How to Calculate The Price For Your Homemade Candles
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your candle business.
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More Tips On Pricing Your Homemade Candles
How To Price Your Homemade Candles
One of the most challenging aspects to starting a candle business is determining how much to charge for your homemade candles.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your homemade candles, it's critical that you first identify all of your costs and consequently mark up your homemade candles so you can factor in a profit.
The actual cost of your homemade candles may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your homemade candles, you'll want to create goals for revenue + how much profit you want your candle business to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your homemade candles is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your homemade candles fits best in the marketplace.
All of these factors play an equal part in pricing your homemade candles, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful candle business
7. Headline Solar ($6M/year)
Kevin Gillespie (from Schaumburg, Illinois, USA) started Headline Solar almost 3 years ago.
My name is Kevin Gillespie, and along with Garrett Le’ Tourneau, we created Wax & Wick, the 100% soy candles with wood wicks.
Some notable differentiation between Wax & Wick and traditional candles is that our branding is simple, the style of the candle will fit with any decor, and we use only 100% soy wax and Fsc-Certified wood wicks. Our impact on the environment is intentionally small.
8. Southern Elegance Candle Company ($1.2M/year)
DShawn Russell (from Raeford, North Carolina, USA) started Southern Elegance Candle Company about 6 years ago.
Hello! My name is D’Shawn Russell and I am the founder and CEO of Southern Elegance Candle Company. I started the company 4 years ago as a side hustle to make some extra money on the weekends and to get me out of the house. But it quickly grew to much more than I expected.
You can check out our brand story video here: Southern Elegance: Candles Crafted In The South
9. Coco & Bubbles ($168K/year)
Elise Phillips (from Atlanta, GA, USA) started Coco & Bubbles almost 3 years ago.
Hi there! My name is Elise Phillips and I am the owner of Coco & Bubbles Candle Company. As the name suggests, we make and sell candles, specifically, soy wax candles which are our flagship products.
Wholesale has become the biggest opportunity got us, right now. Currently, we primarily use Faire.com and Tundra.com. In 2021, I plan to do more direct advertising in B2B trade publications, such as Gift Shop Magazine and Smart Retailer, as well as attending trade shows, such as The Atlanta Markets.
10. TERRA ($30K/year)
Dianna Allen (from St. Louis) started TERRA about 2 years ago.
I’m Dianna, the founder of TERRA. Inspired by nature and the seasons, I sell eco-friendly candles that are hand-poured by myself in my hometown of St. Louis, Missouri.
I started this business by myself with less than $100 and now, only 8 months later, I’ve made a name for myself and my brand in St. Louis, I’ve sold my candles to dream companies like Greetabl and Kinder Beauty, and am celebrating win after win. The most recent being that I had my first month of $5,000 in revenue.
11. Bluminary ($6K/year)
Lauren Costanza (from Los Angeles, California, USA) started Bluminary over 2 years ago.
Hello! My name is Lauren Costanza, and I recently started a candle business called Bluminary. I was born and raised in Texas but spent a year in the Netherlands, earning my Master’s degree. While there, I spent my weekends traveling throughout Europe, crossing different locations off my bucket list. I photographed every moment, and it will forever be a favorite time in my life.
- Sage & Lavender- inspired by the lavender fields in Maui
- Eucalyptus - inspired by Blue Mountains of Australia
- Fresh Pine- inspired by the forests in Mammoth California Bluminary started in early September, and while there have been challenges and hurdles to overcome, I am proud to say we are slowly starting to earn back our initial investment of $3,000. Over the Christmas holidays in December, we generated $1,292.86 in sales. From September 2019 - today, we’ve made $2878.99 in sales.
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