Make Money Making Candles – At Home Candle Making Business Tips

Make Money Making Candles – At Home Candle Making Business Tips Make Money Making Candles – At Home Candle Making Business Tips.

So one of the most common questions I get is how to actually price your candles Once you've got the Campbell major ready an style=”text-decoration: underline;”>toan> sell it, an style=”text-decoration: underline;”>howan> can you decide what you actually sell it for now? It's really not that complicated.

There's really just a few things that you have to consider, but they can be pretty important things So I'm gonna go and cover those with you.

I've got a lot an style=”text-decoration: underline;”>toan> cover So we're gonna jump right into it so I know everybody makes different shapes and sizes of candles this method is gonna work regardless of what size of shake candy you make But for comparison an style=”text-decoration: underline;”>toan>day, we're gonna be checking out one of my candles This is a 4 ounce candle that sells in my shop for 655 So the big question is an style=”text-decoration: underline;”>howan> did I get there? well The easy answer is there is no easy answer because I'm buying so many different supplies from different companies Prices are fluctuating here And there there really is no surefire way an style=”text-decoration: underline;”>toan> price this down an style=”text-decoration: underline;”>toan> the exact penny, but we can get pretty close now I figure out what I want to charge for it the most important thing I need an style=”text-decoration: underline;”>toan> know is what it costs me to make it and that's really just assemble is breaking down our Supplies and item-by-item figure out how much it cost for that supply an style=”text-decoration: underline;”>toan> go inan style=”text-decoration: underline;”>toan> that one candle now to do that We've really got to break our supplies down into two different categories fix costs and fluid costs.

We would start with the fixed cost These are basically supplies that you're gonna buy in bulk.

You buy them pretty much from the same place every time they're the same price Nothing really changes about it so we can know exactly what that item costs every time we use it We'll start with our wigs pretty simple.

It's 895 for a bag of 100.

So that tells us that each individual wig is nine cents Next is the wick stickers that I use again pretty simple four dollars and forty-five cents per pack of 100 So tells us that each sticker is four and a half cents Next an style=”text-decoration: underline;”>toan> the jars that I use this is probably where everybody's gonna really start to differ but for this cameras just a standard 4 Ounce mason, jelly jar that you can buy pretty much anywhere.

I think I get these at Walmart Target tractor supply Costco Sam's pretty much anywhere and the price rarely changes on these as well It's seven dollars and 98 cents for a pack of twelve making each jar of 67 cents Nice, it's gonna be our wax pretty simple to figure out as well.

You can get a 50-pound case for fifty eight 95 So the math on that's pretty easy 250 pounds equals 800 ounces 58 95 divided by 800 ounces brings us to 73 cents an ounce four ounces in this candle So roughly 25 cents the wax per candle and our last fixed cost item is gonna be the lists now I don't care much for the mason jar legs to come on this jar I like to replace it with a one-piece black lid and those are me twenty eight dollars and thirty nine cents for a case of One hundred and forty-four of them making each one nineteen point seven cents per lid now.

Here's your first pro tip of the day well, I'm replacing it with this lid I Don't actually throw this one away.

You can resell these These will sell like crazy people that can go through these like hotcakes.

A lot of people use these for craft projects like literally I sell these so fast that if I have just a steady stream of these I can make a living selling lids and I would quit the candle business alan style=”text-decoration: underline;”>toan>gether.

That's just an style=”text-decoration: underline;”>howan> well these cells So this was nineteen point seven cents for the black lid actually resell these for twenty cents So it's kind of a break even the lid really isn't even figured inan style=”text-decoration: underline;”>toan> the total cost of my finished unit So that was it for our fixed cost items now, we're gonna talk about our fluid cost dial These are the ones that make it a little bit trickier to price our candles just because the prices are so fluid meaning they fluctuate So much when we try an style=”text-decoration: underline;”>toan> figure out our cost per candle some cases we're gonna have average some cases We're gonna have an style=”text-decoration: underline;”>toan> guess a little bit some cases We're gonna have to plug in arbitrary numbers to actually get us an style=”text-decoration: underline;”>toan> where we need to be But we can still get ourselves pretty close.

