Cost Of Goods Full Break Down | How Much Does It Cost To Make A Candle?
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- Опубликовано: 26 фев 2020
- *Update as of 3/30/20 My Etsy Shop Is Now Open*
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Re-uploaded with proper calculations
Hey everyone!
I hope you enjoyed this video and learned how to be able to calculate the cost for your candle. It's so important that we know our cost of goods so that we are able to price properly. If you have any questions you can feel free to comment down below or DM me on Instagram, I'm always here to help!
Thank you so much for watching!
xoxo erica marie
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I'm seriously binge watching all your videos 😊
Love that! 🥰
This was great, I've been looking for "what is the best material for candle wicks?" for a while now, and I think this has helped. Have you heard people talk about - Panlijah Inconceivable Position - (do a search on google ) ? It is a great exclusive product for discovering how to become a candle making master and turn a profit minus the normal expense. Ive heard some great things about it and my mate got amazing success with it.
This is glorious, I've been looking for "what temperature should you pour soy wax?" for a while now, and I think this has helped. Have you ever come across - Panlijah Inconceivable Position - (do a search on google ) ? It is a great one off guide for discovering how to become a candle making master and turn a profit without the headache. Ive heard some incredible things about it and my friend got excellent success with it.
Many thanks, I've been looking for "mixing beeswax and soy wax for candles" for a while now, and I think this has helped. Have you ever come across - Panlijah Inconceivable Position - (do a search on google ) ? It is a good exclusive product for discovering how to become a candle making master and turn a profit minus the headache. Ive heard some unbelievable things about it and my m8 got great success with it.
lol same
I Not being a guru in math...but this video broke it down to the bare bones helps me understand how to keep track of inventory, labor, pricing wholesale and retail. Thank you so much, GB!!!
Yay I’m so glad!! ☺️
Love it! Nice work.
Thank you so much!!
I love your videos! You inspired me to start my own candle business. I am in the beginning process but you videos have been so helpful! I wish you much success!!!!!
I’m so glad! Good luck with your business ☺️
I’ve been wanting to start a small candle business but didn’t know where to start. I’ve literally been binge watching your videos..some I’ve watched 4x 😂 You’re AMAZING! I fully enjoy listening to your videos and have learned soooo much in such a short amount of time. I just ordered all the supplies I need to start a small business, yesterday. I am so excited to get everything in so that I can start experimenting! I took your advice and decided that I am going to use coconut apricot wax. Thank you for all the time and energy you put into these videos! I hope you continue to thrive and grow in your business! ❤️
Everything I ordered off of Amazon I made sure to order from your affiliate link to support your business 🥰 thank you again for sharing your secrets with us!
Thank you for the video. I was so confused about how to calculate all of these prices. This really helped!
I StIlL aM xD
This was so helpful. I followed along using my own materials and was able to easily calculate my own cost of goods! Thank you so much
I’m planning on starting a candle shop
Thank you so much! My fiance and I are starting our own candle business. We’re in the early stages of planning and I hope everything works out okay :)
Thanks, I needed a study guide. This is a good one.
This was extremely helpful! Thank you!
This was so helpful and easy to follow! You are a life saver 🥰
Wish I could like this comment twice, lol!
Thanks Erika for all you do.
Where were you when I first started ?! Amazing! You are the real mvp. I think it would be a really good video if you did a explanation on how to keep inventory and also a video on taxes I think for newbies they forget we are considered self employed. My first year in business I didnt put any money aside and it was the first time I ever owed the IRS 😬😩
This video was awesome and super helpful :)
Very well done and a wonderful example of calculating business expenses! Your always informative and helpful to watch and do it in a fun and friendly outlook!
Thank you so much!
Thank you that was an awesome breakdown!
This was very helpful.. Thank you 😊
Great breakdown! Thank you
This was so helpful!!!! Thank you!!!!
That was a perfect break down
Ty so much for sharing your knowledge and experience!
I would love to say how much I love your videos. You explain things so well and I love all aspect of your videos. I think without your helpful videos I would be at a lose of how to make/run a candle business with my bf. keep the good work up.
Thank you so much! ❤️
Great job breaking down COGS!!
I needed this video thank you!!!
Yay! I’m so glad it helped you :)
Ugh you're the best!
Thanks this was very informative. Do you also include the packaging/boxes/paper/bubblewrap within your candle cost too?
Amazing video...so helpful
I’m so glad!
