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Votive Costings - A Beginner's Journey

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  • Votive Costings - A Beginner's Journey

    Hi folks,

    Given that the experimenting and testing will never stop, and that I think I have found a Votive formula/recipe that works, natural progression takes me a step closer to the cut throat world of retail!

    Firstly, I realise that I will never make my fortune from making candles, so, as long as I can return a small profit, I'll be happy.

    Without shopping around, and buying in huge quantities, the following costs are based on buying the absolute minimum from 4Candles. I have not included the initial cost of the Votive Molds or Wick Pins, given that they are a 'one-off' purchase and can be absorbed along the line.

    800g Blended Wax: £3.40
    10g Dye: £0.60
    50ml FO: £4.79
    50 x V45/S1-60 wicks: £2.61

    Sub Total: £11.40
    Shipping: £6.25
    VAT: £3.53

    Total: £21.18

    Given that all materials i have purchased so far have been used in experimentation and testing, I don't know for sure, how many Votives (from the molds), I can get from 800g of wax. I'm assuming it somewhere between 13 and 16.

    13 Votive Candles will cost £1.63 each to make.
    14 Votive candles will cost £1.51 each to make.
    15 Votive Candles will cost £1.41 each to make.
    16 Votive Candles will cost £1.32 each to make.

    Obviously, there will be a very small saving on the next batch as the cost of the wick can be excluded. However, this is so small it really isn't going to make enough of an impact.

    It is very unlikely I will ever need to take VAT into consideration as I doubt I will ever cross the threshold!
    Neither do I have a supplier on my doorstep, or within an hour or so from my home. This means I am resigned to paying VAT and delivery charges, regardless.

    Looks like my only friend in cost savings is going to be 'the economies of scale' and 'adding value' to the humble Votive Candle.

    Taking all of the above into consideration, it looks like the bottom price for my Votive Candles is gonna be somewhere bewteen, £2.00 and £2.50, and this doesn't include shrink wrap or labels!!!

    Your thoughts?

  • #2
    That's really expensive... I buy my wax in 100kg sacks and get all my fragrance from the USA.. works out so much cheaper.

    if your votives cost that much to make, it's not worth selling them as you will get no profit...

    What about your gas cost to melt the wax, your time to make them

    Comment


    • #3
      I agree, it is an expensive way to do it, and as I've already mentioned, I will have to look to the 'economies of scale', to get the price down low enough to return a profit.
      A 100kg sack is a lot of wax but if that's what it takes, then there is no getting around it.

      For me, this is purely a hobby/interest where i enjoy the challenge of making something then trying to sell it for a small return. If I were to to add my time, energy costs for melting etc etc etc, then I simply wouldnt bother.

      Perhaps you could share your costing experiences and examples and links to your bulk buys


      Regards

      Comment


      • #4
        Originally posted by Netghost View Post
        I agree, it is an expensive way to do it, and as I've already mentioned, I will have to look to the 'economies of scale', to get the price down low enough to return a profit.
        A 100kg sack is a lot of wax but if that's what it takes, then there is no getting around it.

        For me, this is purely a hobby/interest where i enjoy the challenge of making something then trying to sell it for a small return. If I were to to add my time, energy costs for melting etc etc etc, then I simply wouldnt bother.

        Perhaps you could share your costing experiences and examples and links to your bulk buys


        Regards
        Minimum order on the route you are now is 20kg of wax. With VAT and shipping absorbed, you can be around £3.20 per kilo. I work at £4.00 per kilo so 40p per 100gms. I allow 60gms per votive so 24p on wax (at actual cost is under 20p). We started out the same exactly 12 months ago, 800gm bags then 5kg bags then it was 20kg of wax at a time. I still need to look into bigger, cheaper suppliers.

        Working out base costs for all materials is a lot better than trying to work out how many you can make from a delivery. cost up 300gm and 600gm batches, both will comfortably make 5/10 votives.

        We are still hobby/business. If we didn't enjoy doing it we wouldn't be doing it as it's only just about stopped costing us money to keep going.
        http://www.facebook.com/rugeleycandles

        Comment


        • #5
          It's rather like our free range eggs, costs us a fortune in the winter with no return. Opposite in the Spring/Summer, why do we do it? Cause it keeps us sane
          Last edited by Netghost; 30-12-2012, 04:56 PM.

          Comment


          • #6
            Okay, I tend to go all woozie when math is involved, so let me take another approach to this, and mention another member's excellent article about starting out...I'll have to look for it and will post the url, but it's by Handmadelives. You may already have it bookmarked.

            What you have spent already may not reflect what it will cost you in the future. So right now the cost may mathematically figure out to be too much per votive, to charge. BUT, this is your experimental stage. Your "investment stage" where you invest a good bit to learn and discover, etc..

            Off to look for that article...

            Okay, here's her blog - look on the left hand side for articles that may apply.

            http://handmadelives.wordpress.com/about/
            Last edited by removed10; 30-12-2012, 04:58 PM.

            Comment


            • #7
              Ok, the reason I costed it that way is to show the base cost of making a votive, or the most expensive way possible. By doing so, anything done to reduce costs, naturally reflects on the bottom line. It also creates an operating margin allowing for discounting.

              I'm sure if I invested in 100kg of wax, a couple of litres of FO, then I could knock them out for pennies

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              • #8
                I won't be listing all my suppliers etc and costings incase any of my customers read this forum lol

                i don't want them to know how much I make candles for...

                you can pm me though

                Comment


                • #9
                  Originally posted by Wicknwax Candles View Post
                  I won't be listing all my suppliers etc and costings incase any of my customers read this forum lol
                  This is smart - I have never understood why anyone would want a CF button on their website!!

                  Comment


                  • #10
                    Seriously though, the amount of people I've had copying my products, website (even down to the same font, colours, backdrops of photos, emailing asking where I get my scents from etc.... People only have to google my name and my postings will come up from here

                    So no I won't list all my hard work on an open forum

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                    • #11
                      Which is why I never mention a trading name on forums...

                      Comment


                      • #12
                        Yes should change my name really, don't get me wrong, I'm happy to help us crafters with cheaper scent, wax suppliers

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                        • #13
                          I don't mind sharing a bit of information but there's bit's I won't go into.
                          http://www.facebook.com/rugeleycandles

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                          • #14
                            I did complicated sums for you yesterday and then my internet connection went and I lost the lot. Just as well as it was becoming very depressing. You have missed out so many of your other costs. The Handmadelives thing will show you.
                            My conclusions were that your candles ought to cost £6. Quick candles is selling them for 22p each and John Lewis for £3 - hence the totally depressing bit.

                            And a big whisper - in the UK - you can't have a hobby business. That got clobbered years ago. You can hoard or give your stuff away and be a hobby but the minute you ask for money you are a business.

                            Comment


                            • #15
                              Anyone be kind enough to pm me with links to wholesale suppliers? I totally get it that I need to buy big

                              Comment

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