Can I Make My Own Candles And Sell Them?

Candle making started as a craft and hobby but has grown into a popular small business opportunity in recent years. With the rise of online selling platforms like Etsy, many creative entrepreneurs are turning their candle making skills into successful home-based businesses. The candle industry has seen steady growth, with total revenues estimated at $2.9 billion annually in the United States. Custom-made candles allow creative makers to tap into this demand while expressing their unique style. Starting a candle business requires an understanding of materials, methods, regulations, and strategies to make, market, and sell homemade candles profitably.

This article provides guidance on key considerations for starting your own candle making business and selling your handmade candles legally and successfully. We’ll cover important topics like required permits, finding suppliers, candle designs, product testing for safety and quality, production methods, packaging and shipping, pricing strategies, and low-cost marketing tactics to launch and grow a profitable candle brand.

Legal Requirements

Before selling homemade candles, you need to make sure you have the proper licenses and permits. This varies based on your state and local regulations.

In most states, you need a general business license to sell products like candles. This requires registering your business name and obtaining an Employer Identification Number (EIN) from the IRS. Consult your state and local government’s website for specific requirements on obtaining a business license [1].

Additionally, many states require a sales tax permit or seller’s permit so you can collect and remit sales tax. Some states may waive this requirement if your revenue is below a certain threshold. Check with your state revenue department for sales tax obligations [2].

At the local level, you may need zoning approval or a home occupation permit to operate a home-based business. Some counties require a Certificate of Occupancy before selling products from your residence. Contact your local zoning office to find out specific rules.

While a candle-making license is not necessary, you must comply with all business regulations and obtain the proper permits before selling candles legally.

Making Candles

Making candles at home is a fun and rewarding hobby that allows you to create customized scented candles. To get started, you will need some basic equipment and ingredients. The main components for candle making include wax, fragrances, dyes, and wicks.

The most common types of wax used are paraffin, soy, and beeswax. Paraffin wax is derived from petroleum, while soy wax is made from soybeans. Beeswax is a natural wax made by honey bees. Each wax has different properties – paraffin burns longer, soy has a lower melting point, and beeswax has a natural honey aroma. The wax type can impact the candle’s burn time, texture, and scent throw. A good beginner wax is a blended wax, mixing paraffin and soy [1].

Fragrances are added to candles to give them scent. You can use synthetic fragrances made for candle making or essential oils. Start with a fragrance load between 6-8% of your wax weight. Essential oils can provide therapeutic aromas, but may fade faster. Mixing synthetic and essential oil fragrances is an option too. Test different fragrance amounts to find your desired scent strength.

Wicks draw the melted wax up while burning to sustain the candle’s flame. The wick thickness must match the wax type and candle diameter to prevent issues like tunneling. Pre-tabbed wicks make wick sizing easier. Use cotton or paper cored wicks for most candles. Test wicks to ensure proper burn and adjust as needed. [2]

With the right materials and safety precautions, you can explore designing candles in different shapes, colors and scents at home.

Candle Design

When designing your own candles to sell, there are several key elements to consider in terms of the candle’s aesthetics and packaging. According to research from Trending Candle Designs for 2024, some of the hottest trends for 2024 include geometric shapes, muted earth tones, and clean, minimalist labeling.

Unique shapes beyond just standard jars and pillars can help your candles stand out. Interesting polygonal shapes like hexagons and octagons are forecast to be popular. Ovals and arched forms are also on trend. As for colors, earthy neutrals like sand, clay, and slate shades are rising in popularity, paired with natural materials like wood and stone. Simple, elegant labels with modern fonts and minimalist designs help convey a refined, contemporary style.

According to research from Understanding the candle trend 2024, the key is balancing creativity with marketability. While unusual shapes and scents can be eye-catching, consumers still have certain expectations when it comes to candles. Keep accessibility and usability in mind. At the end of the day, candles are decorative but also functional products.

With some strategic planning and experimentation, you can craft candle designs that feel fresh and innovative while still having mainstream appeal to a broad target audience.

Testing and Safety

A very important part of making and selling candles is testing them for safety and performance. Candles that are not properly tested can be a safety hazard and liability. Some key tests include:

Burn Testing: All candles should undergo burn testing to make sure they burn cleanly, evenly, and safely. According to Intertek [1], important factors to test are flame height, retention of shape as the candle burns down, smoke emissions, total burn time, and more. Burn testing helps identify any potential issues or defects.

Warning Labels: Properly labeled candles are crucial for consumer safety. Warning labels should be clearly printed on all candles and inform users of basic safety precautions. Common warnings include keeping burning candles away from flammable objects, not leaving burning candles unattended, and keeping out of reach of children and pets.

