Selling homemade candles could be a good business idea if you’re an entrepreneur prepared to spend long hours on a new project.
Even the most reluctant DIYer can learn to create candles if they want to produce something useful and hot (literally and figuratively).
Therefore, let’s look at how you may monetize with this popular product if you’re interested in learning how to manufacture homemade candles and launch a candle business.
How come homemade candles are created and sold?
According to MarketWatch, homemade candles have developed into a necessary component of home décor, with the market predicted to reach billion dollars by 2026. The commercial utilization of candles has significantly increased in recent years, with restaurants providing fragrant settings for patrons and spas utilizing scented candles for relaxing effects.
According to National Candle Association, consumers also purchase candles as a focal point for their home’s design and aromatherapy purposes, including relaxation and stress relief. A candle’s profit margin typically ranges from 25% to 50%. Remember that this can change depending on several variables, including the typical cost of raw materials, shipping, labor, and your specific niche or target market.
Google Trends shows much interest in particular candle varieties, including scented, soy, and many others. Candles are in high demand and hold a wide range of consumer interests.
So this understanding is vital to help you construct a collection that connects with potential clients when eager entrepreneurs decide what kind of things to create.
In addition to their widespread appeal, candles also provide business owners with several additional advantages, such as:
Low entry fee
Even though some types of homemade candles require more expensive components than others, candlemakers may generally produce their goods with very little money upfront.
Simple to sell everywhere
Do you want to market your home décor products at local markets and craft shows? Because homemade candles are portable, you may sell them offline and online.
The craft that is easy to learn. The fundamental instructions for making basic candles are simple to follow, regardless of your level of DIY experience. The math is straightforward, as shown in our helpful infographic below.
Simple to customize
Candles come in a wide variety, making it simple to customize your offerings and set yourself apart from direct rivals.
Making candles is a hobby that can be developed into a sustainable source of income from the perspective of a do-it-yourself enterprise. But let’s look at a few things before discussing making homemade candles.
Handmade candle varieties
Making candles for your company has several benefits, not the least of which is the variety—any potential consumer will find a candle they like.
Still, trying to figure out where to begin? The best homemade candles to consider while developing your candle company chances are listed below.
Soy candles
Soy candles are created from a soy wax base and are one of the most popular candle types available today. Since this wax is manufactured from soybeans, it is a vegetable product (opposed to regular oil- or paraffin-based candles). According to Grandview Research, the soy wax market is anticipated to expand at a compound annual growth rate of 8.5% from 2019 to 2025.
Soy candles come from natural sources and burn more efficiently and for a longer period. In this manner, customers can purchase a longer-lasting candle for a lower price.
Soy candles not only come from natural sources but also burn more efficiently and for longer. In this manner, customers can purchase a longer-lasting candle for a lower price.
Candles with scents or aromatherapy
One of the popular types of candles is this one. Customers wishing to fill their homes with enticing odors can choose from various perfumes in scented or aromatherapy candles.
These candles exist in dozens of scents, so a fragrance will attract practically everyone, whether intended to cover a typical household odor or create a unique scent scape.
The manufacturers of aromatherapy candles promote their goods as having certain advantages related to particular smells. These candles typically call for volatile oil to improve one’s physical or emotional well-being. For instance, the aroma of lavender is frequently thought to promote relaxation.
Veggie candles
A growing number of consumers are interested in knowing what ingredients, if any, come from animals when purchasing goods. Basic candles frequently include animal byproducts such as beeswax, which some customers find objectionable.
However, vegan candles are here to the rescue! Vegan candles’ modified compositions include soy wax, flower waxes, aroma oils, and natural scents.
Thematic candles
You’ve probably seen candles in a home goods store that come in various hues, forms, and sizes. Some candles are created solely for ornamental purposes; they may not be fragrant or contain unique components. They merely give a room in your house a special something.
Decorative candles frequently have complex shapes, come with accessories, and have intricate decorations.
How to launch a candle company
Conduct market analysis
Your target market is the people you wish to reach via your marketing initiatives. These consumers will most likely be interested in your goods and become clients. The three types of target markets in the light industry are as follows:
Prestige
The luxury candle market is a recent and rapidly expanding business category. Prices could change. Prestige candles typically cost between $30 and $80, but some, such as the Vuitton scented candle, may cost as much as $185. The high quality of its packaging, perfumes and attention to brand storytelling are hallmarks of prestige candles.
Mid-market
These mid-range candles are very popular. They’re probably available at stores like Target. Mid-market candles often cost around $10 per candle and feature distinctive landscapes like rose water, citrus, or basil.
Big box stores
The least expensive candles on the market are these. The majority of this market is dominated by companies like Yankee Candles and Bath Bath and Beyond. Classic aromas like vanilla or sea breeze are available and range in price from $5 to $8 per candle.
Choose the market you want to target. Do you wish to enter retail establishments? Then going mid-market might be your best bet. Do you want to restrict your sales to your website or online shops? You can make prestige candles.
From acquiring materials to creating your brand and packaging, choosing your market will help. After choosing a sector, select the kinds of candles you’ll make.
Take note of the kind of candles people are purchasing while conducting your research. Do vegan, environmentally friendly candles work best for your market? Or do prospective customers approve of paraffin wax candles notwithstanding their negative environmental effects?
The kind of brand you develop will depend on the candles you decide to offer.
Create a brand
Building a brand is the second step in launching a candle-making company. Your brand will influence your marketing strategies, making it simpler to produce better products for your customers.
Particularly for candle businesses, having a strong brand is essential. Over the past ten years, the company has experienced such rapid growth that breaking into it can sometimes seem unattainable.
Let’s examine three strategies for standing out in the crowded candle industry.
