How To Price Candles For Sale | Candle Pricing Strategy | New Candle Business Pricing
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- Опубліковано 6 сер 2024
- How to price your candles and other products can be a challenge! There are so many options to price your products. Price your candles high, low, or somewhere in the middle? Do you base your candle price off how much it cost to make your candle? Or, do you price them to sell? The answer to all of those questions is yes! This video and presentations takes a somewhat deep dive into candle pricing strategies. And, my recommendations to new candle business for how much to charge for their candles and other products! Including a candle cost and price example!
Chat/Consult With Wade Sign Up: koalendar.com/e/meet-with-wade
00:00 - Overview
02:57 - Biz Objectives
08:00 - Pricing Models
12:20 - Value Pricing
15:03 - Cost-Based Pricing
20:52 - MCD Pricing / New Business
33:50 - Example/Case Study
44:36 - Final Thoughts/Tips
👩🏾🤝👩🏼SOCIALS:
Instagram: / blacktiebarn
UA-cam: / blacktiebarncandleco
Website: www.blacktiebarn.com
Facebook Group: / thecandlemakingworkshop
Facebook (regular business): / blacktiebarn
💡Email newsletter signup for future candle making tips, resources, new content, etc. Would love to have you: blacktiebarnworkshop.ck.page/
🧧//Candle Making and Candle Business Resources:
CraftyBase (Inventory, Recipe, Expense, and Order Tracking): craftybase.com/?rfsn=3998285....
CraftyBase Overview video: • Best Inventory Softwar...
🧰//LINKS TO COMMON OR HELPFUL CANDLE MAKING SUPPLIES (Great for those getting started!!)
Wick Holders and Clips:nordencandlesupply.com?sca_ref=1972485.DlZFh8FQu5
Rotating Pegboard Display (Wax Melts) amzn.to/3fZDXac
Peg Hooks for Rotating Display (above): amzn.to/3KMvJAv
Thermometer 1: amzn.to/2ZrkvuD
Thermometer 2: amzn.to/3qyg6lt
Thermometer 3: amzn.to/2OJocJX
Thermometer 4: amzn.to/3pyel6B
Respirator Mask: amzn.to/3reMwCw
Color Wheel (for mixing dyes): amzn.to/3pdrUcj
Plastic Stirring Spoons: amzn.to/2VcsYQk
Infrared Thermometer: amzn.to/3q93rG4
Heat Gun (Variable temp settings): amzn.to/2JjvDoz
Economical Scale: amzn.to/33oLWYs
Economical Scale: amzn.to/36cDcGI
Economical Scale: amzn.to/33pxSxJ
Presto Melter with spout: amzn.to/2VaIqwb
Pouring Pitcher: amzn.to/37lK4ky
Wick Trimmer: amzn.to/3fKG7cP
Paper Plates (9”) for color testing/pitcher trivet: amzn.to/2Je8lRe
Paper Plated (6”) for color testing: amzn.to/39osi2y
Glass Measuring Cup (my favorite): amzn.to/37hxL8C
Glass Measuring Cup Set: amzn.to/36ft8wM
Glass Measuring Cup: amzn.to/39lWf3b
Pipettes: amzn.to/2JfOn8S
Product Photo Light Box: amzn.to/33xgqKP
🚍//BUSINESS, PACKING & SHIPPING SUPPLIES I USE:
Camera Gear (Video and Products): amzn.to/3oNiaq2
Tape Gun: amzn.to/3dYUycW
Packing/Shipping Tape: amzn.to/3u7Mb5Z
Packing/Shipping Tape (Option 2):amzn.to/3HgcX23
Packing Peanuts (Environmental Friendly): amzn.to/33VhyZj
White Shipping Box - Pack of 50, 6 x 4 x 3: amzn.to/3agrmxr
White Shipping Box - Pack of 25, 6 x 4 x 4: amzn.to/2MN7okV
Aviditi White Mailing Boxes - Pack of 50, 5.5 x 3 1/2 x 3 1/2:amzn.to/3d4Dbs0
💥//OTHER VIDEOS YOU MIGHT LIKE
Candle Making Supplies for Beginners: • Candle Making Supplies...
All About Wicks: • All About Candle Wicks...
Candle Making Business Basics: • Candle Making Business...
Candle Testing: www.youtube.com/watch?v=pHNaa...
Making Candles at Home: • Candle Making Tutorial...
Troubleshooting Candle Making Problems: www.youtube.com/watch?v=GTq7o...
