How much should I charge for my wax melts?

How much should I charge for my wax melts?

One of the most often asked questions is ‘how much should I charge?’ 

This is a difficult question to answer without all of the facts. You need to know how much it cost you to make the product you want to sell and how much profit you need to make.

Every business is different and has differing overhead costs, gets raw materials in various bulk and needs to make different profit numbers to succeed. 

How do I work out how much it costs to make my products? 

A simple example of this is as follows.  

1 box of wax costs you £100 - 20kg (20,000g)

1 bar is 50g so from that you can make 400 bars

The sum you did to get that number is: 20,000 ÷ 50 = 400 bars. 

To work out how much each bar costs this is the sum you need: £100 ÷ 400 = 0.25p per bar

That's your wax cost for 1x 50g wax melt. You will then need to do that same calculation for each item such as fragrance oil, clamshell, colour, glitter and labels and add each one to the 0.25p. 

Anything that is required to make your wax melt bars will need to be included in the price, no matter how small it is.  

Remember you have to include your time to make sure it's worth your while. 

How do I charge for my time?

Charging for your time is very important. It is key to ensure that your business will continue to grow and is scaleable. If you start of under charging it’s a lot harder to make enough profit to reinvest into future products and will also devalue your products. 

An easy 4 step formula to work out how much to charge for your time is as follows: 

 Step 1: How much do you want to make per hour?

Step 2: How many products can you make in an hour?

Step 3: Divide how many products you can make by what you want to earn per hour.

Step 4: Add that number to the cost of your product. 

Conclusion 

It's important to be aware of your competitors and their pricing but make sure you don't undersell your products in a race to compete with them. It's important you are making enough money to be able to reinvest into future products, and marketing to help your business to grow. 

Use the above formulas to help you navigate the tricky world of product pricing for your wax melt and candle business. If you need any help feel free to get in contact with us. 

If you need help learning how to sell wax melts then please click here to visit the Home Fragrance Academy.