How Much Does It Cost To Make A Candle At Weathered Wick?

Weathered Wick is a small batch candle maker located in Vermont that handcrafts soy wax candles using high quality raw materials. Their candles are made through a meticulous multi-step process that involves preparing the wax, choosing the perfect essential oil blends, pouring each candle, and packaging them for sale. In this article, we will break down the major costs that go into making one of their signature soy candles, from raw materials to labor to packaging and beyond. By looking at the different components involved in candle production, we can better understand the care, effort, and expenses required to create these handmade works of art.

Raw Materials

The main raw materials that go into making a candle at Weathered Wick are wax, wicks, fragrance oils, dyes, and containers. Wax makes up the bulk of a candle. Common types used are soy, paraffin, coconut, and beeswax. Each wax has different properties in terms of burn time, scent throw, and natural versus synthetic origin. Wicks are typically cotton or paper fiber strands that transfer the flame to melt the wax. Longer wicks are needed for larger candles. Fragrance oils are blended scents that provide candles with aromatherapy effects. Over 10,000 options exist. Dyes color the wax and come as liquid or blocks to add to melted wax. Containers hold the wax and wick. Choices range from glass to tin to ceramic vessels in wide shapes and sizes.

Equipment

Making candles requires some specialized equipment that represents a significant upfront investment for a new candlemaking business. Here are some of the key equipment costs:

Melters – Melters heat up wax to the proper temperature for pouring into molds and hold it in a liquid state. Many small candlemakers start with a basic double boiler on a stovetop, which can range from $30 for a used setup to $150 for a high-quality stainless steel double boiler. For larger batches, electric wax melters provide more convenience and consistency, running from $200 on the low end to $1000 or more for industrial melters.

Thermometers – Getting the wax to the right temperature is crucial, so a specialized thermometer is essential. Candlemaking thermometers calibrated specifically for wax range from $10 to $50.

Pour pots – These pots allow pouring the melted wax smoothly into the candle mold. Expect to spend $25 or more for a good steel pour pot.

Molds – An inventory of various candle molds is required to produce different shapes and sizes. Silicone molds are pricier but allow easier candle removal. Basic plastic molds are cheaper at $1-5 each, while more intricate and durable aluminum or silicone molds can cost $10-20 or even up to $100 for large custom molds.

Stickers/labels – The candle design requires stickers, labels, or other branding to finish them. Plan on sticker or label costs of $0.10-$0.50 per candle.

Labor

Labor costs make up a significant portion of the total cost to manufacture candles. This includes both the wages paid to employees as well as the time invested by the candle making business owner.

Employees involved in candle production, packaging, and other direct labor will need to be paid an hourly wage. The average wage for a candle making employee is around $15 per hour. For a small operation with 5 employees working full-time, this can add up to $60,000 or more per year in wages.

Additionally, the owner will devote considerable time to making candles that needs to be accounted for. If the owner spends 30 hours per week hands-on making candles, that’s another $45,000 per year at a rate of $25 per hour. Combined, labor costs quickly become one of the largest operational expenses.

Overhead

Overhead costs are expenses that are not directly tied to producing candles, but are necessary to operate the business. Key overhead expenses for a candle making business typically include:

Rent: The cost of leasing a workspace and retail space, if applicable. This is usually one of the largest overhead expenses.

Utilities: Gas, electric, water, phone/internet, etc. Utility costs can vary a lot depending on the space needs and energy demands of production.

Insurance: Necessary policies like general liability, property, vehicle, workers compensation, etc. Proper insurance coverage is important for mitigating risk.

Office supplies: Equipment like computers and phones, plus consumable supplies like paper, pens, printer ink. While not a huge expense, these are ongoing operational costs.

Minimizing overhead costs per unit produced is an important part of maintaining profitability. But sufficient space, utilities, and other overhead costs are essential for the business to function effectively.

Packaging

Packaging materials are a significant cost for many candle makers. At Weathered Wick Candles, we take great care in selecting packaging that not only protects the candle but also enhances the unboxing experience for customers. Here’s a look at the main packaging components we use and their costs:

Jars

We use high-quality, durable glass jars in various sizes depending on the candle. Glass jars can cost $1-3 each depending on the size and style. We choose clear jars to showcase the candle design and fragrance.

Lids

Metal lids help seal in fragrance and protect the candle. We spend around $0.25-0.75 on lids per candle. The lids are silver or gold colored to complement the jar.