Company Origin and Beginner Tips: • Black Tie Barn Origin ...
How to Ship Candles: • How To Ship Candles | ...
NOTE: This description and video may contain affiliate links to products I enjoy using myself. Should you choose to use these links, this channel may earn affiliate commissions at no additional cost to you. I appreciate your support! - Навчання та стиль
You’ve done it again...thanks...very informative and wasn’t boring or dry which has been the case on other videos about pricing and finances! Brilliant presentation...
Thanks so much! :)
After spending the last couple of months watching SEVERAL videos from you, Memory Box, Standley, Armatage and few others... Researching information online, reading forums, getting product education, and banging my head against the wall comparing suppliers... the information in this video, at 1:20am, is what finally made everything click for me. Your teaching style is impeccable, but this particular format of content is a homerun. Absolutely needed this video. Thanks, Wade.
Wow. Thanks Ian. I appreciate that. More to come! Hope your continue to enjoy. thanks for being here!
Wade. I can honestly say I’ve learned so much from watching all your videos. I know this video is older, but I’m just getting ready to launch my business this summer and your videos have been the BIGGEST help. I had no clue where to start when it came to all the business side of things because I’ve never started my own business ever and your approach to all of this and how you take the time to explain, break down and give examples makes it easy to understand! I honestly can’t say thank you enough for making these accessible to us at no extra cost. You win the award for best teacher. Hope to have you review my candles someday. Please keep teaching these types of videos based around the business side of this, because they’re so helpful.
Thanks so much and I definitely will!
Your words, Dove, are exactly my words. 🎉🎉🎉🎉 this channel is great.
You have more than earned a Grammy award for exceptional, educational, informational, professional leadership in candle making and building your own small business techniques, tips, tricks, strategies. Huge applause and grateful thank you. Mucho Gracias
Ha ha! Thank you! :)
I work fulltime in healthcare and after listening to this I doubt I'll have the time or money to do anything except make candles for myself...just reality but atleast I can make any scent I want.😊
Thank you so much!!! Your MDC method is very similar to what I’ve been using to get my pottery business off the ground. I’ve been slammed repeatedly by my family members for not charging more but I have a hard time explaining to them why I don’t charge more. It’s not that my time in production is not valuable but I’d rather sell my products at a lesser price than those of the more established artists and have the funds to keep buying the materials I need to make more. My time IS valuable and is the cost I’m willing to put into building my business! Thank you for giving this a name and for laying it out so beautifully! Many blessings to you!!
Thanks Tammy. Yeah, I don't want people to get the wrong idea and that I am suggesting underpricing yoiurself.. it's more about sacrificing early margins at first to try and grow your business and find what works. It's hard to sell at a premium price when legally no one k N own who you are. Lol. I also price "for the future" knowing NY future cogs should come down as I increase volume.
You know I can’t thank you enough for sharing the business side of candle creating -business. I really stink at this currently. I’m learning so much from you. Thank you!
No problem! But don't be too hard on yourself. We are ALL ALWAYS learning more about both the business and making side. The idea is continuing to learn grow! :) Including me, I just share what I can to help!
I am not in the candle industry and I find your channel amazing! ❤️💗❤️
Wow. Thanks so much! 🤗
I’m missing a few costs here... shipping, packing materials, marketing budget, electricity, internet, insurance , fees for your selling platform...It all adds up. I like this method but there are more costs to consider when pricing our products, not just the ingredients of the candle itself. Love your videos!
Oh yes for sure. I mentioned that at some point that the costs in this video is describing direct material costs only. But you are absolutely correct!
This is brilliant. I love the way you take the time to patiently explain in detail the pricing strategy. I have watched a few other pricing model videos by other candle makers but yours is by far a lot more professionally presented, more detailed with examples as reference points and on point. Thanks 😊
Thanks so much. I appreciate that. More to come too.
I was having a mini panic attack over pricing due to the x2 and X4 strategy, because as a new business, I was wondering how I can even break market when no one knows me yet.
Then when you explain in the second half, about different strategies and structures, it gave me entirely new perspectives and I can't thank you enough for it.
My ideas for the future are fairly big, so this allowed me to see the bigger goal and picture. Thank you SO MUCH!!! HUGE THUMBS UP!!!
no problem at all and glad you enjoyed it. Sorry for late response, sometimes comments get buried or hidden from me for a bit as they come in.
I love all of your tutorials! So helpful!
Thank you!
Thank you! Love your videos, all informative and easy to understand.
