How to Price Soy Candles

Pricing soy candles

In a social climate where being eco-friendly helps sell merchandise, all-natural soy candles are an appealing product choice for the entrepreneurial crafter. While there are pricing techniques that apply to any product, pricing soy candles has its own set of concerns. Soy candles require special supplies and labor and they appeal to a specific market, which affects pricing. You can account for these factors and find a price that will optimize the chances of soy candle sales being profitable.

Instructions

1. Add up the cost of supplies for each candle. Include the cost of the wick, wax and any packaging. Factor in supply shipping costs if soy wax is not locally available. Write down this total.

2. Time your candle production process and figure out how many candles you can make per hour. Biz Ladies suggests including the time spent finding supplies in this total, since specialized craft supplies can often be difficult to acquire. Divide this number by your desired hourly wage. Add the quotient to your total from Step 1 to arrive at the minimum amount you must charge per candle.

3. Compare the total from Step 2 to the price of soy candles sold at local and online stores. Doubling the cost of merchandise is common in specialized retail, so double your base price and see if it falls in your market's typical price range. Mark the price of your candle up so that it falls within this range.

4. Price different candles at different price ranges to expand your market. Provide a choice of designs and materials to your soy candle buyers so that your candles are accessible to buyers with different budgets. For example, create a line of candles made with cheaper synthetic scents for buyers who can't afford pricier, all-natural candles.

Tips & Warnings

• If soy candles are rare in the market you plan to sell, people may be willing to pay more than typical online prices to purchase a candle in person.

• Mark up your candles enough so that you have leeway to have holiday or end-of-season sales and still make a profit.

• Adjust the price upward for specialized designs, even if the cost or labor is not more intensive. One-of-a-kind designs have their own value and such candles should be marked up accordingly.

References

• Design Sponge: Biz Ladies: How to Price Your Work
• Small Business Administration: Market and Price