How Much Should I Sell My Handmade Candles?
Pricing handmade candles can be tricky. Unlike mass-produced candles, handmade candles involve more individualized materials, labor, and creativity. When determining pricing for your homemade candles, there are several key factors to consider:
Your Costs
The main costs involved in making candles are the ingredients, packaging, labeling, and shipping. The base ingredients like wax, fragrance oils, wicks, and dye can range from $1-3 per candle depending on size and quality according to this source. Packaging like jars, lids, and labels may cost around $1-2 per candle. As noted in this Reddit thread, basic packaging and shipping supplies can add $1-2 per candle for small scale makers. So the total cost per candle may range from $3-7 depending on the size and complexity. It’s important to track all your material and supply costs accurately per unit to determine your true costs before pricing.
Your Time
When pricing your handmade candles, you need to consider the time you spend designing, making, and marketing them. An important factor is deciding on an hourly rate for your time. Come up with an hourly wage that you feel is fair compensation for your effort and skills. According to this source, it can take 1-2 hours to make a single candle from start to finish. Track the actual time it takes you and multiply it by your hourly rate. This covers the hands-on production. Additionally, account for the hours spent designing candle scents, procuring materials, managing your business, and marketing. Add up the total time invested in each candle and multiply it by your hourly wage to get an accurate picture of the time costs.
Uniqueness
Handmade candles often feature special scents, designs, and ingredients that make them truly one-of-a-kind and desirable to customers. Using custom fragrance blends or blending your own essential oil scents can help your candles stand out from mass-produced options. Incorporating decorative elements like crystals, seashells, dried botanicals, or pressed flowers into your candle design adds artisanal flair. You can also experiment with unique candle vessels, wicks, or wax blends to differentiate your product.
Leveraging distinctive scents, visuals, and high-end ingredients justify pricing your handmade candles above typical retail prices. Your specialized knowledge and handcrafting skills further add value compared to factory-made alternatives. Calling attention to these unique qualities when marketing your candles helps validate why customers should pay more for the quality and customization you offer.
Market Research
When determining pricing for your handmade candles, it’s important to research what competitors are charging for similar products. Look at candle makers on platforms like Etsy and at local craft fairs to get a sense of typical prices for handmade candles based on size, ingredients, packaging, etc. According to candlescience.com, a traditional pricing formula is to charge two times your cost for wholesale orders and three to four times your cost for direct sales. So be sure to account for your unique costs and value proposition when setting prices.
It’s also helpful to have a sense of what customers expect to pay and consider fair pricing. Looking at reviews and feedback for competitors can provide insight into reasonable price points. According to homesteadsparkle.com, the average price for an 8oz handmade candle is around $15-20. Consider running small scale pricing tests with customers to determine the sweet spot between covering your costs and aligning with perceived value.
Perceived Value
An important factor in pricing your handmade candles is their perceived value, which includes elements like presentation, branding, and packaging. As mentioned in the article “How to price your candles” from CandleScience.com, “The higher your brand’s perceived value, the more you can charge even if your total costs stay the same”. You want customers to feel like your candles are worth paying a premium price for, based on their overall look, quality, and uniqueness.
Consider investing in visually appealing jars, tins, or other vessels to hold your candles. Glass apothecary jars with clean, simple lines often give a sophisticated feel. Pay attention to color palettes and labels – make sure your branding looks polished and purposeful. And don’t neglect the packaging your candles go in, like gift boxes, wrapping paper, ribbons, etc. According to candle business coach Carrie Walsh, “packaging can account for 50% of the perceived value” (Walsh). Take the time to make your candles look like a special, upscale gift.
The unboxing experience and first impression of your candles sets expectations about quality and price point. Make sure their presentation aligns with the premium pricing you want to charge. With good branding, packaging, and visual appeal, customers will more readily accept higher prices.
Volume Discounts
Many candle makers offer discounts for customers who purchase candles in bulk or large quantities. This incentivizes customers to spend more per order by lowering the per-unit price. According to research by the National Candle Association, the average discount for a bulk candle order is between 10-20% off the regular retail price1.
Common volume discount tiers are:
- 10% off for 5-10 candles
- 15% off for 11-20 candles
- 20% off for 21+ candles
The specific discount percentages and order sizes can be adjusted based on your profit margin goals and what you think will entice customers. Just make sure volume discounts still allow you to make a profit on each sale.
Testing Prices
One effective strategy to determine pricing for your handmade candles is to try testing different prices and gauge customer response. You can do this by offering the same candle product at different price points through your sales channels. For example, you may price a certain 8 oz soy candle at $15, $18, and $22 to see which generates the most sales and positive feedback.
By experimenting with pricing in this way, you’ll gain insight into what price level resonates best with your target customers. The price that sells the most units would likely be optimal. It’s important to test prices over a long enough period of time to gather sufficient data. Be sure to keep detailed records on the response at each price point.
According to one source, testing prices is “the best way to understand how much customers will pay for your products.” It helps you find the optimal balance between maximizing profits and maintaining reasonable affordability. Some trial and error is to be expected when determining the right pricing. But diligent experimenting will pay off in finding a sweet spot for your candle pricing.
(Source: https://www.candlescience.com/how-to-price-your-candles/)
Non-Monetary Factors
When determining your candle pricing, there are some important non-monetary factors to consider as well. Many candle makers like to give back to their community or support charitable causes. You may want to factor in discounts or donations for certain groups or organizations. For example, you could provide a 10% discount for teachers or donate a portion of sales to a women’s shelter. This allows you to operate with social responsibility while potentially attracting new customers who support your mission.
Another non-monetary factor is exposure and word-of-mouth marketing. You may initially price candles lower if you are trying to build awareness and get your products into more hands. Once you have an established customer base, you can increase prices accordingly. It’s often worth trading some short-term profit for long-term growth. Initial low pricing can also help generate buzz, with early customers excitedly telling friends about your products.
Finally, you can use pricing as a way to eliminate excess stock. For limited edition or seasonal candles that you want to unload, put them on clearance or offer special sales and bundles. This allows you to profit from inventory that might otherwise go to waste.
Conclusion
When deciding how to price your handmade candles, there are a few key factors to consider.
First, look at your costs and time invested to understand your baseline pricing. Then do market research to see what similar candles sell for and make sure your pricing aligns with perceived value.
Offer volume discounts to incentivize larger purchases, but start by testing different price points to find the optimal balance between profit margin and unit sales.
Remember that non-monetary factors like your branding, reputation, and presentation also impact perceived value. Price for profitability but don’t undermine the quality and care put into your candles.
In summary, know your costs but ultimately price based on the value you provide customers. Experiment to find the ideal price point and use discounts wisely. Focus on conveying worth through quality and brand image. With the right balance, your handmade candles can be profitable at fair prices for both you and buyers.
