Ever wonder how the price is determined for candles?
I'm going to tell you what I've learned in this candle journey!
The first step is figuring out the basic cost of goods- that's how much the wicks, wick stickers, labels, wax, oil, jar and packaging cost me (the candle maker). Of course, when a person is in business for profit, the least expensive ingredients are chosen. Why? So that the profit is higher.
Love that pretty packaging...well YOU are paying for it, it's incorporated in the prices.
Once cost of goods is determined, the maker then has to determine whether or not wholesaling the products is a goal or not. If the goal is to get the candles in a store then the mark up is recommended to be 4x's the cost of goods. So a $10 candle would be marked up to $40. Shocked? I was too. This mark up is designed so that the maker and the store owner share the profits equally...of course, there are other ways to split the markup. Remember this when you go boutique shopping! By the way, none of my wholesale accounts mark up 4x's for you; I"m fortunate to work with people who want to be fair with you too!
If wholesaling is not a goal, then pricing is much more flexible. I've done both wholesaling and selling product on my own website, which allows me more flexibility. I can tell you that I personally do not feel right marking my products up 4 x's. As I've shared, CocoBee was started for a purpose, not profits. What does that mean? In a nutshell, I have chosen the highest quality wax, oils, essential oils and vessels which make me less money.... but bring YOU more quality, greater value and possibly less waste (if you use the refill program).
CocoBee products cost more to make, due to the quality, that's the truth. The reason why there are so many "soy wax" makers and people using soy or paraffin waxes is because it costs less to make and therefore, they make more money. Quality isn't cheap! Healthy isn't cheap!
Another pricing factor is staying competitive in the local candle market. Unfortunately, the price of other local makers candles does affect my pricing. I cannot under-cut myself and I cannot under/over price the local market...so it's a balance. Especially if makers all carry the same items (annoying). I cannot tell you how frustrating it is to see people spending more money on lesser quality products just because of the marketing "fluff".
I hope that gives you a small glimpse of things I consider when pricing my candles! I try to be fair to you all, and also myself! Ask questions, do your own research and spend your hard earned money wisely.