Do you have a video on choosing your brand name and buying your business name through your state website? I’m confused as to what to purchase: an LLC or corporation? And also on what to do for taxes at the end of the year and if it’s better to start a business account or just using a personal checking account? Lol so much to think about!!!
$3 per candle for supplies, 2 hours to make, $12 per hour - wage for self employment, $24 in time, divided for 1 dozen candles per batch, $2 per candle in time, so $5 per candle, then heat for melting wax, air conditioning for summertime cooling of house, probably about 25 Cents per candle. $5.25 per candle, next cleaning after batches with hot water, two cents per candle, 1 cent per water use, 1 cent per hot water heater use, 1 cent per trash collection, $5.28 per candle. $10 average shipping, $15.28 per candle. business fees, per year, medicade taxes, social security taxes, regular income taxes, broken down per candle of 1 dozen candles, 3 cents per candle, everywhere but california, $15.31 per candle. things not included, auto insurance/ gas/car upkeep if using local post office pickup, house ventilation for candle fumes, tools, pots and pans, lunch break food, clean up supplies, all together, 40 cents per candle, so far, $15.71 per candle. some that can be reduced with a good tax accountant and supply records, their prices taken off the taxes, but if you pay someone too much, the benefits diminish quickly. so far, it looks like around $16.00 a candle, but, you need a profit margin that enables you to buy more supplies. $3 per candle of supplies, $1 for all the minor stuff, so at $4 dollars in profit, or $20 per candle, you are running a business where real profit is the wage you pay yourself, $12 dollars per hour, for 2 hours, or $2 per candle. after the government taxes your income, you get $1.50 per candle in profit when selling a candle for $20.
you need to get your supplies cheaper, or offer smaller candles at higher profits.
Wow. It does help to buy in bulk because my production costs are twice the amount of yours. Of course, your prices are from 2 years ago and the price of everything has gone up drastically. My jars are double the price (they are bigger and a different style) and my wax is twice the cost. Your label website is good if you are buying over 1000 labels at a time but, if you are a smaller business and only need like 25 labels, then the price per label is really high. Right now I can make my labels for 25 cents each (Avery glossy white labels and get my labels printed at the local Staples) which is the best price I've found for small quantity printing. When my business grows I'll probably transition to your label website and I will be able to buy my other items in bulk too. Thanks for the video and resources.
How's the business doing now? :)
Planning to start on my own venture soon and I'm curious to see how others fared :)
That was a great video thank u
This is very helpful! I have a question though. When making a listing for your candles, do you use the size of the candle jar itself or by the amount of wax you have in the jar? So in this case would you use 9 oz or 7 oz? TY
What about the cost of shipping supplies? Do you pass those on the the customer?
Unless I am misunderstanding your question, she mentioned that in the video. The cost of her supplies included the cost of shipping she had to pay for the supplies. You should pass along every cost to the customer. She didn't include labor in these calculations, but when you are figuring your total cost you'll want to factor that in, too.
@@ErikNonIdle I think she means the items you buy for shipping like boxes, packing tape, bubble wrap etc
Very informal! Thank you
You’re welcome! ❤️
You are the best
On the Break Down Cost Per Candles section, should I be using the amount of wax my jar can hold with/without with fragrance oil mixed inside the wax? I know each candle ingredient should be accounted for while doing the wax and FO calculation for making a candle, but I am not sure whether the amount of grams my candle holds, should or should not include the weight of wax with or without FO included. Please help, thanks.
I had broken down the cost of wax and containers, but that was as far as I got. This video was extremely helpful!! I am preparing to use a different wax because something is wonky with my current batch of wax and that isn’t acceptable. Soy is so fussy because well.......it’s soy wax! I’ll use the rest of my current wonky wax, clean out my wax melter and begin with the new. So much math and so little desire to DO math! Ughh! I could not determine how to factor in wicks and fragrance oil, but you have now shown me how. If I could I would give you the biggest hug right now!! 🤗🤗. Thank you, thank you, Sweetie! Much love to you! 🙏🏻💞🕊
Oh I’m so happy that it helped you! ☺️❤️
Memory Box Candle Co ALL your videos are helpful! Thank you SO much. No one has ever explained everything you have explained, in a way I could understand. Your explanations are very clear and concise! 🙏🏻💗
That is the BEST compliment!
