Getting your candles into boutiques, gift shops and cafés is a big step for a small candle business. It brings volume and visibility you can't easily get alone. But wholesale also means selling at a lower price, and if that price isn't set carefully, more orders can mean less profit. This guide explains how wholesale candle pricing works, how retailers think about it, and how to check that your wholesale price actually pays.
How should you price candles for wholesale?
Start from your true cost per candle — materials, packaging, your time and overhead. A widely used approach sets wholesale at about 2× your cost, so a candle costing $8.72 wholesales at $17.44. Retailers then typically double the wholesale price, known as keystone pricing, which would put it on their shelf at around $34.88.
The retailer needs that margin to cover rent, staff and their own profit. If your wholesale price doesn't allow for it, shops can't stock you.
How does keystone pricing work?
Keystone pricing means the retail price is set at double the wholesale price, which gives the retailer a 50% gross margin. It's common in gift and home retail, and many buyers will expect your suggested retail price to be roughly double your wholesale price.
| Price level | Formula | Example |
|---|---|---|
| Your true cost | Materials + packaging + time + overhead | $8.72 |
| Wholesale | About 2× cost | $17.44 |
| Suggested retail | About 2× wholesale | $34.88 |
How do you check that your wholesale price works?
Your profit at wholesale is wholesale price minus true cost — $8.72 per candle in this example, after paying yourself for your time. Check three things:
- Is there profit after your wage? If your wholesale price barely covers cost, a big order is just a lot of unpaid work.
- Is your retail price realistic for the shop's customers? If $34.88 is too high for a shop's market, you may need a lower-cost candle for wholesale (a smaller size or different vessel) rather than a thinner margin.
- Does your own retail price match? If you sell direct for much less than your suggested retail price, retailers may not want to compete with you.
What should you set as wholesale terms?
Terms protect your margin and your time. Common ones include:
- Minimum order quantity — a minimum number of units or dollar value per order, so small orders are worth packing.
- Case packs — selling in multiples (like 6 or 12 per scent) simplifies production.
- Payment terms — payment upfront for new accounts; some makers offer terms like net 30 to established shops.
- Lead time — how long orders take, allowing for curing.
- Shipping — who pays, and how breakage is handled.
A simple line sheet — your products, wholesale prices, suggested retail prices, case packs and terms on one page — makes it easy for shop buyers to order.
How can you make wholesale more profitable?
Wholesale orders are larger, so the time savings of bigger batches help. Pouring 48 candles instead of 24 in a session spreads your time across more candles and lowers the cost of each. Standardizing vessels and labels for wholesale lines can reduce costs too. How to price candles shows how vessel choice and batch size change your cost per candle.
Two related reads: the cost to make a candle, and how much fragrance oil to use per candle.
