# pricing per oz.



## Stacey (Mar 23, 2011)

I did some research on here to find out how much to charge for a 100% beeswax candle. I found an old thread on the subject from 2009.

That thread indicated that the going rate was $1.00 per ounce of wax in the finished candle. 

Two questions:

1. Is that retail rate or wholesale rate? It wasn't clear in the discussion.

2. Is that still the going rate or has it increased in the last two years?

A brief search on Etsy.com wasn't very helpful. I didn't see many sellers on there pricing their candles by the ounce. 

Ok, a third question (and kind of a dumb one at that!):

3. Does the price change upon the mold used? A straight pillar mold vs one of the more fancy, decorative ones? 

I'm thinking that No, it doesn't (and shouldn't)..wax is wax is wax. Really makes no difference which mold you pour it into. If you're going to price by ounce...it's by the ounce. Not by the shape. It just seemed to me that on Etsy the more decorative the candle was...the more the price was. 

Clever pricing to the unsuspecting consumer based upon visual appeal? 

"It's prettier...but smaller...but it should cost more because it's prettier" :s

What are your thoughts and opinions?


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## honeyshack (Jan 6, 2008)

The decorative molds cost a whole lot more than say the metal geometric molds. Since in any business model, capital costs (a bit short on the true meaning of capital cost but best i could come up with) and the depreication of these costs must be incurred to allow for replacements. Replacement cost must be figured when pricing candles...along with a whole lot of other things.

Included in the costs should be not only the wax, but packaging, wicking, bags, tissue, business cards. Electricity for melting wax, equipment purchases,

As well, there are the business costs, retail...do you sell at craft sales and trade shows, display costs, travel expense, bank costs...

Then paying yourself a portion...got to live some how...

Once you have figured all this out, will give you an idea of where to start with pricing

once i have figured my cost, I add on % for profit and % for retail sales. You have to pay for the travel, booth, etc some how.
Cost of filtered beeswax has been quoted to me at 3.60 under 400 pounds + frieght. Over 400 pounds will be a bit cheaper. 
Even though i render most of my own beeswax, I use this to start my base price for candles (+plus freight) This way if i decide i need to buy wax, price does not change for the end product...and it costs me to render, probably more sine i do not do it in as large of quantities this fellow does.

Remember, you are the comodity producer of the raw product (cappings), the manufacturer of the candle, wholesaler, and retailer...all roled into one. If you were to buy it from a big box store, you can be sure the manufacture, the wholesaler and the retailer all made money. The only person who does not make any money in the business chain is the commodity producer...They get told what they will be paid for the commodity and the commodity producer gets the input prices dictated to them.


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## Stacey (Mar 23, 2011)

Thanks, honeyshack, you bring a host of valid points to the table. Clear, concise and informative comments to put into consideration when pricing. Much food for thought, thank you. 

I do realize that I stated my intial question incorrectly. I realized as I read your response, that I should have asked if the finished candle should be a $1.00 per ounce? Rather than just the amount of wax. A finished price of $1.00 per ounce could generally take into consideration the upfront costs.

I'm pretty small time with my art/crafts sales. (I also work with stained glass, warm glass and artisan soaps and sell at a few art fairs.) I don't have much for a business plan. I'm just a creator who makes way too much stuff to have around the house and am forced to sell some of it in order to keep feeding my habit of creating. =o)

However, I recently had a gift shop owner approach me about having beeswax candles in her shop. That's the purpose of the questions. It's a small rural shop with a focus on buying local. 

Thanks again for the thoughts to put into consideration.


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## honeyshack (Jan 6, 2008)

I started like you. And when you price at the small time community hall craft sales, you tend to keep your prices lower, because the reality is we do not see the big picture. The picture of the true costs of things and what happens when someone wants to buy wholesale. I mean, all we see is the table cost 10-60 dollars. But what happens if you move up to the $400-800 venues? 

My problem came because places like gift shops wanted a whole sale price. But the reality was, my small time craft sale price was really the wholesale price. If that made a whole world of sense.
Since business are wanting your candles in their shops, something has to give. Either you up your craft sale price or, you take a cut and sell wholesale, because the shops will not want to pay your craft sale price.


Start first with your costing and go from there. That is the best advice i can give you.


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## Stacey (Mar 23, 2011)

Wow. That's an incredibly great and simple way of looking at it! 

Case in point: I'm getting ready for a sale at a local art gallery. (different from the rural gift shop owner.) It's an open house and I'm invited as a vendor. So when I sell my soaps there as a vendor, I'll be selling at my normal retail/craft fair price. The gallery will get a small cut of the overall take for the day...which is SOOO totally worth it for the exposure. =o)

BUT: if they decide they want me to wholesale soaps to them to have some in their shop, then we'll be talking a different price altogether. 

Thanks again for be clear on thoughts for consideration.


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## honeyshack (Jan 6, 2008)

Thank you for the kind words.

