So you might be burning the midnight oil trying to come up with your next entrepreneurial venture, or maybe you are just a crafter who has been making candles for friends and family with amazing results.
Either way, you might be wondering if you can make money selling candles. And when we say candles, we could apply a lot of this information and insight into lots of different trades. By way of demonstrating what can be achieved.
So in this article, we’ll discover whether you’re crafting an enterprise or simply if you’re looking to dropship candles, whether this can set you on course for your next money-making venture.
Let’s first take a look at the brief takeaway before we begin to look further into this burning question.
Can I make money selling candles? Selling candles can be a profitable way of either adding to your existing income or could become your sole business. Undertake thorough research into the types of stores available, understand how to attract customers, and make sure you have any necessary insurances in place.
Ok, so now that’s the quick answer delivered so you can quickly start to make an income selling wax creations, let’s start first of all by looking into a little background as to why it could be profitable to sell candles.
Are candles profitable?
Who doesn’t love candles? During the past decade, homemade candles have become an essential home decor item.
According to Allied Market Research, the candle industry is growing and expected to generate over $9,122.6 million by 2026.
In addition to candles growing as a primary category in the home decor industry, consumers have a growing interest in trends like aromatherapy and enhancing their houses with home scents.
According to the above report, it appears that one of the chief reasons why candles are a lucrative market is the huge range of complimentary products available.
The home fragrance market includes such products as customizable plug-ins, aromatherapy diffusers, and aromatic candles, which have helped to increase customer demand.
So it seems that store owners and consumers alike are attracted by the extended size of product offerings, and this one of the key drivers in building customer interest in the home fragrance market.
Using tools such as Google Search trends can help any would-be entrepreneurs decide whether setting up a store would be profitable.
So if you are wondering if making candles will make you money, according to Google, candles are on the rise in terms of trends.
This useful tool will also tell you which areas are searching too, which is useful if you are looking at setting up a physical store or if you prefer to sell locally.
Candles, whether handmade from soy or drop-shipped from China, have proved an affordable way for shoppers to indulge in a low-cost way and also become involved in the type of marketing story that candles project.
From a Nordic style forest to a spa in Thailand, a candle is a way for customers to buy a low-cost item and buy into a chosen lifestyle.
It’s also useful for anyone wondering whether selling candles makes money, to discover that the scented candles segment was responsible for the highest market share in home fragrance in 2018 and is to reach $545.2 Million by 2025, according to experts.
This is attributed to an upsurge in demand for scented candles among consumers for aromatherapy such as how home fragrance can improve moods, reduce stress, and promote relaxation, along with home décor.
More importantly, the availability of scented or aromatic candles in a huge array of designs, shapes & sizes, and colors, including jars, tapers, pillars, votive, liturgical candles, scented tea lights, and floating candles acts as one of the foremost drivers of the home fragrance segment.
Ok, so now we can see that a candle business might just be your next way to earn extra money or even create a sole income, you might be wondering where to start. Let’s find out.
What do I need to do to start a candle making business?
Like any kind of business, making money selling candles will depend on making sure you understand some basic set up rules.
In order to effectively sell your candles to an audience, one of the first things you will need is a storefront and a way of your customers finding you.
Where do I find a storefront for my candles?
In addition to having your own physical and eCommerce store, there are several types of online marketplaces and platforms where you can sell your products to people who otherwise might not find you.
So to help you decide on the kind of sales channels that might work best when you are making money selling candles, let’s take a look at some of the options below.
- Social media – Facebook or Instagram
- General marketplace – Amazon
- Auction marketplace – eBay
- Unique items marketplace – Bonanza
- Niche marketplace – Not On The High Street)
- Handmade and crafts marketplace- Etsy
- On-demand production marketplace – Cafepress
When you sell across multiple channels, for instance, online, offline, or even in a physical location, you’re offering multiple touchpoints for customers to interact with your brand or a ‘multi-channel’.
Ok so now we’ve seen how important it is to give some thought to the kind of store that will work for you and your customers, you might be wondering how to actually get customers into your store!
Let’s discover a little more below.
How do I get customers?
- Know your customer
- Discover where your customer is
- Understand your business
- Attract a following
- Direct response marketing
- Build partnerships
- Ask for referrals
- Offer discounts and incentives for new customers
- Re-contact any existing customers
- Improve your website
- Partner with complementary businesses
- Use online reviews to your advantage.
- Create an email marketing list
Setting a price
Finding your price point which ensures you make enough money from selling candles can often be a challenge for those new to running a store.
There are online calculators available that will help you to set a marginal markup percentage for your candles based on your costs.
Generally, a 25% to 50% margin is a good range for a new candle business.
However, don’t try to beat your competitors on price alone. Instead, concentrate on making a quality product, understand your expenses, and price line with your target market and audience.
Candle sales can be quite profitableSo is there anything you need to know if you want to make money selling candles? Let’s take a brief look at whether you might need any kind of insurance for your candle venture.
What insurance do I need to sell candles?
If you are either creating your own range of candles or if you are simply selling candles previously manufactured, it’s worth checking out any insurances which you will need to hold.
Having insurance can, for instance, help to protect you against the costs involved in rectifying faulty work, or you are working from home or in a studio.
If you are looking to sell candles for money at a craft fair or market to the public, for example, you will need public liability insurance. That basically covers you if someone trips on your stand and gets hurt.
To sell scented candles then you’ll need to get CLP labelling.
This is essentially the fire safety labelling along with the ingredients and warnings for the fragrances that you’ll be using. Most perfumers will be able to provide you with that information.
Burning candles are a fire safety hazard
So there you have it! The definitive answer as to whether selling candles can make you money! Hopefully, you can see now that, you don’t need a degree to understand what might be profitable, you can apply much of this criteria to a number of different craft type businesses.
Of course, it does depend on many factors and making sure you follow the rules of any business in order to be profitable.
Don’t forget if you are looking for any advertising assistance, are looking to start an email marketing list, or a step-by-step guide to opening your brand new store, get in touch.