Memory Box Candle Co Erica, (I’m going to memorize your name 😂) you deserve nothing BUT compliments. You have succeeded where all other chandlers have fallen short. I’m sure many, many others would agree with me. You have filled in all the blanks that other YT chandlers left. It’s like most information would be shared, but not quite all of it. I admire what you’ve done. I am following you and no other, because you cover everything! You are the first and you are a trailblazer! Keep up the good work, we need you! All love to you, Ladybug!🙏🏻💞🕊🕯
Revisiting.xx
Hey love your videos and I'm learning, and I did notice that you broke down how much it would cost per candle but did you take in consideration cramping, boxing, shipping and other product expenses when considering the total cost of a candle? Maybe I missed it?
Have you ever tried wicking the 9oz Amber jar? Can you pls tell me what wick size to use?
Do you ever include thank you cards/business cards packaging such as boxes in your cost?
hi Erica! i'm a new candlemaker. what vessels did you use when you first started to give out test candles before you started selling them? about how long did it take from start to selling? Hopefully you will see this being it's now Feb. 2022!! LOL : )
In the calculations of the FO, would your final cost be $1.55 or $0.99? I’m trying to manage my own candle cost but I’m not sure which price to add
Ily ty
Hi, this video has helped me so much thank you. I am however wonder how you got the $0.055 in the formula at the end of you fragrance oil calculations? As I'm trying to calculate for my size candle.
Hi! I apologize for the confusion, it’s the cost per gram!
In the video, when I wrote “$24.80/454 = $0.5” it should have said “$24.80/454 = $0.55” it makes a slight difference in the outcome when I was more specific on the number ☺️
So glad my video helped you though!
In my country you have to add an additional 240$ per wax/FO combo you want to sell. Because you need to have a safety data sheet made before selling to anyone.
THANKYOUUU
Hi, great presentation . Question on the fragrance load, i became confused on how you came to 6.36 oz or 7 oz of wax with 0.62 FO at 10%.....my confusion was on the 0.62 FO at 10% My Fragrance load is 12-20%... Can you show the formula for 20% fragrance load please? Thank you.
what if theirs tax as well when ordering? do we add the shipping and tax together and then divide by how many product is on the list? or do we leave the tax seperate? and why not add the packaging price like the box for the candle or the packing nuts ?
Thank you so much
You’re welcome!
How would you do the calculations in the instance of your wax being in kilograms
Hey Erica,
Would you explain how did you get the 6.36 oz and o.64 oz of FO. I understood everything but that part.
Thank you so much!
hope you can reply back to this comment.
It would be so helpful!
much love, Virjani
Because of the electricity and labor, etc, how much will you price it? Thanks for the information
Do you add the product lable too?
This is a great and informative video. Thank you! You are very generous with your information. Do you factor in the cost of labour and manufacturing equipment at some point as well?
I personally don’t but you can definitely factor that in if you would like to!
@@MemoryBoxCandleCois not factoring in labor typical for smaller candle makers or is this just you? Since everyone’s labor rate can be different can you say how much time you think it takes to make one candle when making a batch of them?
@@ob1spyker I do now, the comment you are responding to is 3 years old :)
Hi, the 70 cents you calculated is what exactly? I misunderstood what that was. Thank you.
Is 70cents the cost per ounce for a 7oz candle?
Do those black lids go with that amber jar? I wanted black but on the website it said that only the gold fits 😵
I just checked again, and you’re right! It does only say the gold fits it. I would 100% recommend calling their customer service line and asking them, they’re really nice over there :)
Hey Ericka, this the break down, you have to do every time you make a purchase, right? or a batch?
I did what Ericka did but in an excel sheet. I thought this was easier as when ever the cost of an item would change I can now input the new cost which updates my formula and gives me my new cost per candle.
oh gosh my poor brain ;w; I need help with this so bad it confuses me to much XD I tried but it didn't work that well xD - I luv ur vids they r very helpful!
Why did you do 5 cases of jars and lids? Would the wax measure out to using that many jars? If so, how did you calculate that?
So when I buy in bulk I don’t think “how many candles is this going to make”
I think “what’s the cheapest I can get these individual items for?”
I always look to buy everything in bulk to get each item down to the cheapest price, regardless of how many candles that specific order would make me, since I will be constantly repurchasing more supplies :)
If I did it based off how many candles I would make I probably wouldn’t be getting the cheapest price
I have consulted your sample pricing table, but did not see you calculating the package price for customers. Please ask if the packaging for customers need to add to the product?