Adhering to candle testing and labeling standards is important for consumer safety. Following guidelines and regulations from organizations like ASTM International and the FDA reduces liability risks. Thorough testing and clear warning labels are essential steps before selling homemade candles.

Scaling Up

Going from a hobby candle maker to running a successful business takes planning and investment. As demand increases, you’ll need to scale up equipment and inventory to fulfil larger orders while maintaining quality and efficiency.

Begin investing in more commercial-grade equipment like industrial melting pots, large mixing vessels, and high-volume molds. Consider leasing a dedicated production space with adequate ventilation, heating, and cooling. You may also need employees for pouring, packaging, and shipping. Work with suppliers to secure bulk discounts on wax, fragrance oils, wicks, and jars. Aim to keep 2-3 months of inventory on hand.

Initially take on only the orders you can fulfil reliably. As systems get streamlined, carefully take on more volume without compromising. Keep quality control top notch. According to Startup Advice, scaling up strategically and sustainably leads to lasting success.

Marketing and Sales

There are several ways to effectively market and sell your homemade candles once you’ve perfected your recipes and production process. Some popular sales channels include:

Online retail: Selling through your own ecommerce website or online marketplaces like Etsy and Amazon Handmade. This allows you to reach customers all over the world. Focus on beautiful product photography, SEO optimization, and social media marketing. Source: https://www.petronaftco.com/make-candles-step-by-step/

Wholesale: Selling to gift shops, boutiques, and other retailers in bulk at a wholesale price. Attend trade shows with product samples and sales sheets. Send emails and samples to potential wholesale clients. Offer competitive pricing and incentives. Source: https://www.pinterest.com/pin/how-i-price-my-candles-determine-shipping-costs-my-experience-so-far-how-i-bookkeep–69524387992650722/

Consignment: Placing your products in retail stores to sell on consignment, with the store taking a commission. This provides exposure without inventory risk. Make sure to label products and establish terms upfront.

Branding: Creating a strong, memorable brand with great packaging, logos, and messaging. Use cohesive designs and high-quality materials. Engage customers on social media and at markets/events. Offer promotions and build loyalty.

Pricing

When setting prices for handmade candles, you’ll need to consider your costs and desired profit margin. Some common pricing models for candlemakers include:

• Cost Plus Pricing – Calculate your raw materials cost per candle and add a markup percentage to cover overhead and profit.
• Competitive Pricing – Research competitor pricing for similar candles and price yours accordingly.
• Value-Based Pricing – Price based on the value customers perceive from your unique designs, fragrances, etc.

Many small candlemakers aim for a 100-200% markup from their candlemaking costs to cover business expenses and profit. However, your exact markup percentage may vary based on factors like volume discounts on supplies and perceived value.

Tool like the Candle Pricing Calculator can help determine your costs and ideal pricing strategy.

Testing different prices and analyzing sales data will help you hone in on optimal pricing over time. Overall, ensure your pricing properly accounts for costs and delivers a reasonable profit margin.

Packaging and Shipping

Proper packaging and shipping is crucial when selling candles, as you need to prevent damage and leakage during transit. Here are some key considerations:

For packaging, you’ll need boxes, bubble wrap, and other protective materials to cushion the candles and prevent breakage. It’s best to use boxes specifically designed for shipping candles, with sturdy corrugated cardboard and divider partitions to separate each candle. Using quality candle packaging boxes from a supplier like Uline can ensure your products are protected. You’ll also need stickers, tape, and invoice slips for the packaging.

For postage, you’ll need to weigh your candle packages and determine the best shipping method – first-class, priority or parcel select for USPS, or services like UPS and FedEx. Heavier candles and larger orders may require priority boxes and extra postage. Make sure to account for packing materials when weighing packages. Tracking numbers and insurance can provide protection and peace of mind. The U.S. Postal Service provides guidance on shipping candles and other hazardous materials like perfumes.

Take care when sealing boxes with tape and packing materials to prevent spills and leaks. Include packing slips and contact information for customer service issues. With the right packaging and postage, you can ship candle orders safely to customers.

Conclusion

In summary, making your own candles and selling them can be a rewarding and profitable hobby or small business if done properly. The key factors to consider are adhering to safety regulations, using quality materials, having attractive yet functional packaging and labeling, effective marketing, competitive pricing, and outstanding customer service. With passion and persistence, homemade candle making can become a beloved pastime or even full-time career. Just remember to start small, continually improve your products and processes, pay close attention to customer feedback, and above all – be creative and have fun! We hope this guide has provided helpful information and inspiration as you embark on your candlemaking journey.