Thank you! :)
A year into business this is where I have been spinning wheels…profit vs growth. Thanks for sharing!
Np!
This was a true Master Class…extremely valuable! Thank you.
Glad it was helpful!
Thank you for sharing your time and expertise
Np Tara
Love your wisdom and your transparency. Thanks Wade.
Np! 🤛
Thank you! All your videos been super helpful
😁 great! Thanks for being here!
Thank you for all of this information. Your videos are always easy to follow and helpful.
😉
Great and informative...Thanks for all your help
❤
This video was extremely helpful. Thank you!
No problem!
Very helpful, thank you so much!
No problem!
THIS WAS SO GOOD THANK YOU AGAIN.
No problem Cassandra!
This is great. Thank You for Sharing 😊
Thank you so much for putting up this video! I took a lot of notes and it would help me with my candle business. 🙂
🙂np!
This helped me so much. Thank you!
Glad it helped!
Your videos have helped me so much. Thanks 😊
No problem!
As always, brilliant video.
Thank you!
Thank you for your hard work on sharing this with us! What a brilliant lesson. :)
Thanks ines!
Thank you! Very helpful information and refreshing actually to give myself a boost and to jump start my somewhat sleeping home business! 😊👍
Np at all! :)
THANK YOU SO MUCH!!! I learned a lot. I felt like I was back in Accounting Class. I loved that Class. You are a Great instructor. You are passionate, caring & realistic.
Haha. I like accounting too so I like geeking out sometimes. :)
Incredibly valuable. Thank you for putting this informative video together, great content and execution.
Thank you Sarah!
Thanks Wade, another great video!!! I've been struggling with pricing for my products (other than candles) and now with beginning to start making candles. This was sooooo informative and precise. You made everything so clear. I've had people telling me that I need to price items for profit (at high prices) and I don't want to until the business grows more, that's the goal right now is to build a good customer base. Without that, there is no business or profit!!! Thanks again!!!!!
No problem!
Well what a great video again, I have been testing candles now for about two months and today I sat down worked all my costings out to sort out my retail price and was shocked I was to expensive, nobody will ever buy a candle off of me so I was on a downer thinking I've wasted my time until I sat down tonight to watch you tube what a great idea it is so obvious I just didn't see it I'm inspired again thankyou.....
Glad to hear Adrian. I know what you mean. It's easy to get discouraged early on. Key is just to keep pushing through and adapting.:)
Your the best teacher ive listened to. thank you so much
🥰
Thank you so much for sharing that advice with everyone. We're just starting out and this is really useful.
No problem at all!
What a lot of information! Great video. You presented it in a way that was easy to understand. Thanks so much.
Thanks Tammey!
Thank you so much for this information it really helped me and hope me to understand and look at things differently ☺️ Blessings🕊
Np!
Thank you for this video! It has helped me so much!!
Great! No problem Holly!
Thank you so much. This was very informative!
Np! Thanks for watching!
Thank you For this! This was VERY HELPFUL!
❤️
👏 amazinggg. Thank you
❤
Your channel is by far one of the best. I wish I had found you sooner. Thanks 😊
Thanks Jay!
This really helps! I am about to launch my candle business this weekend!!! Yay!! Thank you!
No problem!
Thank you so much for this video! So informative and helpful!
You're welcome!
great vid thank you,just starting out myself.
❤️🤣
ty learned alot
❤️👍
Good explanation. I learned lot from you.
Thanks!
You have such a mellow tone to your voice that I could listen to you all day! You have a wealth of knowledge and you explain in layman's terms, I appreciate all the time you put in with your videos and I have learned so much. Not sure how I can use this in my wax melt business but I haven't launched yet and will try and apply your recommendations. Thank You again.
Thanks so much Roberta. Made me smile. Appreciate the feedback and happy to help.
I am using Inventora for calculating inventory and COGS and etc. Love it. As a just about to launch business, it saved my life
All I can say after watching this video is WOW!!!! Learned so much. Thank you.
Thanks Sherry!
Thank you so much for this video. It is so very helpful, I was just about done with most of the work of pricing but hadn't come to a final decision about it and this really helped me make a decision.
Glad to hear it helped. Thank you for watching. :)
Great information Wade, I do like the MDC approach to start. Makes a lot of sense. Thanks
No problem!
This is so helpful 😭 Thank you so much. Glad that I found your video while I’m still testing on my candles. I’ve been so frustrated with pricing, my cost of goods is pretty high, with the cost based formula it will be overpriced. But now I think I can put a more reasonable price for my candles with your method.