I started as a rural community hall crafter. And i will never trade that experience for anything. The customers were patient as i changed my table displays, worked through some logistics, honed my selling craft, and even bore with me with the poor candles in the begining. I still do some the the sales. Funny thing is, vendors at these sales would say, I made enough to cover my cost of the table...and they were happy. The further along i got in doing these sales, I began to realize, that was just not enough. I started to realize, both the product and the table/booth needed to be covered so as to not go in the red.

I will never forget the day it really hit home. I was a basket case for two weeks and then a flake during my first show...would they pay that price?

I applied for a "show" The booth was 575, then travel, lodging, meals, and some display upgrades. Total cost to just set up was 1000
It was about two weeks before the big show, I was on my way home with my husband from another community craft sale and we stopped for dinner. I started to get cold feet. What if i did not sell enough to cover my booth costs? Oh crap, what if i cover my booth costs but not the product! What about my time selling?
This started me costing things out, and realizing a 20% increase to cover show costs, adding in to the cost the mobile debit machine, and a few other things, and still take in a bit of a profit.
It was a real eye openner. Now i am ready to sell wholesale. Just got to find a way to get my foot in the door...


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## Stacey (Mar 23, 2011)

Oh man! You are so inside my head right now. On many different levels. I'm glad to know that what I'm feeling right now isn't unique. 

From the "as long as I make enough to cover the cost of the table." statement to being a "basket case" about pricing. 

In fact, I'm calling my little soaping/crafting venture "feeding the habit" The reason for the name is that at this point in my life, I can't see me quitting my day job (professional staffing recruiter) to craft and create. I'm just not that confident. (not YET anyway  ) But if I can make enough money to continue to buy supplies and earn a couple of bucks while developing my base recipe then I'm happy enough. For now. If this thing takes off like I'd like to dream it could, well then, it's whole 'nother story. 

My goal was to have everything done and ready by last night for the big art gallery show next weekend. So I got everything laid out. The table, the table cloth, baskets for soaps and what not. My display in it's entirety...complete. It looked only ok. inch: Of course, I've got some new ideas of what to change up the look of it for next time. 

But then I also started to get those "cold feet" too. Looking at the whole display...thinking up the upcoming show...getting the jitters. Last year, I charged $4.00 per bar of soap. This year I changed up the recipe and have to up the cost to $5.00 per bar. Which seems like a lot. But I've got to do it. Or I'll be digging myself a hole. I went to my husband last night and asked if he thought $5.00 was too much. What if people don't buy? He reminded me that I did lots of research and found that $5.00 is the going rate for cold process soap for retailing. That I had done my homework and to stop worrying about it. He's right...but still even after agreeing with him......jittery-jittery-jittery LOLOL!

Until I sell that first bar on Friday...I'm going to worry it. :waiting:

LOL! Man. Why do we freak ourselves out like that? It's a good thing, I guess. Makes us realize that if we want people to take us seriously and buy our product...we gotta be serious about it.

Anyhow...thanks for posting your experience(s). Makes me feel a little better about what I'm going through right now. Everyone has gotten their start somewhere. That it isn't just because I'm being a weenie at all. I guess if I were to go into with all the confidence in the world that wouldn't necessarily be a good thing either. Part of that one saying that goes something like this: "Do something that scares ya little bit each day."

Thanks a ton for "being inside my head"... =o)


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## honeyshack (Jan 6, 2008)

Ha ha that is too funny  good to know i was not alone in this.
I too am trying to decide to give up my paying job to have a solid go at this. It is a big leap, and a leap of faith Good luck with your venture.
I did up an excel program to help with the costing
I started with wax at $4.00/pound (this might change since i have to buy wax this year and wax and freight are a bugger) (rendered), weighed every candle, and got a cost on each candle for wax. Next was fixed costs (containers, wick, wick tabs, scent and color)= product cost
Then processing overhead (labor, hydro, capital costs) used a % Then added the product cost to the processing overhead to get a processed cost.
Then, fixed retail cost (business card, debit machine, bag, tissue, labels). Then retail overhead (booth cost, labor, profit, travel) again a percentage and it was added on to the total. Then from there i went and looked at the final cost...would people pay it? Final column..selling price...all inall 12 columns.

Hope this helps


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## beemaiden (Mar 1, 2011)

I have also been doing quite a bit of research on pricing and it does seem all over the board. I just have resided to charge what I need to make to cover my costs and time and know that a lot of education will be necessary for some to realize and appreciate the benefits of pure beeswax candles compared to paraffin. I believe that a built in market that doesn't need so much education is an organic one. I also have a variety of price points that will suit different budgets. That being said, I'm not just going to give them away. I just can't afford to. I've spent a lot of time on how to display my candles so that customers can see how they can be used for outdoor entertaining as well as indoor. Only time will tell and I have left myself a little bit of wiggle room. I also have just learned about an app for iphone, ipad and I believe android too that's called Square. There's an adaptater you hook up to one of the above mentioned devices and they charge like 2.75% per swipe. I have no idea how much a mobile debit machine is and would be interested to know how much that runs you. I haven't used Square but am thinking about it. Oh, by the way at the last holiday market I was at $5.00 is what they charged per bar of soap.


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