So a first fluid cost item is gonna be our labels Now these should be pretty easy to figure out you can basically take the cost of the pack of labels Which was 15 9500 thing divided by the number of labels Which is some comes with 135 and that can actually give you the idea at the cost of every blank label Both problem is we're printing on them.

And that's one of those things that's going to be fluid it's impossible to come up with an exact number of How much money in ink went inan style=”text-decoration: underline;”>toan> that one label every printer is different ink cartridges have different costs each labels gonna be different Black ink seems to be cheaper than green ink So a label with a lot of black inks is going to be cheaper than a label with a lot of green ink It's really impossible to break it down and actually figure it out.

But there's an easy way where we can do that I do most of my labels on on avery.

Com and they have an option on there where you can design the label there But actually purchase it from them and have them printed and send it an style=”text-decoration: underline;”>toan> you So I've checked our price list and I can see that's by a bulk quantity of these pre-printed It's gonna be about 31 cents per label now.

I know I can buy the blanks and print it cheaper than that myself But that's really the best number Oh, yeah, because I'm not gonna figure out the amount of ink for each label the wear and tear on my printer Just not gonna happen.

I'm not gonna put in the Energy trying to figure that out and it's gonna fluctuate so much Anyway, it's not gonna do me any good to try to figure it out So I'm willing an style=”text-decoration: underline;”>toan> accept that arbitrary number just to keep my Mac cool Yeah, so the next fluid cause is gonna be our campbell die.

I like to use Lakewood Campbell die Now the cost of this is gonna be pretty miniscule But don't skip over it because you know over 2,000 candles a year over 10 years.

It's really actually gonna add up so you need to go and figure it inan style=”text-decoration: underline;”>toan> your costs and although it seems impossible is actually pretty simple so I can bob is One ounce jar for five dollars and forty-five cents The manufacturer tells us that this is enough died to bring 100 pounds of wax to a medium shade So hundred pounds of wax is gonna be 16 ounces five dollars and forty-five cents divided by 1600 means that today one ounce of wax will cost point zero zero three cents or three tenths of a penny Four ounces of wax on our candle.

So for each candle, we're going to be using one point two cents of dye Like is it pretty miniscule? But we need an style=”text-decoration: underline;”>toan> include it because this can happen And our last item was going an style=”text-decoration: underline;”>toan> be our fragrant oil now up until now.

It's been pretty tame The numbers aren't pretty easy to work with and still be able an style=”text-decoration: underline;”>toan> stay consistent This is about far the most expensive item that goes into our candles and the prices can fluctuate dramatically now the easiest thing to do would be an style=”text-decoration: underline;”>toan> figure out how much you candles using this fragrance oil makes How much you can they're using this fragrant oil base and so on but at the end of the day that's going to give us The same size candles with prices all over the place it's gonna make one candle cost 250 an style=”text-decoration: underline;”>toan> make it's gonna make another candle cost three dollars and 12 cents an style=”text-decoration: underline;”>toan> make It's gonna make another one cost a dollar ninety eight an style=”text-decoration: underline;”>toan> make and our price charts gonna be all over the place It's going to confuse people and it's going to look sloppy.

It's just not really where we want to go We want to have the same size candle price the same across the board.

It's just more appealing It's easier to sell and it just looks a lot cleaner but even though these fluctuate greatly in price we can still narrow down best thing an style=”text-decoration: underline;”>toan> do is just find a Medium price range so on average fragrance oils gonna be anywhere from sixteen to twenty two dollars a pound You can't sell them find some higher or lower but that's gonna be our good average base So that gives us an average cost of $19 a pound.

So $19 a pound 16 ounces.

I found $2 19 per ounce So rather than trying an style=”text-decoration: underline;”>toan> break it down per candle We're actually going to figure this number about the packs of camels that we've made and then divided from there all I mean by that is Make these a case of the time or twill the time so our members on that it's going an style=”text-decoration: underline;”>toan> take two and a half pounds Of wax and a 12 percent fragments load that means that I've used five ounces of fragrance oil for this batch of twelve candles five times a dollar 19 is $5.

95.

So an style=”text-decoration: underline;”>toan> make this back to 12 candles cost 595 divided by will means that there's forty nine point five cents worth of fragrance Oil in this candle.