Great explanation!
No problem Amara. Yah, it's easy to be overpriced early on. Don't feel bad. It's common to have high cogs early on
Wow! Thank you so much! I’m getting ready to launch my candle business. The reminder to focus on growth vs profit was freeing. I will definitely use the MDC approach! Thanks again for this content!!
Np! Thanks Laura!
Thank you so much for this video! It is so helpful! I’m starting my candle business and I’m in the process of testing. This has helped me figure pricing out so much better than other videos. I was doing the 4x method and my price was crazy. Your explanations made so much since. Way better method. I love all your videos. They are so helpful for people starting out and very informative.
No problem! 4x can definitely help as yo7 scale but it's not always the best formula starting out.
I haven’t even finished the video yet and I want to say, “thank you!” I’ve been making CP soap for ever now (think decade) and tried starting a small business once. It didn’t work out at the time and with 5 kids it wasn’t worth my time away. Side note-they are why I make soap and they are totally soap snobs at this point 🤣. Am am working on candles also now and looking to a future small business,as the kids have gotten older, to help with income. Late to the party but wanted you to know how much this video helped❤️
Thanks so much Sondra!
This was awesome Wade! I’m almost ready to go to market and this helped
Np! Thanks Nachelle . Love your name by the way!
Value value valuable content Thank you, Thank you , Thank you!! 😊😊
Again i thank u ❤
You're welcome 😊
Thank you.... smart man
❤️
This is the best channel ever. Have been working on starting my candle business for a while. Have relied on your videos a lot. Thank you so much
Thanks so much. I appreciate that. Good luck to you and thanks for being here. :)
GREAT Video and VERY informative. Thank you so much for all the work you did to help me and so many others.
No problem. Thanks for the feedback!
Thyank you for such a great video, we are justbstarting out and I am so glad I found your channel. All of your videos I have watched has been helpful. Thanks again
No problem. Thanks Tom. I appreciate it
Super video. I am just starting out so pricing is my next hurdle. This hasbeen so helpful like all your videos.
Many thanks and every good wish to you for continued success with your own business from rural Ireland.
Thanks Mary. Happy to help!
Thank you so much for this video!! Loved the examples you used it really helped to digest the information thanks
Thanks Raina!
very helpful, I have a much better idea now. thanks
Glad it helped
Very informative
Ty and thanks for watching!
Thank you so much Wade Thomas!!! I am in the pricing phase of my starting business. This was alot of information made simple. For me, I am still a little fuzzy on my niche and market. I want to just sell to anyone who have a love for candles.
Yep. Totally understand wanting to sell to anyone. But it's important to have a specific brand or niche as it will help with your market. It's not required... just easier that way. :)
This is such a great video. I have used some of this because I'm super OCD and for finances, I think you should be. Thank you for reinforcing what I already was using. Yayy thank you.
Yes. I am as well. I really enjoy talking finances but also super important!
@@BlackTieBarn I can tell, your video was well put together and very informative. 📖 🤓
Once again a great video. As someone that is in the very beginning stages of starting a handmade business, that includes candles, I appreciate your advice. I've started the MDC pricing without knowing I've been doing it!
Perfect! Thanks Kat!
Thank you immensely. Your videos are very positive,structured and informative. Thank you for the time you take in sharing such valuable information. I'm looking to start a candle business and your videos have helped it feel less daunting. Bravo!!
Thanks so much. Glad to offer some help
Great 👍 information thanks a lot
No problem!
Thank you for sharing this information, I have struggled with pricing. I retail candles but have toyed with the idea of making my own brand. I find your videos very informative and encouraging..Thank you very much.
Wonderful resource! Your presentations are so pleasant to watch. Very professional and straight forward. Great information. I Thank You for your time in putting these videos together and sharing with the world. Wishing you continued success in your ventures. Thank You again.
Thank you so much Beverly
Wow, that was an amazing video with a wealth of actionable information. Thank you for your time. I’m loving this channel. Your Sir Rock!👏🏾
Appreciate. Thanks so much!
Thank you for sharing this wealth of knowledge. This really amazes me. I have medical background, absolutely no schooling or experience in business, but this exactly how I did it in determining the price for my candles!! I did not call it anything of course. Just used plain common sense. What a relief to know that a great thinker -you, has it the same way I did! 🌸
Awesome Sheila!
Great video bro.
Ty!
You are welcome. You are the boss.
I would like for you to share some useful informations with me bad on how to get my candle business off the ground. I be selling a few once in awhile to people in my circle but I want it to be better than that even though I started over a month ago. Can you?
