How to Price Candles in 2025? (In 9 Easy Steps)

Starting a candle business in 2025? One of the first challenges you’ll face is determining the appropriate price for your candles. Set the price too low, and you’re barely breaking even—or worse, losing money. Set it too high, and potential customers might scroll right past. But there is a smart way to price that covers your costs, builds in healthy profit, and keeps customers coming back.

how to price candles in 2025

A Pricing Guide of 9 Easy Steps

We’ve spent a lot of time figuring out what works when it comes to pricing your candles. Not guesses, not theories, but real methods that help you price with confidence. If you’ve ever felt unsure about what to charge, you’re not alone. This guide walks you through the same steps we use ourselves – simple, practical, and designed to help you get it right from the start.

Step 1: Know Your Cost

Before setting a price, you need to know the cost of making one candle. Use your recipe to calculate how much of each ingredient is used to make one candle, and total their cost. Add the price of your container and label. Include packaging things (boxes, filler, tape, tags) and everything that ships with your candle. Add the expenses of tools like melting pots and thermometers, as well as electricity.

Don’t forget to value your time. Whether you’re pouring, labeling, or packing, your time is part of the cost, so give it a fair hourly value. Once it’s all totaled, divide by the number of candles to find your price per candle. For example, if your materials cost $4.10 and you add $1.50 for time and overhead, your total is $5.60.

Step 2: Understand What People Are Willing to Pay

Now that you know your costs, it’s time to look outward. What are similar candles selling for? In 2025, the market ranges look like this:

  • Budget candles (store-brand/basic): $7–$15
  • Boutique or handmade mid-range candles: $16–$34
  • Luxury candles (designer or artisan brands): $35 and up

Size and scent complexity matter. A simple tea light won’t fetch the same price as a double-wicked, soy-blend candle with essential oils and a wood lid. The average customer expects to pay from $2.50 to $4.50 per ounce for mid-range candles.

Step 3: Pricing Formulas That Work

Let’s keep it simple. Most successful candle sellers use some variation of this formula:

Retail Price = Total Cost × 3 (or more)

Wholesale Price = Total Cost × 2

That means if your candle costs you $5.60, you might:

  • Sell it at wholesale for $11.20
  • Sell it at retail for $16.80 or higher

Want to be more exact? You can also try:

Retail Price = Cost ÷ (1 – Desired Profit Margin)

So for a 50% margin:

$5.60 ÷ (1 – 0.50) = $11.20

If those formulas feel too technical, you can also apply the 84 rule for candles. This simple method suggests pricing your candles based on the amount of wax used: multiply the number of wax ounces by $0.84. For instance, an 8-oz candle would start at $6.72 (8 × $0.84). 

It’s a handy shortcut for beginners to get a quick base price before adding in costs like containers, fragrance, labels, and profit. Play with the numbers, but ensure your final price covers everything and leaves you with some room to spare.

Step 4: Explore Your Market

Your sales channel affects how much you can (or should) charge.

Selling Online

Platforms like Etsy or your website usually allow for higher prices, but also come with fees (listing, transaction, payment). You’ll also need to account for shipping. Build all of that into your pricing.

Selling at Markets

Craft fairs and pop-ups offer face-to-face sales where customers often pay boutique prices. However, booth fees, travel, and setup time are extra costs you need to absorb. Consider offering bundles or multi-buy deals here.

Selling Wholesale

Retail shops or boutiques will expect a lower price so they can resell at a profit. Your wholesale price should still yield a profit after accounting for production costs.

Step 5: Make Your Price Work For You

It’s not enough to pick a number that covers costs—you need a price that pulls its weight. This step exists to help you turn pricing into a strategic tool, one that reflects your brand, attracts the right customers, and drives real profit.

In a 2023 case study, Sarah launched the Wick & Wild brand and sells handmade soy candles for $12 each. Her cost per candle? $5.80. After fees and packaging, profits were razor-thin. Worse, customers treated her candles as cheap, not special.

In 2024, she rebranded with minimalist packaging, better storytelling, and raised prices to $24. Instead of losing sales, her conversions improved. Her candles became gift-worthy, and her average order value soared past $70 bundles and seasonal drops.

