How to price your candles for profits

How to Price Your Candles for Profit (With Free Calculator)

🕯️ Why Pricing Your Candles Properly Is Non-Negotiable

You’ve poured, wicked, labelled, and wrapped your candles beautifully. But now comes the part that can make or break your business—pricing.

Most new candle makers either:

  1. Underprice and make zero profit
  2. Overprice and scare away buyers

This guide will teach you exactly how to price your candles for profit—with formulas and examples.

Whether you sell on Instagram, via WhatsApp, or at weekend pop-ups, this guide will help you make smarter pricing decisions for long-term sustainability.

🧭 What You'll Learn

  • Real cost breakdown of a handmade candle
  • How to calculate profit margins
  • The psychology of premium vs. budget pricing
  • GST, packaging, delivery costs

🧰 Step 1: Understand Your Real Costs

Before you price anything, you need to know your actual cost per candle.

Break it down into 3 categories:

🧪 1. Raw Materials

  • Wax (per gram)
  • Wick (per unit)
  • Fragrance oil (based on % used)
  • Dye (optional, per candle)
  • Jar or mould

📦 2. Packaging

  • Box or outer wrap
  • Label printing
  • Stickers or ribbons
  • Warning labels

⚙️ 3. Overhead & Tools

  • Electricity/gas (if home studio)
  • Equipment depreciation (melters, scales)
  • GST if registered
  • Time/labour (your hourly wage)

🧠 Add all of these to get your cost per candle (CPC)

💡 Step 2: Add Your Desired Profit Margin

Once you know your CPC, add your margin.

🔢 Formula:

Selling Price = Cost per Candle + (Cost x Markup %)

🎯 Example:

  • CPC: ₹85
  • Markup: 100%
  • Final Price = ₹85 + ₹85 = ₹170

Most candle businesses in India use 80%–120% markup depending on:

  • Brand positioning
  • Scent profile (premium oils = higher MRP)
  • Target customer income

🎨 Step 3: Consider the Brand You’re Building

Brand Type Typical MRP Range
Budget gifting ₹199–₹349
Mid-range self-care ₹399–₹599
Premium handmade ₹699–₹999+

Your pricing should reflect:

Quality of ingredients

  • Type of wax (Luxury soy = higher price)
  • Fragrance oil (essential oils = premium)
  • Jar style (custom = higher perception)

🎯 Bonus tip: Customers pay more for candles that tell a story.

🚚 Don’t Forget Delivery & GST

Many makers underprice because they don’t include:

  • Shipping or delivery box cost (₹30–₹60)
  • Courier fees (₹40–₹100 per order)
  • GST (if you're a registered business at ₹20L+ revenue)

✅ Add 10–15% buffer to account for these logistics when calculating MRP.

📦 Pricing Example (Indian Market, 2025)

Item Cost (₹)
Wax (120g) 18
Fragrance Oil (10ml) 25
Jar 32
Wick + Label 5
Packaging 20
Total Raw Cost 100
Overhead (5%) 5
Profit Margin (100%) 105
Selling Price ₹210

 

📊 Wholesale vs. Retail Pricing

If you’re selling to:

  • Shops/Resellers → keep 50–60% margin for them
  • Markets/pop-ups → add ₹50–₹100 to cover stall fees
  • Online → factor in platform commissions (10–20%)

🧠 Always create a tiered pricing system:

  • MRP (retail)
  • B2B price (bulk)
  • Festive/promotional offer price

🤝 Why Makers Trust Candle Making Supplies India

  • Beginner kits with raw cost breakdown
  • Labels, jars, and tools that need no trial and error testing
  • Support for growing small brands across India

🛒 Build profitably: Explore Business Kits & Supplies

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