10' Cotton Wick
- Dowel/bamboo
- Aluminum foil

Step 1
Lay wick across the edge of the wax sheet. Position wick extending 1/2" (one-half) past the top and 3" from the bottom of the wax. Roll the edge of the wax over wick once, just far enough to cover the wick.

Step 2
Wrap piece of aluminum foil around the very tip of the dowel or bamboo (to prevent the wood from
burning).

Step 3
Lay 3" of dowel/bamboo beside the first wrap of wax as prepared in Step 1.

Step 4
Heat well so the wax sticks well to your dowel or bamboo. Tightly roll the whole sheet of wax
onto the dowel/bamboo. Keep the top and bottom of
your wax sheet even while rolling firmly. Your end
result should be a tightly rolled candle.

Step 5
To add a decorative accent to your garden flares add a natural ribbon or raffia bow to the base of your candle. (Be sure to remove your bow before burning
your candle.

 

 

 



FAST FACTS

Did you know that color selection can tell us a lot about personalities?

Yellow
Stable, Provides security, Dependable, Efficient

Red
Fun-loving, Lively, Spontaneous, Flexible, Carefree, Hands-on.

Green
Tough-minded, Powerful, Efficient, Usually right, Possesses deep knowledge

Blue
Warm, Compassionate, Romantic, Idealistic

 


We hope you enjoyed this issue of the En-Light-ener.
Thank you for your continued interest and support.
Our goal is to make this newsletter as entertaining and educational as possible.
Let us know if you have any ideas on how we can improve.

Candlewic Company
3765 Old Easton Road
Doylestown, Pennsylvania 18901
800-368-3352
 

 

Issue Index

March 2014 -- Pick a Wick and more...

February 2014 -- Soy-lutions and more...

January 2014 -- Jump Starting and more...

December 2013 -- A Year-End Thank YOU! and more...

November 2013 -- Choosing the Right Wax and more...

October 2013 -- Holiday Season Checklist and more...

September 2013 -- Choosing the Right Wax and more...

August 2013 -- Sunscreen For Your Candles and more...

June 2013 -- Tools of the Trade and more...

April 2013 -- Spring Is In The Air and more...

March 2013 -- To Be or Not to Be and more...

February 2013 -- Keeping Up With the Times and more...

January 2013 -- A New Year of Candle Making and more...

December 2012 -- The Twelve Tips of Candle Making and more...

November 2012 -- Managing Shipping Options, Luminary Candles and more...

October 2012 -- Resources for Candle Makers, Snowball Candles and more...

September 2012 -- Paraffin wax - Not Your Cup of Tea, One-Pour Tins and more...

August 2012 -- Choosing the Right Wax, Aluminum Molds and more...

July 2012 -- Candle Making Kits, Palm Wax Candles and more...

June 2012 -- Starting Your Own Candle Business, Grubby Candles and more...

May 2012 -- Three Step Guide to Show Success, Candle making Without Melting and more...

April 2012 -- With Every Season, a Change in Process and more...

March 2012 -- The Whole Ball of Wax and more...

February 2012 -- Choosing the Right Color and more...

January 2012 -- Time for Your Yearly Checkup - Candle Business Style and more...

December 2011 -- The Twelve Tips of Candle Making, and more...

November 2011 -- Our Candle Making Wish List, Holiday Luminaries, and more...

October 2011 -- Overlooked But Definitely Not Overrated, Making votives with votive pins, and more...

September 2011 -- Time to Light a Fire for Your Business, What to do with extra candle wax, and more...

August 2011 -- All About Candle Additives, Ice Candle Project, and more...

July 2011 -- Create Unique and Trendy Candles, Taper Candles Using Polyurethane Molds, and more...

June 2011 -- Use Summertime To Improve Your Candle Making Business, Floral Pillar Candles Project, and more...

May 2011 -- Getting Your Candle Making Business Online, About Aluminum Molds, and more...

April 2011 -- Choosing the Right Soy Wax, Making Scented Votives and Floaters, and more...

March 2011 -- 5 Valuable Tips for Starting a Candle Making Business, Making Dipped Tapers, and more...

February 2011 -- Advice on Selecting Candle Wicks, Add That Finishing Touch, and more...

January 2011 -- First Impression Is Everything in Selling Candles, One-Pour Tins, and more...

December 2010 -- The Twelve Tips of Candle Making and more...

November 2010 -- Wish List for Candle Making, How to Make Grubby Candles, and more...

October 2010 -- Getting to the Next Level, Making Mottled Candles, and more...

September 2010 -- Five Tips to Make Customers Fall In Love With Your Candles, Veggie Dip Candles, and more...

August 2010 -- Back to Candle Making, Summer Sand Candles

July 2010 -- Are You Selecting the Right Wax?, Beeswax Pillar Candles, and more...

June 2010 -- 5 Free (or low cost) Business Growth Candle Making Business Resources, Vegetable Wax Candles, and more...

May 2010 -- Create Your White Castle Opportunity, No Melting Required Candle Project, and more...