Special and intriguing fragrance combinations
The most crucial deciding element for customers today is fragrance. According to research by the National Candle Association, three-fourths of candle consumers feel it is “very significant” or “very important” in their choice of a candle.
Using unique scents is one method to differentiate yourself from the competition. Making a novel blend gives you instant market recognition.
Choose more nuanced and sophisticated perfumes that customers can’t obtain anywhere else, such as those that evoke memories or feelings of mystery and intrigue, rather than the more common flowery and woodsy aromas.
Brand story
The quickest method to engage customers is with a brand story. It’s a story that people can use to understand and relate to your brand. Your mission, message, and voice are built upon this basis.
Brand tales, particularly those in the candle industry, are engaging, relatable, and genuine. People should be moved to action by it, whether that action is signup, purchase, donation, or something else entirely.
Consider the Keep Candles story. Harry Doull and Stephen Tracy, the founders, were dissatisfied with their positions in technology.
They switched to candle manufacturing because they wished to use their work for something more motivating and meaningful.
- Asking yourself these questions will help you discover your story.
- I’m manufacturing candles; why?
- For whom am I creating candles?
- How do I desire to be perceived by them?
- Which contribution do I want to make to the world?
Visually distinct
The most effective way to affect how people perceive your candle business is through your visual identity, including your logo, photography, website, social media, and packaging.
You need to pay great attention to the aesthetics of your items when it comes to your candle brand. Customers will use your candles as a decorative addition to their homes and for their personal odor preferences, so you should create your items with them in mind.
For instance, the Boy Smells brand focuses on enhancing your personal space. They appeal to all genders and are vibrant and sensual.
The company’s visual design celebrates both genders in a straightforward, uncomplicated manner, empowering people from all walks of life, no matter where they draw strength.
Choose a name for your candle company
Your candle business is currently taking shape well. It’s time to choose one of the potential business names you’ve thought about throughout the years.
Keep your suggestions for candle company names succinct and straightforward. That will make it unique and simple for customers to say. You will lose out on a free-term promotion if your name is too challenging to recall.
Utilize Shopify’s business name generator {For example} if you still need help coming up with a name for your company. Type a keyword, click Create Names, and browse hundreds of automatically generated name suggestions for your business.
Writing a business plan
When starting a candle business, your entire operation is governed by a business plan. It assists in defining your strategy, identifying obstacles, determining the resources you require, and evaluating your business idea before launching.
What is the ultimate objective for my brand? Whom do I directly compete against? Will I allow myself to be sold at stores like Target or Nordstrom? Or do I want to open an online store and sell to my consumers directly?
As you develop your candle-making brand, identify your business objectives and keep them in mind.
Make a marketing strategy
You’ve got the winning formula; now work on marketing your soy candles (or other homemade ones).
Online
Like many business-to-consumer businesses, one of the most lucrative channels for selling candles is the internet. To connect with potential clients worldwide, you can use various digital platforms, such as social media and your own e-commerce website.
There are a few locations business owners can try to help startups get started, even if only some digital platforms will be successful sales platforms for some merchants.
These are some excellent methods to help market your business online, even though the following list only includes some channels merchants can investigate for their fledgling enterprise.
Many lifestyle companies have had significant success growing their Instagram followings. Create a gorgeous image feed for your brand, stage candle shots for buyers to see, and expand your following. Additionally, you can utilize Instagram to connect with brand advocates and share a behind-the-scenes look at your candle-making process.
One of the most popular venues for consumers to discover brands and goods is Pinterest, which has a significant user base in the home decor area. Therefore, it makes sense for businesses selling handcrafted candles to include Pinterest as a key component of their marketing plan.
Snapchat
Snapchat is an additional highly visual medium that maker businesses can use. As one of the social media sites with the greatest rate of growth,
DIY hustlers can use the media to promote to an expanding audience thanks to its more than 200 million users.
Contests and giveaways
You can utilize some of your products as prizes in a series of freebies and competitions as part of a social/content marketing plan. By participating in these competitions, you can demonstrate how well your items function and increase your fan base and brand recognition.
Deliver your message to your customers’ inboxes together with special offers, discounts, and other brand news through email marketing.
Offline
Be bold and try selling in person, even though online is profitable for retailers.
Homemade candles are portable and small, which makes them perfect for on-the-go sales. Your fragrant interior design Homemade candles are portable and small, which makes them ideal for on-the-go sales. Your aromatic home decor products are perfect for showcasing at craft fairs and pop-up shops, giving business owners a chance to hear from prospective clients directly in person.
Still, trying to convince about in-person sales? Going IRL for sales has a variety of other advantages, such as:
Receiving honest criticism
Selling in person is a terrific approach if you’re keen to enhance your items (or just dying to hear what customers think). Meet your target clients in person, listen to their problems, and get suggestions for upcoming goods.
Discover opportunities in wholesale
Are you ready to grow your company? Are you interested in investigating B2B sales? Events like markets and fairs are perfect. It should develop a foundation for such a relationship by getting to know wholesale buyers.
Increase your email subscribers and online presence
Use pop-up stores and markets to interact online, whether your goal is to expand your social media following or email list. Ask customers who stop by your booth or store to join your email list or follow your branded social media channels to learn about new items, deals, and freebies.
Collaborating and getting ideas
One of the main draws for festivals, markets, and fairs is the opportunity to network with other creators and business owners. Meeting other business owners can provide you with fresh perspectives and assist you in developing original solutions to common issues.
And using the appropriate tools will help you earn sales while you’re on the go. When setting up your store or booth at the next flea market, farmer’s market, craft fair, or maker fair, use a portable point-of-sale solution like Shopify POS to ensure that transactions are quick and easy.
Conclusion
You’ve made it this far, so you clearly understand how to launch your own home-based candle business. Using the resources and information mentioned above, you can start your own side business making and selling homemade candles.
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