Wow Wade, this video has provided new perspectives I had not thought about! Do you offer consultations for a fee? I’d really like to talk to you about 2 of my candle types and philosophy for both. I respect your ideas and key understanding regarding pricing of candles. Have you ever offered consultations for a fee? THANK YOU for sharing your unique perspective on pricing candles, I have a lot to think about! Thank you for taking the time to record this video! Please let me know if you even have time for a consult and how much you would charge for like 30 minutes? There is another candle business owner who offers a “$30 for 30” for chandlers who have questions that keep them awake at night worrying about. A very special “THANK YOU❣️” for this thought provoking video! Thank you in advance for your time and response to my question!
I do. Here you go. :)
koalendar.com/e/meet-with-wade
Great video! Very useful. I'm starting a soap and candle business, and it turns out I was already using Future COGS. I've been buying in small quantities to get started, but I've already found suppliers and figured out what prices I will get when I ramp up production and buy in bulk. Since it can be hard to significantly raise prices in the future, I'm trying to get it right at the start, but maybe have an "introductory" pricing.
Trés bien Wade!
❤️
Thank you so much for this video. I'm at the very, very beginning of candle making where I've made a few candles. So I'm just getting my feet wet. I know that I should be practicing the craft 1st still it's nice to see these types of videos as I'm practicing and working on my recipes. Forgive me if I may have missed it in the video but do you research a cost (dollar) value for step 3 of the MDC method or is that simply for identifying who your market and niche is? I was a little confused about step 3 when it came to you going over the example at the end of the video. Also, this video was so helpful to see.
Great information and much appreciated. Challenge we have is that Future COGS have significantly increased due to supply chain issues across the board, including the cost of shipping the supplies and shipping out our products.
Would love insights and recommendations as these increases would normally cause a price increase in a market where candles are really considered a discretionary item and not a mandatory household item.
Hey Joel. You are absolutely right. Cogs have definitely gone up. All you can really do is adjust with them. Customers understand price increases with inflation and economic issues. gotta do what you gotta do to stay in business. They are discretionary purchases but people also spending more time at home. But you do have to adjust with inflation to stay afloat even if it slows down some sales unfortunately
Thanks for the video wade! What is the best website for getting jars?
Your candles looking so rich in color. I got mind looking like that to and I'm beginner.
Awesome!
EDIT: The end of the video answered this for me :)
Thank you for all of your effort into these great videos! I have been binge watching you this weekend. I have a thought... I am wanting to start luxury/upscale brand(s) and I am realizing (from my rich Bently driving friend and Park Avenue friend) that if I want luxury clients/customers, I have to haul a$$ to prove/justify higher prices...which is difficult when you are starting off. It almost makes more sense to possibly start as a middle of the road and then start a luxury line after getting clout. What are your thoughts? It seems like starting with a name like Black Tie Barn, you would be higher end, catering to the more rural area upscale ppl (I live in an upscale farm area...we exist lol). TIA.
This was a wonderful video. Super useful! I have a follow-up question: I assume this strategy applies to in-person candle sales (markets, fairs, etc.). Using your example price of $10 from the video, would you increase the price beyond that $10 to account for the costs associated with the packing and shipping of online orders? I assume you would, but since you didn't address this in the video, I thought I'd ask for clarification. Thanks for sharing your wisdom with the world's candle makers!
Yes usually a good idea. Thanks Laurie! :)
May the good lord bless you. (Or whoever you believe in). You’re amazing.
Thanks so much Mel!
Loved the input!
I would advise anyone to factor in the overhead from the get go. Failing to do so can run a business to the ground in just a few months, which is likely to happen with some of the pricing models you've demonstrated. It is much harder to pump your prices up, if you've never factored that in, than to lower your prices later on.
Especially when "playing with fire" with a product like candles. It only takes one insurance claim from one of your customers. Their retainer fee on lawyers is higher than your life's earnings probably 😅. Any business should factor in their own insurance.
Proper labeling is also key in such a scenario, but still... better safe than sorry! Factor in the overhead in the "MDC" model, along with potential or projected growth (volume discounts/future COGS and number of units sold) and it all blends in really well.
Can literally be a life saving precaution for any business!!
Cheers! 🍻
Keep up the good content! 🤝
Hey Seth. Completely agree and thank you you sharing. I struggled with whether to include more details such as overhead and other direct snd indirect cost. I didn't want to make this single video overly complicated but yes you are right. I tried to stick to more about direct product cost and industry pricing bit you are absolutely 100% correct. Thank you for posting!
