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How to price your candles
Something that causes endless stress even to an experienced artisan is what to price a new creation at. It's not just as simple as picking a figure out of the air and it isn't as easy as finding out what someone else charges for something similar and going for that. To get the correct price for your item involves research and time.
The first thing to do is browse the web! Head into town to the candle and gift shops both at the high end of the retail chain down to the discount stores and take a mental note of what kind of prices they charge.
One thing I have learned is that different prices work in different areas, so what is considered a good price in one area could be considered too cheap or too expensive even 10 miles up the road! It can take time to develop the *right* price.
Once you have got to know the market, you can work out your costs into a formula that will tell you what prices you need to charge. What you have learned about the market will tell you whether your calculated prices are reasonable, too low or too high.
WHAT IS YOUR COST TO PRODUCE YOUR CANDLES?
You need to work out how much it costs to produce each candle. Take the cost of your wax and from that work out the price per ounce / gram (whichever measure you prefer to use!) of wax. Weigh your candle and calculate how much it costs in wax.
Do the same to work out the cost of fragrance oil and wick. I don't worry about the additive or dye cost as that is minimal - I just round my figure up a little at the end!! If you also package and label your candles you will need to include the cost of that. Remember to round up again for the cost of printer ink! You also need to think about any delivery costs involved in your supplies - add that into the cost of your candle.
The formula that a lot of people work by is 3 x cost which also figures in an amount for your time. Again this is a rough guide. Some candles take very little time to make (votives etc which can be made in large batches at a time) - whereas hurricanes and complicated pillar designs for example, take a great deal of time to make. This should all be figured into the price.
To a certain extent you need to take your working costs and the retail price you have in your head and play with them until you are making a good profit - and pricing it so it will sell. Stay away from the middle price too - the middle price tells people "I am nobody special!" It is important not to underprice yourself, but it is even more important not to over price. What is the good of having these beautiful hand poured candles if nobody will buy them because they are too expensive?
See, it can be complicated
Do the research - and be confident with your pricing.
Pricing is something that will develop and change as your business changes. When I first started making candles my prices were WAY too cheap because I couldn't believe people would actually want to PAY for something I had made! It was only as my confidence and experience grew that my prices grew too! I now feel that my prices are right. My customers buy my candles as quick as I can make them and very rarely do I hear a "oooooh that's expensive!"
SHOULD YOU CHARGE FRIENDS AND FAMILY FOR THEIR CANDLES??
YES!!!!!!!! Absolutely! My friends and family received a lot of freebies when I was first starting out, and whenever I am testing a new fragrance I will hand out freebies for them to test (usually a votive) but when it comes to them wanting more candles, then they pay just as any other customer would. I do give discount to family and friends and charge them my wholesale prices and they are very happy with this. It works for me too because they are my best customers!
Some of my online candlemaking friends have constant battles with family members and friends who all feel that they should get their candles for free. My advice to them and to anyone else is to show these people your price working sheet. Make sure they know that although it doesn't cost you the retail price to make the candle, it still costs you money and takes time and effort to make and those costs need to be covered.
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