Why candle pricing goes wrong
Most new candle makers add up the wax, fragrance and jar, double it and call that the price. That leaves out the three costs that make candles tricky: the time each batch takes, the packaging that keeps glass safe, and shipping a heavy, fragile parcel. Leave those out and a candle that sells well can still lose money.
Step 1: Cost the materials per candle
Work out what goes into one candle, using what you paid for each supply divided by how many candles it makes. For a typical 8 oz soy candle:
| Material | Cost per candle |
|---|---|
| Soy wax | $1.20 |
| Fragrance oil | $0.96 |
| Wick and sticker | $0.12 |
| Jar and lid | $2.10 |
| Label and safety warning sticker | $0.25 |
| Materials | $4.63 |
Your numbers will differ, so use your own supplier prices. Remember the safety labels many countries require on candles.
Step 2: Pay yourself
Time a full batch, from melting and pouring to curing, labelling and cleaning up, then divide by the number of candles. If a batch of 24 takes three hours and you value your time at $20 an hour, that's $2.50 per candle.
Step 3: Packaging, shipping and overhead
- Packaging: a box and filler to stop the glass breaking, about $1.10.
- Shipping: a glass candle often ships at 1–2 lb. Use your real average label cost; in this example it's $7.80.
- Overhead: equipment, test burns, insurance and software spread across your monthly sales, say $0.60.
- Ads: what you spend on ads divided by sales, $1.00 here.
Total cost per candle: $17.63. That's nearly four times the materials alone.
Step 4: Solve for the price after fees
Etsy's fees are a percentage of the price, so use this formula rather than adding fees at the end:
Price = (total costs + fixed fees) ÷ (1 − percentage fees − target margin)
With free shipping on Etsy (9.5% plus $0.45 in fees) and a 30% target margin: ($17.63 + $0.45) ÷ (1 − 0.095 − 0.30) = $29.88. Round to $29.99 and you keep $9.06 per candle, a 30.2% margin, on top of the $2.50 you've paid yourself. The break-even price is $19.98.
Step 5: Check it against the market
Look at similar candles, same size, wax and style. If yours is priced well above them, look for savings before cutting the price:
- Sell sets or larger sizes so one shipping label covers more product.
- Buy wax, jars and fragrance in bulk once a scent sells steadily.
- Pour bigger batches to cut labour per candle.
- Offer local pickup or markets, where there's no shipping at all.
Common candle pricing mistakes
- Forgetting failed pours and test burns. Add a small allowance for wasted wax, cracked jars and testing new scents.
- Using the cheapest shipping quote. Price with your average label, including the heavier parcels to far-away zones.
- Charging the same for every scent. Some fragrance oils cost twice as much as others; price premium scents higher.
- Ignoring fees on shipping. Etsy takes its percentage on delivery charges too, so build shipping into the formula.
Wholesale candle pricing
Shops usually expect to buy at about half of retail. At $15 wholesale, this candle's materials, labour, packaging and overhead of $8.83 leave $6.17 profit per candle, with no shipping per unit or Etsy fees. If your wholesale price doesn't cover costs and leave a profit, your retail price is too low.
Plug in your own candle costs and get the price that hits your margin.
Open the target price calculatorFrequently asked questions
How do you price a handmade candle?
Add materials, labour, packaging, shipping, overhead and ads per candle, then divide by 1 minus your platform's percentage fees and your target margin.
What profit margin should candles have?
Many makers aim for 25–35% net margin after paying themselves for their time. Heavy shipping makes margins thinner than many handmade products.
How much should I charge wholesale for candles?
Shops usually expect around half of your retail price. Check that the wholesale price still covers your costs and leaves a profit.