@@BlackTieBarn Agreed! Lenghty videos can be overwhelming. This begs for a part 2 then! 😉
Cheers! 🍻
@@sethforpharaoh9356 haha. good point!
My absolute favorite video so far!! I’m very business minded but like many thinking I need to maximize profit early which is wrong way to look. I’m at 8oz candle with about 4.50in cost, so looking at the the 14 to 15 range. Question is cost of boxes? I didn’t see that in there.. and is it best to do a flat shipping, which seem like is around 7 average per candle?
Yah I didn't include packaging and shipping because it varies SO much. I tried to focus mostly on the product itself with this video
I am wondering where or when you figure cost of testing in? I would be interested in knowing your thoughts on start up costs and continued testing costs.
Good question. I track this in the software I use (craftybase). I even made a video about it as well. But I categorize all those costs (which the software helps track) as R&D expense. ;)
Here is testing video but if you haven't yet, check out the entire craftybase video here on my channel as well. It will help it make sense:
ua-cam.com/video/GO7bL1nuqCQ/v-deo.html
ua-cam.com/video/QLvsQeqC-zo/v-deo.html
I wonder if we can presume future COGS will drop in time of inflation and rising freight costs. Being in Alaska doesn’t help either.
No no...that certainly doesn't help you does it!
Thank you so much! I’ve been doubting myself a lot as far as pricing goes. I’ve pretty much been doing as you suggested from the beginning. BUT I was recently approached to put my products in a small hometown store. I’ve been doing the cost x2 x 2 method, which I’m not really a fan of, problem I have is a new special candle that I’m just beginning to make, which is quite costly to make. My promotion price is basically my cost x 2, the problem I have is, what do I now charge wholesale for? There’s no way she can get 2 times that amount in her store. Any suggestions?
Yep that's the issue with using a formula of 2x and 4x early on when your own costs are still. Two options.
1) buy more bulk if you think you can use it and have orders lined up That will lower your costs.
2) start with higher prices and lower as you grow. But this makes it harder and slower to grow.
3) price for what you think is good and will sell...knowing you won't profit much early on. Let the profits come in as your business grows.
Sorry, that's 3 options. :) Ultimately up to you.
I like your product you explain all, if possible i order can you i select or send assorted scents what i mean different scents
hola estuve mirando tu video explicas clamente sos muy buen maestro, he sacado mis costos dentro de los cuales el packashing es bastante costoso, debería incluirse en la fórmula para que nos acerquemos más al costo real, y no tan real porque no he incluido la mano de obra ni la fuerza motríz ni costo de luz y gas!!! entonces mi margen va a ser menor lo interesante aquí al empezar es no tener pérdidas que no te permitan reponer los materiales y seguir produciendo. en mi determinación de costos he aplicado directamente los costos mayoristas en cera y fragancias y recipientes y verdaderamente es notable la diferencia con respesto a los costos normales minoristas que ofrecen los proveedores. Vivo en España y las velas aún no tienen el auge que en USA, no saben lo que se pierden. Seguiré mirando tus videos, aun mi negocio se está proyectando y te he elegido como mi tutor. Muchas gracias. Verás que tengo un canal de youtube que nada que ver con lo que estoy por emprender, Un saludo desde Spain
Laura Tamburini
Thank you very much for sharing this info. It was well done & very helpful.
No problem!
Do you have information on how/who you can buy bulk blend wax from? I mean like skids not just a few boxes here and there . Shipping cost is crazy.
Some suppliers like CandleScience have options for pallets and the shipping costs drop dramatically! Otherwise, going straight to manufacturers is sometimes an option.
I have candles on etsy with free shipping but the cost of sending them is included and it may be hurting my sales. Should I drop price and ad shipping?
I want to start my own candle business. Do you think an introvert with social anxiety can have her own business? I don't want to work for no one anymore. But am afraid to take the first step and I don't know how or where to begin. 🙈
Does COGS include the cost of materials used during testing?
Karen... what a great question. Seriously, very insightful question! It was one of my first thoughts when I first got started. And honestly, I think it's a grey area. I have spoken to 4 CPAs on this exact question and had 2 tell me to calculate as cogs since it's technically part of the work that went into development the finished products. The other 2 said it was less direct and less significant and to charge it to a regular Expense account called Research and Development. My advice is ask yours what they think and then be consistent. I'd be curious what you hear as well. :) Keep me posted.
Thanks again. Great question!