![How to plan and track the budget of your scented candles brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_a9dc42b9-b57c-4cf1-9594-5659857435c2.png?v=1715856409&width=1100)
If you don’t plan and track your scented candle business budget properly, you're setting yourself up for failure.
When we developed our strategy pack for candle makers, we saw a lot of entrepreneurs struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your candle business's finances around and set you on the path to success!
Get the budget tracker tailored for candles brands
Most candle brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for candles brands
Here is an example of a (very) detailed budget for a scented candles brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for production and office space | $2,500 | $30,000 |
| Electricity | Power consumption for production and office | $400 | $4,800 |
| Water | Water usage for production | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Production Manager | 1 | $3,500 | $3,500 | $42,000 |
| Candle Makers | 3 | $2,500 | $7,500 | $90,000 |
| Packaging Staff | 2 | $2,000 | $4,000 | $48,000 |
| Sales & Marketing | 1 | $3,000 | $3,000 | $36,000 |
| Customer Service | 1 | $2,500 | $2,500 | $30,000 |
| Manager | 1 | $4,000 | $4,000 | $48,000 |
3. Raw Materials & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Wax | Paraffin, soy, beeswax, etc. | $2,000 | $24,000 |
| Fragrance Oils | Essential oils and fragrance blends | $1,500 | $18,000 |
| Wicks | Cotton, wood, and other types of wicks | $500 | $6,000 |
| Containers | Jars, tins, and other candle containers | $1,000 | $12,000 |
| Labels & Packaging | Custom labels, boxes, and packaging materials | $800 | $9,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, magazine ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses, health permits, etc. | $50 | $600 |
| POS System | Point of Sale software and hardware | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
| Staff Training | Training programs and materials | $100 | $1,200 |
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What are the biggest expenses for a scented candles brand?
Be mindful of these potential pitfalls. Here are five major costs every scented candle brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can take up a significant portion of your budget. You're dealing with essential oils, wax, wicks, and containers, and prices can vary based on quality, availability, and seasonality. To keep these costs under control, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by opting for premium materials that don't necessarily add enough value to your product.
- Labor costsYour team is crucial, but paying for their wages, benefits, and training can be costly. This expense is always high because you need skilled employees to ensure quality production and customer service. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and decreased product quality.
- Rent and utilities for your workspacePrime locations come with high rent, but they can attract more foot traffic and enhance your brand image. Utilities like electricity, heating, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient equipment and lighting. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to spread the word about your scented candles, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we recommend in our guide. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Production equipment and maintenance costsThis includes everything from candle-making machines to packaging tools. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and product consistency. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your scented candles brand?
Here are practical tips to help you, as a scented candle brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Source wax, wicks, and essential oils from local suppliers to reduce shipping costs and support local businesses. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient lighting and equipment in your production area. |
| Marketing | Run social media contests for your candles and collaborate with local influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who return jars for refills. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Shipping | Partner with reliable shipping companies and negotiate bulk shipping rates. |
| Product Development | Conduct market research to focus on popular scents and avoid overproduction of less popular items. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize material waste and recycle excess wax. |
| Technology | Invest in multi-functional production equipment and utilize inventory management software. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Quality Control | Implement a quality control process to ensure consistency and reduce returns. |
| Website Maintenance | Regularly update your website and use SEO strategies to increase online visibility. |
| Customer Service | Train staff to handle customer inquiries efficiently and use a CRM system to manage customer relationships. |
| Trade Shows | Participate in local trade shows to increase brand visibility and network with potential partners. |
| Subscription Services | Offer subscription services to create a steady revenue stream and build customer loyalty. |
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Expenses that are just useless for a scented candles brand
Yes, some expenses for your scented candle business are just unnecessary. They don't contribute to increasing revenue or enhancing customer satisfaction.
| Candle Business Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| Premium Wax Types | Unless you are targeting a niche market, most customers are satisfied with high-quality, mid-range wax options. |
| Excessive Scent Varieties | A large variety of scents increases inventory costs and can lead to more unsold stock. |
| High-End Production Equipment | Top-of-the-line production equipment is not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your candle business. |
| Multiple Label Designs | Having various label designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving product quality. |
| Premium Subscription Services | Expensive subscriptions for industry magazines or exclusive forums often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Display Units | High-end display units are not always appreciated by customers and can be a significant expense. |
| Custom Printed Boxes | Personalized boxes are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Fragrance Oils | Most customers are content with high-quality, mid-range fragrance oils, making expensive options unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Product Redesigns | Constantly updating product designs can be costly and disrupt production. |
| Expensive Store Displays | Elaborate store displays are often ignored by customers and add to the cost. |
| High-End Candle Holders | Luxury candle holders are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Candle Molds | Specialized candle molds are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your scented candles brand!
Managing a budget for a scented candles business when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more resources to invest back into your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of scented candles businesses just like yours. Get them now!
Make your scented candles brand more profitable
We have studied the strategies of the best candles brands in the world. All their tactics are explained in our pack!
