Candle Business Tips
Scented Candles can turn any environment into a relaxing and magical place that evokes the senses. Candles have become a staple element in home decoration, relaxation, meditation, therapy, gift-giving, and more. They are also used to create a more romantic atmosphere, enhance certain moods, be an energy outlet, and symbolize purification and enlightenment.
Have you ever wondered how profitable a candle business could be? Because almost every home in America uses candles as either decoration or fragrance, it could be a successful business venture that you can start right in the comfort of your home.
1. Setting Up A Candle Business
Currently, there is a considerable market for artisanal candles of all kinds. According to Chron.com, candle sales in the U.S are estimated at $2,3 billion a year, with most of the sales taking place during holiday seasons. If you’re an eager entrepreneur looking to create a practical and hot product, homemade candle making is an easy and useful DIY skill set that anyone can learn.
Some notable benefits to consider:
- Making candles requires a low investment of money. Even though homemade materials tend to be a bit more expensive, you could be starting with as little as $200-$300 dollars.
- The recipe for candles is pretty basic and straightforward. You’ll just need to get creative to make it unique.
- There are endless types of candles and possibilities. It’s so easy to customize this type of product.
- You can market your product to fit any holiday or special occasion like Christmas, Easter, Valentine’s Day, Thanksgiving, Mother’s Day, birthdays, etc.
2. Business and Marketing Strategy
Do you feel ready to venture into the world of candle entrepreneurship? With the right tools, a candle making business plan, and clear objectives, you can move forward to create your income stream using your DIY skills.
3. Quality and Cost
Materials, packaging, and labor are your product costs. But you shouldn’t forget the price of gas expenses, electricity for lighting, the internet to fulfill orders, postage, and any business rates like social media, business cards, and advertising. Costs tend to reduce as you buy in bulk, in this case, like scents, color, molds, wax, packaging boxes, stickers, and others.
4. Pricing Strategies
An essential part of any startup is choosing how to price your product? We often think the price is a set number or formula, but t is a strategy we get to choose most of the time. These are the three primary pricing strategies you should consider:
- Penetration strategy: If you find it more challenging to sell the product in big bulks, you should opt for a pricing strategy. Setting a low price that is competitive and attractive to consumers.
- Follow strategy: If your product is having trouble differentiating, setting the same price as your competitor is the most comfortable option.
- Skim strategy: Setting a high price to reinforce and differentiate your product, value, and innovation.
Before choosing your pricing strategy, it is essential to understand your product costs thoroughly. For example: If you spend 90 dollars on material, make 30 candles. It has cost you $3 per candle for the materials. Later, you will have to factor in other associated costs and evaluate your strategy’s good pricing point.
In today’s day and age, setting up an online presence is the easiest and fastest marketing strategy when done correctly. Many lifestyle brands have found great success in building a large following on social media. Create a publication with beautiful images related to your brand, prepare photos of your candles to show them to customers, and reach a wider audience. You can also use Instagram to reach out to local influencers and offer a behind-the-scenes look at how you make your candles.
Although selling online is an ideal avenue for merchants, don’t be afraid to try trading in real life. Homemade candles are compact and easy to adopt, making them ideal for selling anywhere. Your sweet-smelling home décor items are ideal for display at flea markets and pop-up shops, allowing merchants to get in-person feedback directly from potential customers.
You can also get your product displayed for sale in local stores and gift shops. Many shop owners will agree to a consignment for a percentage of your sale. This is a great way to get word of mouth promotion around and result in a significant profit.
You’re not sure where to start? In addition to advertising and marketing, you must have branding for your product. Loads of companies learn how to differentiate themselves and offer something unique, thanks to branding only. Your brand includes colors, logo, fonts, having a clear image, and a brand vision.
Branding can also extend to the type of product or niche you are catering to. There are many types of candles you can explore when creating your plan for your homemade candle business. For example:
A growing segment of buyers is concerned about the materials companies use to make their products, especially animal origin ingredients. Essential candles often contain animal by-products like beeswax, which is undesirable for some consumers. This is where vegan candles come to the rescue! Vegan candles use different formulas that use soy wax, plant-based waxes, essential oils, and natural fragrances.
You must be mindful that, like any other business, there are risks. You must always be attentive to new techniques and give yourself the space to invent, create, and especially to learn.