How To Create A Candle Company
This article includes links which we may receive compensation for if you click. However, at no cost to you.
If you’re business savvy, you can make money off anything. The sky is the limit. However, a popular way to earn money through your own business is to create and sell candles. You may look at candles and wonder if you can make a full-time living off selling these products. While it is indeed possible, it may not be easy. This is due to the fact that you’ll be making your own candles. Although you may not have to do absolutely everything from scratch, it is important to know the ins-and-outs of business before diving in. Therefore, we will go through how you can go about creating your own candle. After, we will discuss how much money you can potentially earn from selling candles.
What Is A Candle Company
If you were to create a candle company, you have a few responsibilities. Your company’s main goal is to create, distribute, and market your product. When marketing your product, it is important to find your target audience. Not everyone purchases candles. Therefore, finding a target audience and working within the niche will bring you a few steps closer to success.
Before you start all of this, you have to do your due diligence. Do you want to be a small or large company? What scents will you create? Who is your competition? Competition can be intense and candle selling is no exception. There are people who make this their life’s work and are truly passionate about it. Furthermore, you’ll be in competition with larger companies such as Bath & Body Works. Of course, a strategy is necessary. Going into a business, especially one that focuses on selling products without a plan is not a smart move.
Related Articles
- 4 High-Return P2P Lending Platforms For Canadian Investors
- Highest Paying Trade Jobs In Canada
- Earning Money During The Coronavirus
- From Hello To Hired: Breaking Through The Interview
- 4 High-Paying Jobs That Don’t Require A Degree
How To Create Candles
Before we go into how much money a candle company can earn, we will discuss how to create them. There are a few different ways this can be done. Some harder than others. However, we will tell you one of the easiest ways that this can be done. Although it may be easier, it does not mean that it’ll be the most cost-effective.
Once the wax is melted, fragrance oils will need to be added. This will give your candles a scent when they’re burning. These oils can be bought in many places as well. Amazon has a wide selection of fragrant oils. This selection comes with multiple different scents that can be made into individual candles. However, if you want to mix them, that’s up to you. Here is a link if you are interested in purchasing fragrance oils.
Next is the wick. Get the container you want to put the wax into attaching the wick. The wick needs to attach to the bottom and stick up. First, you can just glue it. However, you can dip the wick into the wax, hold it at the bottom and let it dry. This will allow the wick the stand tall within the container.
After this, pour the slightly cooled wax into the container while holding the wick in place without pulling on it. At this point, you need to let the wax sit and cool down. However, there is the possibility the wick will move around within the wax. Therefore, you need to find something to hold the wick in place while the wax cools. Putting two parallel objects on top of the container to hold it in place can work. However, you can google a few ways that this can be done.
The last few steps are pretty easy. If the candle looks not up to par, you can add a bit more so it looks smooth. Lastly, let the wax dry. If the wick it a bit too long, cut it until it is an appropriate length.
Voila! Your first candle completed. The best part about creating candles is that you can create multiple at the same time. As long as you have multiple containers and ways to melt the wax, you should be able to create them in bulk.
How Much Money Can You Make With A Candle Company
Next, we will get into how much money you can make through a candle company. There are a few key components when gauging how much money you will make with a candle company. The first is start-up costs, the second is overhead, and lastly is the profit. Initial costs are expenses that will only occur at the start. This can be registering your business or maybe down-payment on a physical location.
Overhead is the ongoing expenses that you must go through. These include materials, rent, shipping, and any other ongoing fees. The point is to mitigate as many expenses as possible at the start. A lower overhead and start-up costs mean there is a high-profit margin.
The pricing of candles can vary. According to candles.org, candles can range from $1.99 to $35. This number is typically based on size and packaging of the candle. Therefore, you should sell your candles accordingly. When pricing them you need to account for how much money you will spend on an ongoing basis. Of course, it will take a few months to properly gauge this figure as you need to project your sales. However, once you’ve got this figure, you can adjust the price of your candles or lower your overhead to increase profits.
Unfortunately, I can’t give you a solid number on how much money you’ll make. However, we can run some hypothetical numbers and get an idea. First, let’s assume that you’re selling these candles online through Shopify. Furthermore, we will assume that you’ll sell only one candle a day. Lastly, that all sales are domestic as this will save you the most money on shipping.
First, let’s assume that each candle you create costs you $5 on average. This cost comes from the amount of wax, oil, wick, container, and packaging. Next is the shipping. Shopify offers a 90% discount for domestic shipments. This means that you’ll be saving a lot of money. Therefore, let’s assume that shipping per day will be $2. This brings us to a total of $7 per day. Lastly, the monthly fee for Shopify.
The current monthly price for Shopify is $29 USD or $39.41 CAD. This means, if we calculate all of your expenses on a yearly basis you’ll be spending approximately $3,027.92 per year. Divide this by 365 days, you’ll spend approximately $8.30 per day.
What does this mean? You’ll have to price your candles slightly higher than this number. Many premium companies that sell candles such as Bath & Body Works sell candles for $15 each. However, if you were to sell your candles at $10 each, you’ll earn a $1.70 profit on each candle or $620.50 per year. This amount is not livable at a first glance. However, if you sell your candles at $15 each, you’ve almost doubled your expenses per year in profit. Furthermore, the longer you sell candles and market your business, the more likely you are to sell more than once per day. Lastly, seasonal candles sell well, especially during Christmas and Halloween.
Lastly, the expense I didn’t account for is marketing. This also depends on how much you’re earning. Market your business as much as you can afford. At first, it’ll be an out-of-pocket expense. However, once your business gains traction, you should be funding the marketing as a business expense.
Conclusion
At first, selling candles may not seem profitable. In our explanation selling one candle only made $1.70 per day. However, let’s imagine that you’re selling $100 per day. Suddenly that $1.70$ profit per day turned into $170. That’s equivalent to working a 9 – 5 job at $21.25 an hour. While it may seem easy, the more your business grows, the more time consuming it’ll be. However, if you mitigate your expenses and maximize your profits, all that hard work will definitely be worth it. Especially is owning a business and selling candles is something you love.
Shameed is just a man on a mission to help those around him gain financial success. Obsessed with writing about all things finance, this GTA native is constantly learning and sharing his experiences with others.
