How To Price Your Candles for a Profitable Candle Business | Operations Strategies

Hi, we’re Katie and Eric Roering; the founders of Fontana Candle Co. In 4 years we took our hobby of making candles in our basement, and selling them at craft shows and makers markets and we turned Fontana into a nationally recognized eCommerce brand. This year we are doing 7 figures of revenue and have 12 employees. So how did we do it? Welcome to The Candle Couple Podcast, where we will share the nitty gritty of scaling our e-commerce brand quickly. We are spilling the tea, so hopefully we can help you scale your brand quickly too. Today we will discuss one of the most asked questions of those just starting in their candle business journey: how to price their candles. This is one of the most important foundations for a profitable business. Eric, a former CPA and our current Chief Financial Officer, will walk you through the pricing strategies he uses in our 7 figure candle brand. Welcome to Episode 14: How to Price Your Candles for a Profitable Candle Business Timestamps: 1:46 understanding weights 2:41 building a BOM (Bill of Materials) 5:30 How often do we look at our pricing? 6:06 Software needed for pricing 7:15 Adding up COGs 8:13 Direct Labor Costs 9:29 Indirect Labor Costs 10:45 Overhead Costs 11:15 Forecasting what you will sell 13:23 How are you paying yourself? 14:40 Reinvesting back into your business 15:20 Shrink costs 16:40 Selling wholesale 18:46 This is a volume business 19:00 Does your pricing make sense for your brand and niche? 19:40 The Psychology of pricing 20:17 Subsidizing shipping costs 21:40 Decreasing COGS: vessels and labels Resources: Previous Episode: The Software We Use:    • The Software We Use in Our 7 Figure Candle...   MRP Easy: https://app.mrpeasy.com/ctrl/partner/... Disclaimer: Everything shared in our videos is from our own personal experience, and is intended for educational and informational purposes only. Always seek legal guidance from a business attorney and certified public accountant. Everyone is responsible for their own business structure and business practices, and we will not be held accountable. Since we love the companies we talk about so much, we may have an affiliate relationship with them. If you make a purchase through the above links, we may earn a small affiliate commission. There is no additional cost to you.