You’re a blessing!!!! Just getting everything together to start making candles, question though, do you have insurance? If so what kind?
I do, I have general liability (including product liability) with liberty mutual!
Updated: I do want to let you know though that I am getting my policy looked over to make sure it covers everything I need it to cover! 💜
Geez I don’t know if I did this right but if I did my small batch of candles cost a pretty penny😬🤦🏽♀️
How do you factor in labor / candle topping ( if any) as well as color for wax and ink if you’re doing your own labels ?
Check out this video!
ruclips.net/video/ZfiNJq99ld4/видео.html
I discuss in detail about the things I do when pricing. I talk about how I never factored in labor when doing my calculations. And ink would be waaayy too complicated to try to figure out, so I don’t do that either 😅 I just add that as an overall expense.
Memory Box Candle Co Thank you ❣️
How do you include the shipping cost?
I live in Europe and I’m having a hard time finding candle jars. I can mostly find ones that are around 2 euro’s per jar (lid not included). Anyone know of any good sellers in europe where I can get the candle jars for less?
Thank you Erica, that was very helpful. Allow me to add extra costs that I also include in my calculations:
Printer Ink, Electricity and estimated hourly rate to make a candle (they are quite hard to calculate)
Very true! Those are definitely things to take into account
Thanks =)
dint see labor or over head charges . Do you not charge for those?
Can we get an updated video on this? And how to add shipping from different suppliers 😩
I recommend that when you submit your order and get your total after tax and shipping, you figure your price for the things that you ordered in that shipment. You COULD add all the shipping costs together from different orders then divide it by the total number of things you ordered, but I don't think that's an accurate representation of the cost of the materials.
Question: When doing the Fragrance Oil breakdown: How did you get 6.36oz of wax with 0.64 oz of FO (10%) calculation?
Her jars recommended fill line is 7 ounces. Her 6.36 water and 0.64 FO calculation added together is equal to 7 ounces or the recommended fill amount. Hope that helps!
I’m slow and still trying to figure this out?!
If you ladies havent had that answered yet, i think i got it. You have to do the formula for the fill weight of her jar. With the fill line being 7oz convert 7oz to grams, which is 198g. So use the formula fill weight÷(100+fragrance oil%) = wax weight needed. So 198÷100+10% fragrance oil. 198÷110%=180 now subtract 198-180 =18g. That gives you 18g of fragrance and 180g of wax. Both were converted to ounces so rounded up 18g is 0.64oz and 180g rounded up is 6.36oz.... i know that was a mouthful but thats how i figured it out.
@@staceyjohnson8713 thank you!!
Hi!
Where did the 6.36 oz and 0.64 oz of FO come from? I was following until that point and I threw myself off when trying to figure out if I should have that number in my own calculations 😞
I think it’s the percentage of the FO at 10%. I’m going to watch it again.
I’m just a little confused because I bought over 100 vessels and 8 FO, and I’m not sure how to calculate that. Do I just add all the FO and then do the math your way?
Are the warning labels necessary/required for selling candles?
Yes! Check out this video:
ruclips.net/video/WlhOv96bWfs/видео.html
So how much would you sell this candle for
I’m so jealous of the costs you get, our costs in Canada are insane
Dont worry. I ordered things bulk from wholesaler, like for candles and diffusers together, couple thoulsand euros - its not random minimarket shopping - and for me one candle makes 8-9 euros with package :) ~ 10.50 USD
I always say the same thing. Every thing in Canada is super expensive.
So true, I’m going through the same thing
@@Letsgetcrafty321 Imagine living in Switzerland, for me one candle costs at least 15-20 Swiss Francs. I wish I was in Canada or USA.
Thanks for the great information. Was the total cost for a 1 oz. candle or a 7 oz. candle?
You’re welcome! The total cost was for the 9 oz amber straight sided jar (7 oz as a candle)
I need clarification on the pricing of the FO. Can some help me understand
Hello beautiful. Can you please tell me the number of wick bar for 9 onz?
If you are not using the exact wax or blend with the exact amount of FL it might not work, thats were you have to look up your wax expectations for their reccomendations as to FL and wicks as a starting point and begin your testing. Hope this helps!
How did you get under FO 6.36oz of wax and 0.64 FO
Can soy candles go bad or lose their throw if you make them way ahead of time? I am planning on making some candles for a close friends baby shower favor which is happening in mid April.