April 2010 -- How To Reduce, Reuse and Recycle When Making Candles, What To Do With Extra Candle Wax, and more...

March 2010 -- Why Color Is Important, Making Streak Candles Project, and more...

February 2010 -- Pillar Candles - What's Old Is New, Making Palm Wax Candles, and more...

January 2010 -- New Year, New Decade and New Candle Making Tactics, Textured Candle Project, and more...

December 2009 -- 12 Tips of Candle Making, and more...

November 2009 -- Tom Turkey on Candle Making, Candle Kits vs Buying Indidual Supplies, and more...

October 2009 -- Taking the Scary out of Candle Making, Snowball Candle Project, and more...

September 2009 -- 4 Quick Tips to Improve Your Candle Line, Layered Candle Project, and more...

August 2009 -- Is Big Always Better?, Cookie Cutter Candle Making Project, and more...

July 2009 -- How to Set Candle Prices, All Natural Beeswax Garden Flare Candle Making Project, and more...

June 2009 -- 5 Tips for Avoiding Margin Drain, Tri-Color Candle Making Project, and more...

May 2009 -- How To Select a Candle Wick, Chunk Candle Making Project, and more...

April 2009 -- Candle Making Ideas for Summer, Candle Making Projects, and more...

March 2009 -- Mold Techniques in Candle Making, A Simple Candle Project, and more...

February 2009 -- Setting the Right Mood Year Round, Tealight Candle Project, and more...

January 2009 -- Reacquainting Yourself with Candle Making Waxes, Tri-Color Candle Project, and more...

December 2008 -- 12 Days of the Candle Making Business, Candle Making Projects, and more...

November 2008 -- Candle Making Business Cliches, Miracle Molding Material Projects, and more...

October 2008 -- Candle Making Terms Explained, How To Make Mottling Candles, and more...

September 2008 -- Adding on to Your Candle Lines, How To Make Candle Luminaries, and more...

August 2008 -- Candles & Their Fragrances, How To Make Pillar Candles, and more...

July 2008 -- Sunscreen For Your Candles, How To Make Dipped Tapers, and more...

June 2008 -- Fall Candle Season Starts Now, Extraordinary Candle Making Project, and more...

May 2008 -- Green Candle Making, Green Candle Projects, and more...

April 2008 -- Recent Candle Industry Price Increases, Aluminum Mold Candle Project, and more...

March 2008 -- Straight Wax, Exciting New Candle Making Products, and more...

February 2008 -- Business Side of Candle Making, Ice Candle Project, and more...

January 2008 -- Basics of Blended Wax Candles, Rose Floater Candle Project, and more...

December 2007 -- 12 Days of Business, 2007 Candle Making Projects, and more...

November 2007 -- Show Time for Candle Making, Making Snow Candles, and more...

October 2007 -- Ready, Set, GO candle making, Candle Luminaries, and more...

September 2007 -- GREENING Your Product Line and Your Bottom Line…, One-Pour Candle Tins, and more...

August 2007 -- Candle Making's Center of Focus, Making Streak Candles, and more...

July 2007 -- The Latest in Candle Making Products, Votive Candle Project, and more...

June 2007 -- Setting Your Candles' Sale Price, Summer Candle Projects, and more...

May 2007 -- Determining Your Candle Making Costs, Using Extra Candle Wax, and more...

April 2007 -- Natural Wax Buzz Part 2, Layered natural candles, and more...

March 2007--Crucial details of candle making, Candle projects with no melting required, and more...

February 2007--How to choose a candle making mold, Making custom candle molds, and more...

January 2007--"Green" Candle Making, tri-color jar candle project, and more...

December 2006--Looking into the candle making future, 2006 candle projects, and more...

November 2006--Introducing...a candle making introduction, candle projects, and more...

October 2006--Prime time: candle wicks, taper candle projects, and more...

September 2006--Clearly still here:Gel candle making, one-pour tins, and more...

August 2006--Fragrance - the driving force of candle making, a new contest, and more...

July 2006--Planning your production, using granulated wax, and more...

June 2006--Our 35th Year, using aluminum candle molds, how much candle fragrance to use, and more...

May 2006--Summertime candle making, making natural lemon candles and more...

April 2006--Choose the candle wick, making tealight candles and more...

March 2006--Choose the right wick base, blending soy wax with paraffin, making palm wax candles and more...

February 2006--The roll of wax additives in a blended wax world, UV additives, making grubby candles and more...

January 2006--The secrets of soy wax candles, more ways to use candles, making soy wax container candles and more...

December 2005--Planning for the new year, announcing our new home, secrets about wicks, and more...

November 2005--Holiday candle making, ideas to sell more candles, making luminaries and more...

October 2005--Temperture issues when making candles, how to start making candles and more...

September 2005--Choose the right candle mold, ASTM safety standards, and more...

August 2005--Color and Fragrance trends, choosing the right candle making tools, and more...

July 2005--Planning for efficient production, Marketing your Candles, Making Swirl Candles, and more...