Shrink Wrap

To secure the lid and provide tamper evidence, we shrink wrap each candle tightly. Shrink wrap costs around $0.15 per candle.

Tissue Paper

For an extra visual touch, we line the inside of the box with coordinating tissue paper. This costs around $0.20 per candle.

Ribbon

We finish each candle box with a beautiful ribbon and handmade charm. The ribbon costs around $0.30 per box.

Marketing

Marketing costs are a significant expense for small candle businesses like Weathered Wick. An effective marketing strategy is critical for getting the word out about your candles and attracting customers. Here are some of the main marketing costs to consider:

Website

Having a professional website is essential for any business today. Costs include web hosting, a domain name, website design, and ongoing updates. A candle company would want an attractive, easy-to-navigate site to showcase products, allow online orders, and provide company information. Budget $2,000-5,000 for initial website development and $500-1,000 annually for hosting and maintenance.

Advertising

Paid advertising through platforms like Google Ads, Facebook Ads, and Instagram can help drive traffic to your website and increase brand awareness. Budget $500-1,500 per month for a targeted online ad campaign. Print ads in magazines, product catalogs, or local publications are also an option. Costs vary greatly but plan on $2,000-5,000 for a moderate print campaign.

Trade Shows

Attending candle and home fragrance trade shows allows you to exhibit your products, interact with customers, connect with retailers, and increase exposure. Typical costs for exhibiting include the booth space rental ($1,500-5,000), travel, shipping, promotional materials, and more. Overall budget $5,000-10,000 to exhibit at one or two major shows.

Taxes & Fees

To legally manufacture and sell candles, Weathered Wick must comply with all relevant taxes and obtain any required licenses or permits. The main taxes and fees that must be accounted for in the cost of making candles include:

Business License

Most states require businesses above a certain size to obtain a business license, which involves paying an annual licensing fee. The cost of the license can vary based on company revenue and other factors.

Sales Tax

Weathered Wick must collect sales tax on candle purchases as required by state and local laws. This sales tax is a percentage of revenue that must be remitted to tax authorities.

Income Tax

Federal and state income taxes must be paid on Weathered Wick’s net profits. Income tax rates can range from 15% to over 35% depending on taxable income levels and business structure.

Properly budgeting for these recurring tax and licensing expenses is important for determining the true cost of manufacturing candles at Weathered Wick.

Shipping

Shipping is one of the biggest costs involved in running a candle business. At Weathered Wick, we strive to find the most cost-effective shipping solutions so we can keep our candle prices affordable for customers.

When it comes to packaging materials, we use recycled cardboard boxes and paper filler to keep our shipping costs and environmental impact low. The cardboard boxes cost around $0.50-1 each, depending on size, and paper filler costs next to nothing when sourced sustainably. We aim to use only the minimum packaging needed to safely ship our candles.

Postage rates vary depending on the shipping provider, package weight, and destination. For standard domestic shipments within the contiguous US, we can ship a 1 pound candle for around $3-5 using USPS First Class Mail. Heavier packages may need to be shipped via Priority Mail at a starting rate of around $8. For international shipments, prices start around $20 via USPS International and go up dramatically from there depending on the destination country.

As a small business located in a rural area, we also factor in gas and time costs for local deliveries. Local delivery allows us to bypass shipping fees by dropping off orders directly to customers within 50 miles. This costs around $5-10 in gas per trip plus 1-2 hours of time for the round trip delivery. We aim to schedule local deliveries in batches to maximize efficiency.

Profit Margin

When pricing handmade candles, one of the most important factors to consider is your profit margin. The profit margin is the percentage of the sale price that is profit after your costs of goods sold are accounted for. Most small candle making businesses aim for a 50-100% profit margin on their products.

For a handmade candle that costs $10 to produce, you would want to sell it for $20-30 to achieve a 100% profit margin. This allows you to not only cover your raw materials and operating costs, but also earn a healthy return on your time and effort.

Some pricing considerations for profit margins on handmade candles include:

• The uniqueness and quality of your candles – More premium candles can command higher profit margins
• Competitor pricing for similar products
• Your target customer and what they are willing/able to pay
• Maximizing profits while keeping prices reasonable

Finding the optimal price that generates high profit margins without deterring sales takes some experimentation when first starting out. But focusing on creating an exceptional product and perceived value for customers will allow room for healthy margins on handmade candles.