Candle Business 101: Pricing, Profit Margins, and Scaling Your Brand

If you’ve ever thought, “How do I price my candles?” or “Am I making enough profit?”, you’re not alone. Pricing is one of the trickiest parts of running a fragrance-based business, and getting it wrong can mean either scaring off customers or not making enough to sustain your brand.

But don’t worry, this guide will break down the essentials of pricing, profit margins, and scaling your business so you can build a thriving, sustainable brand.

Step 1: Understanding Your Costs
Before setting a price, you need to know exactly how much it costs to make each candle or product. This includes:

Raw Materials – Wax, fragrance oils, wicks, jars, lids, dyes, and any other ingredients.
Packaging – Boxes, labels, dust covers, stickers, etc.
Shipping & Handling – The cost of mailing out your orders, including packing materials.
Production Time & Labor – Even if you’re a one-person show, your time has value! 
Business Expenses – Website hosting, marketing, insurance, workspace rent, and other overhead costs. 

Pro Tip: Track your expenses down to the cent—guessing is a fast track to losing money. 

Step 2: Pricing Your Candles for Profit
A simple formula to start with:
Cost of Goods Sold (COGS) x 3 = Wholesale Price
Wholesale Price x 2 = Retail Price

 For example, if it costs you $6 to make one candle:

Wholesale price = $6 × 3 = $18
Retail price = $18 × 2 = $36

This pricing structure ensures that when you scale to wholesale, you’re still making a solid profit.

But wait! Can I charge more?
Yes! Factors like unique branding, premium packaging, limited edition collections, and high-end fragrance oils allow you to price higher. Luxury candles often sell for $40-$70 because of brand positioning.

Step 3: Profit Margins—What’s a Good One?
Profit margin is how much money you make after covering your costs.
Ideal wholesale profit margin: 30-50%
Ideal retail profit margin: 60-80%

 If you’re only making 20% profit on your retail price, it’s time to reassess your costs or pricing.

Step 4: Scaling Your Business
So, you’ve priced your candles correctly—now what? Scaling means increasing sales and revenue without working yourself to death.

Ways to Scale:
Wholesale & Stockists – Sell in bulk to retailers to increase revenue.
Subscription Boxes & Bundles – Encourage repeat purchases with monthly scent drops.
Limited Edition & Seasonal Scents – Keep customers excited with exclusive collections.
Influencer Marketing & PR – Get your products in front of new audiences with social media collaborations.
Hiring Help – If you’re drowning in orders, outsourcing production or admin work can free you up to grow your brand.

Final Thoughts
Building a profitable candle business is a mix of smart pricing, solid margins, and strategic scaling. Remember, pricing too low might get you more sales initially, but it can burn you out in the long run. Value your time, price confidently, and don’t be afraid to raise your prices as your brand grows.

What’s your biggest challenge when it comes to pricing? Drop a comment!