We're almost done.

There's one more then consider.

You noticed that throughout all of this.

I've not talked about shaking yet Shipping can be all over the place Can be a killer an style=”text-decoration: underline;”>toan> a small shop can be really expensive and can be down there impossible to figure out because in the long Run, we're sneaking supplies.

We're buying from different companies though the nine or ten supplies that go into this candle They actually probably come from six different companies that are purchased in different times in different sized orders So the shipping is just crazy find an exact dollar amount is just pretty much impossible But what I've done is I went back over my shipping records for the past two years and found that on average Shipping calls for about eighteen percent of my an style=”text-decoration: underline;”>toan>tal order So for every order that I placed if I it was $100 order Shipping cost without order were eighteen dollars cheaper some places more expensive than the other But on average it was about 18% So that's the number I go with when I figure my an style=”text-decoration: underline;”>toan>tal costs So now that we know what each item cost we're gonna figure out per candle.

So I've added everything up so far multiplied it by 18% an style=”text-decoration: underline;”>toan> cover our shipping cost and we found that this size Campbell cost me two dollars and twenty four cents to make pro tip number two Once you scale your business where you move them a lot of candles out the door you nice an style=”text-decoration: underline;”>toan> start buying things in bulk So buying everything in bulk that I could the absolute cheapest that I can actually make this candle is a dollar fifty five So now that I know exactly what it cost now, I'd figure out what I can actually sell it for The good news is there's really no right or wrong answer The only number I really have to worry about is that two dollars of twenty four cents It cost me an style=”text-decoration: underline;”>toan> make it as long as I've got that covered.

I'm making money I can sell it for three dollars.

I can sell it for five I can sell it for fifteen if somebody will pay that for it But most importantly as long as it's over two dollars and twenty four cents.

I'm actually making money I wish there was an easy answer.

I could give you to find out exactly what you can sell it for It's going an style=”text-decoration: underline;”>toan> take a lot of research on your part low.

It's going to depend on the quality of the product you made the amount of competition in your area the prices of your competition and the actual demand from your customers only you will know those so I can't give You that answer but I can get you fairly close the most common pricing model that people use is your cost of supplies Multiplied by two to get you your wholesale costs So if I were selling these on both an style=”text-decoration: underline;”>toan> the wholesaler I'll be charged for four dollars and forty eight cents and an style=”text-decoration: underline;”>toan> make our retail cost we multiply that number by two so we take The 448 multiply it by two gives us a retail of 896 which is fairly reasonable for this sized candle If you look on Etsy you'll see this house can let me work from $6 to $10 pretty good average pricing but again You have to know where your competition goes if your price comes an style=”text-decoration: underline;”>toan> $9 and everybody else in your area is selling the exact same candle for 6 dollars and 55 cents price and yours at $9 Probably is gonna be much good if they can get the exact same thing from the very next shop for 655 again That's not an easy answer.

I can give to you.

That's just gonna come down to you researching the supply-demand Competition and quality of the candles in your area an style=”text-decoration: underline;”>toan> find the actual price that you can't charge but as a general rule the cost Multiplied by tuned for all the settle multiplied by two for retail It's good that gives you pretty close and then the best part is once you start selling a lot of candles you can scale And start undercutting your competition a little bit and still be making actually more money than they are For example, I an style=”text-decoration: underline;”>toan>ld you I make this fraction a dollar 55 sell it for 655 But because I buy in bulk and my supply costs are lower I can actually use the cost by 2 by 2 model come up with a less expensive candle and still get the top margin rate for that model look Like I said earlier knowing what it cost actually make this the most important thing Because really regardless of what I charge for it as long as I had that two dollars and 24 cents or that dollar 55 covered Anything else is extra.

Hope you guys enjoyed this.

Hope this was helpful for all of my international followers.

Sorry I didn't use any metric measurements all standard Not too familiar with the metric system so Hopefully that it won't be an style=”text-decoration: underline;”>toan>o hard for you guys to convert and understand I'll try to dig up a conversion chart and put that In the video description, maybe that'll help somebody.

Hope you guys enjoyed this video.

Hope it helps a lot Thanks for watching.

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