By 2025, Sarah’s pricing will cover costs, doing the heavy lifting of positioning her brand and boosting her profits. Moving beyond basic cost-plus, your pricing becomes a statement about your brand’s worth and the unique experience you offer.

Step 6: Don’t Forget the Other Expenses

If you’re turning your candle-making into a business (not just a hobby), factor in a few extra costs:

  • Sales tax: Depending on your location, you may be required to collect it.
  • Licensing or registration: Small fees for getting a business license or registering your name.
  • Accounting tools or software: Spreadsheets are fine at first, but later you might use bookkeeping software that adds monthly costs.

You don’t have to complicate things, but don’t overlook them either. A smart seller plans for these early.

Step 7: Price Your Bundles, Gift Sets, and Seasonal Candles

Planning to sell candle sets or holiday collections? Great! Here’s how to price them:

  • Bundles: Price them slightly lower than if items were bought separately. For example, 3 candles at $18 each might be bundled for $50 instead of $54. This encourages higher spending while still yielding solid profits.
  • Gift sets: Add value through presentation, like a custom box, note, or scent theme. Price these higher than loose candles, because the packaging and giftability raise perceived value.
  • Seasonal/special editions: Limited scents or designs can be priced higher. If they feel exclusive, customers will pay more.

Think like a customer, what would you pay for a holiday trip or a candle with custom labeling?

Step 8: Psychological Pricing Tricks 

Numbers aren’t just numbers—they shape perception. Here’s how to price your candles psychologically:

  • End in .99 or .95 – $19.95 feels way cheaper than $20.00, even though the difference is small.
  • Use anchor pricing – Place a premium candle next to a standard one. The standard will feel like a bargain.
  • Highlight savings – Instead of “$25,” write “Originally $30, now $25”—even if $30 wasn’t the original price, this sets a higher value in the shopper’s mind.

These tactics don’t change your product, but they influence how people feel about it.

Step 9: Use Tools to Track and Adjust Your Prices

As your business grows, keep an eye on your numbers. Here’s what can help:

  • Spreadsheets: Track all your costs, markups, and profits in Google Sheets or Excel.
  • Free calculators: Some candle-making sites and business blogs offer free pricing calculators.
  • Analytics: If you’re selling on Etsy or your site, check which candles sell best and which need a price tweak.

Your first price isn’t set in stone. It’s a starting point. Use data to adjust and grow smarter with every sale.

Takeaway

  • Never underprice: If you’re making $1 profit per candle, you’re not building a business—you’re burning out.
  • Charge for your story: Handmade, vegan, eco-conscious, unique scents—these all add value that customers will pay for.
  • Keep room for discounts: A 10% sale should never eat into your margin so much that you’re in the red.
  • Revisit your prices regularly: As your costs rise or your brand becomes better known, adjust your prices accordingly.

Final Thoughts

The price of your candles isn’t a one-time decision—it’s a business strategy. Take the time to calculate, compare, and craft a price that reflects the true value of your work. Whether you’re selling soy candles at the farmers market or launching an online store, a smart pricing strategy is the foundation of a successful candle business. The price you set today is just the beginning. As your brand grows, your value grows with it.

FAQs

How are candle prices calculated?

Candle prices are determined by adding the cost of raw materials, labor, overhead, and shipping. Once you have your total cost, multiply it by 2.5 to 3 times to set a reasonable selling price.

What is a good profit margin for candles?

For handmade candles, a profit margin between 30% and 50% is considered ideal. It ensures you cover your costs while still earning a profit.

Can I raise my prices over time?

Yes. As your brand value increases and your products become more popular, you can gradually raise your prices to reflect the growing demand and the value you offer.

Should I offer bundle pricing or discounts?

Bundles can increase your average order value, but always calculate your margins before offering any discount.

How much should I sell an 8-oz candle?

A well-made 8-oz candle sells for $16 to $24, depending on your costs, brand positioning, and packaging. If your total costs are around $5–$7, aim to price it at 3× for retail profit and room for promotions.

 

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