June 2005--New market trends in candle shapes and textures, Making Textured Candles, and more...

May 2005--The trends and science of candle fragrances, Making Mottled Candles, and more...

April 2005--How to select the proper candle wick, Top Colors, Making "Earthy" Chunk Candles, and more...

March 2005--Selecting the right wax Part III, Our Top Waxes, Making Floral Candles, Our History and more...

February 2005--Selecting the right wax Part II, Our Top Fragrances, Making Fruit Candles and more...

January 2005--Selecting the right wax, Using blended wax, Coloring wax, Making Layered Jar Candles and more...

December 2004--All about candle making fragrances, Making Grubby Candles and more...

November 2004--Choosing Color for your candle making, Making snowball candles and more...

October 2004--Candle Making Busy Season, Making Palm Wax Candles, Speeding Up Candle Production and more...

September 2004--Candle Wax Melters, Making Sense of your Candle Scents, Making Taper Candles and more...

August 2004--Getting Ready For The Season, Using Votive Pins To Make Votive Candles, No Melt Candle Making and more...

July 2004--Some History & What's New, Paraffin Myths, Making Golf Ball Candles and more...

June 2004--Choosing the Right Candle Wax for Your Needs, Making One-Pour Tins and more...

May 2004--Investigating New Products, Burn Testing, Making Freestanding Gel Pillars & Novelties and more...

April 2004--Candle Making Trends, Rolled Candles with Beeswax Sheets, Making Taper Candles and more...

March 2004--Color Theory & Techniques, Floating Candle Molds, Making Tealight Candles and more...

February 2004--Mold Techniques, Computers and Candlemaking, Making Easter Egg Chunk Candles and more...

January 2004--Marketing Natural Wax and Paraffin Candles, Layering Natural Wax Candles and more...

December 2003--Holiday Greetings, 2003 Year in Review, The 6 P's, Making Icicle Candles and more...

November 2003--Building Your Candle Product Line, Making Holiday Ornaments & Soap-on-a-Wick and more...

October 2003--Marketing Your Candles, Polyurethane Molds, Making Lemon Candles, and more...

September 2003--Packaging & Labeling, Essential Oils, Making Rolled Pillars with Beeswax Sheets, and more...

August 2003--Using Palm Wax, Increasing Your Profit Margins, Using Aluminum Molds, and more...

July 2003--Ultra Violet Light Absorbers, Reducing Shipping Costs, Dipping Techniques, and more...

June 2003--Choosing the Right Wick, Using a Wick Stick, Making Floater Candles, and more...

May 2003--New Products Review, Pouring Temperatures, Finishes For Your Candles, and more...

April 2003--Selecting Paraffin, Natural and “Hybrid” Waxes, Using Pillar Pins, and more...

March 2003--Selling & Marketing Candles, Making it Easier to Make Pillars, Wax Art Crystals and more...

February 2003--Pouring Temperatures, Votive Tips, Making Grubby Candles, and more...

January 2003--Candle Making Safety Tips, Instruction Labels, What To Do With Extra Wax and more...

December 2002--Polycarbonate Molds, Making Clear Snowball Candles, and more...

November 2002--Candle Making as a Second Language, The Story of Chandler, Natural F Wax, and more...

October 2002--Candle Making as a Second Language, Projects Review and more...

September 2002--Accessorizing Your Manufacturing, Making Clear Pillar Candles, and more...

July/August 2002--Making Cinnamon Roll Candles, Clear Pillar Base, New Products, and more...

May/June 2002--Back to Basics, Making F Wax Candles, and more...

April 2002--Making Streaked Candles, Wax 101 part 3: Natural Wax, and more...

March 2002--Making Crackled Candles, Wax 101 part 2: Gel Wax, and more...

February 2002--Making Easter Egg Candles, Wax 101: An Overview, and more...

January 2002 --Review of 2001, Frosty Snowman Candles, New Products, Safety Info and more...

December 2001--Botanical candles, making white candles white and more...

November 2001--Chunk candles, clearance sale!, candlemaking books and more...

October 2001--The new candle market, choosing gels, votive wicks and more...

August 2001--New products, new location , new web site and more...

July 2001--Selling & Marketing Candles (part 3), Candle Burn Times and more...

June 2001--Selling & Marketing Candles (part 2), UV Light Absorbers, Wax Additive Recommendations and more...

May 2001--Selling & Marketing Candles, Burning Instructions, Selecting Sustainer Bases and more...

April 2001--Natural Waxes, Candle Burn Times, Wax Pouring Temperatures and more...

March 2001--Making Wax Inserts, Blended vs. Non-Blended Waxes, Colors, Fragrances and more...

February 2001--Whipped Wax, Wax Art Crystal Wax, Gel Candles, Using Containers and more...

 

 

 


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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
Doylestown, Pennsylvania 18901
800-368-3352 | Local: 215-230-3601
Fax: 215-230-3606

info@candlewic.com




Official Distributors of: Penreco Candle Gels
Members: IGCA, National Candle Association



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