How to Build a Candle Business
Candles can liven up a house with a romantic ambiance and fresh fragrances, and make great gifts for all occasions. Entrepreneurs who have an interest in crafts and home improvement can start a candle business. They can even manufacture candles at home and provide home furnishing stores and local residents with their beautiful creations. Understanding the manufacturing and distribution process affords candle companies of all sizes the opportunity to build a lucrative candle business.
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Instructions
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Select a space for candle making. Those who do not have a separate room in the house can make a work space in the garage or consider working with a partner who has space. Finding a dedicated area is important because it gives candle makers the opportunity to focus on the task of making their product with limited outside distractions.
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Choose candle making supplies. Inexperienced makers can simplify the process by buying a candle making kit (see References 1). The kits come with all the basic materials. Buy one kit and practice to perfect the manufacturing process. Consider buying candle making supplies separately if it lowers the price without sacrificing quality (see References 2).
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Create company and product names for branding the new candle business. Entrepreneurs must differentiate their products from the competition, and the names of the company and product play a key part in creating a unique offering. Consider registering trademarks with the United States Patent and Trademark Office. Run a search first to ensure the chosen names are not already registered. Using a trademarked symbol can also help brand the product.
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Add a label to the candles to complete the branding process. The average buyer identifies with a product by remembering marks or labels, and visitors to a customer's house can also see the label. Include a visible telephone number for the possibility of additional orders.
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Determine an ideal price point. Consider the cost of making each candle and the cost of similar products. Visit stores to find out the typical price of similar products.
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Contact stores appropriate for selling your product and negotiate a contract. Many stores use consignment agreements. This is an agreement whereby the store stocks the product, keeps its portion of the money, and gives the rest to the manufacturer. Ensure that the price chosen allows for both you and the store to make a profit.
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Set up supply agreements with catalog companies. Many direct marketing companies sign contracts and sell products of various suppliers in their publications (see References 3). Make a press release and brochures of the candle product line to make offers.
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Contact network marketers of other products and negotiate a commission sales agreement. These marketers typically sell to friends and family, and can increase local sales.
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Tips & Warnings
Give candles as gifts upon launching the business. Homemakers often show off their home furnishings to each other, thus increasing word-of-mouth advertising.
Incorporate some kind of unique feature into the candles. Both stores and customers always want something different, so uniqueness can improve sales. A specific scent or dye combination is a good idea for a candle business.
Avoid making large purchases of supplies in the beginning stages. Any new business must spend time to develop accounts with stores and other marketers first.