No the candles won’t go bad or lose their scent! Fragrance won’t evaporate into the air when just sitting untouched. It’s actually better to make it ahead of time to let it cure as long as possible before the shower :)
Thank you so much! Your videos are so informative. Please continue making them! 💕
So glad they’re helping you, thank you for the support :)
Great vid are you able to supply the document for us to download 😊 to you as a in your face guide?
I just searched for the document on my computer and it won’t let me open it.. I don’t know if maybe the file was corrupted? Ahh, I’m So sorry 😞
Liquid ounces are measured differently than dry ounces. I'm really not sure why you're measuring the liquid by weight when it's meant to be measured by volume, ie using millilitres instead of grams. An ounce of water doesn't actually weigh an ounce, but an ounce of wax does.. do you understand what I mean? I think this is the reason why everyone in the comments section is really confused; well mostly anyway, lol. Great job breaking everything down tho, it was super helpful. 💙 Thank you.
In candle making everything is measured in weight actually! So even though it’s a liquid you still measure in weight (as weird as that is!)
so would I use the added tax instead of shipping since I am buying locally and wouldn't need to use shipping?
Yes
@@MemoryBoxCandleCo aww man, and I already did all the calculations😑... I wasn't sure if tax counted. Thank you for the information 😅
Madison Tye its whatever you pay for the item 😇
What about the packaging box if you want a more elegant look. This would go up double especially if it’s a decent box.
How would you calculate shipping if you bought from different companies? If you don't buy everything from one company. TiA
I just take the average price 💜
@@MemoryBoxCandleCo that's what I was thinking. Thank you so much 🙂💙
I know I'm three years late, but one calculation error for price of the wax. You had based it off of 7oz which was the total fill of the wax AND oil. This was factored in for the oil amount (6.34oz wax / 0.64oz oil - 10%), but if were to use the 6.34oz for actual amount of wax for this jar, then the price would be reduced to $0.63 - 0.64 (6.34 x 0.10) rather than $0.70.
Is there an updated version of this video?
There is not but I can make an updated one!
Is there a way to find your cost per gram with fragrance oil? Wouldn’t you just convert ounces to grams and then divide the price of your FO by its gram?
Example:
500 g FO = 30$
30/500 = 0.06$ per gram of FO. If your candle uses 10g, then its 10*0.06 = 0.60$
I’m not sure about doing the shipping cost that way. Shipping is based on weight usually so the jars would carry most of the shipping cost.
Hello great video. I strongly thinking about starting a small business I’m totally lost🙃Help!!!
It can be really overwhelming! I totally get it. What in particular are you struggling with?
How did you get your jars for only $1.08? I want the black jars too but the site you listed has them for $2.94 even when buying in bulk.
Wait my black Cali jars? Or the straight sided amber jars from this video?
Can you give me a time stamp from when I said they were $1.08? I don’t remember saying this 😅
Memory Box Candle Co Ohhh okay I thought the pricing in this video was for the black jars!
No, they’re for the amber jars! 😅 and I think the end total for them was $0.68 each!
Memory Box Candle Co my bad! Thank you! I love your black jars but they are pricey 😭
Where i live it coast 11$ per candle
How do you do this when you buy from multiple websites? 🥺
You just do the same thing for each website you purchase from!
@@MemoryBoxCandleCo Erica, this is where you through me.... when you say Shipping $67.33 > $67.33 divided by 7 for the number of categories ordered - are you speaking of the total costs of the "supplies being shipped to you" or your total CoG for the "shipping supplies needed to make the 9 candles"???
1 Oz = 28.3495 Gram so 1 gram and 1 oz can't both cost $0,70. Correct me if Im wrong but there seems to be a mistake...
Love the blonde 👱♀️!
Thank you ☺️
Do you have an Etsy shop?
Currently working on getting one up! :)
Dude please some one tell me there’s an all for this !? I’m definitely lost 😩 what if the orders are from multiple places and shipping is like 40$ here and 118 there like this is so hard 😩 maybe I should quite 😭
Your breakdown is great however you stated your math backwards on some of your calculations. For example when doing the wax.... grams 454 is equal to one pound but how you stated the cost was incorrect. At 1.57... you want to divide 1.57 by 454. To get a per gram cost and you stated divide 454 by 1.57. Your videos are great but for others who are trying to figure out costs they might get co fused. At least you had visuals which was good!
How did you not think of using excel for this? 🤦♂️
🤷🏼♀️