Tips and Ideas

The Maker’s Guide to Product Costing: Are You Actually Making a Profit?

Posted on by Candle Deli
download Candle Deli's FREE know your numbers checklist
05
Feb

You’ve perfected your scent throw. Your labels look professional. Your orders are starting to roll in. But at the end of the month, is there actually money left in the bank?

For many South African makers, “pricing” is often just a guess based on what competitors are doing. But if you aren’t product costing correctly, you’re not running a business—you’re sponsoring a very expensive hobby.

In this guide, we break down the exact checklist you need to ensure your margins are protected and your business is sustainable.

1. Start with your materials costs

When you buy a 25kg box of wax, the cost isn’t just the price on the invoice.

  • The numbers: If you paid R1000 for candle materials and R150 for the courier, your starting cost is R1150.

  • A tip: Divide that total by the number of candles you can make from these supplies.

2. Add the “invisible” overheads

This is where most makers lose money. If you want to scale, you must account for:

  • Utilities: Running a wax melter for 4 hours adds up.

  • Consumables: Paper towels, packaging etc.

  • Transaction Fees: Don’t forget that payment gateways like PayFast or SnapScan take a percentage of every sale.

3. Pay the most important employee – you!

If it takes you 30 minutes to prep, pour, and label a batch of 10 candles, you must include a labour cost.

  • Why? Because one day, you might want to hire someone to do it for you. If your price doesn’t include labour, you won’t be able to afford the help.

4. The wholesale vs. retail gap

A common mistake is pricing for retail (direct-to-customer) but forgetting that shops will want to buy from you at wholesale prices (roughly 50% of retail).

Download the FREE “Maker’s Ultimate Product Costing Checklist” checklist

Conclusion: Numbers Empower Creativity

Knowing your numbers doesn’t limit you – it frees you to grow. When you know exactly what a product costs, you can run sales with confidence, offer wholesale discounts without fear, and finally see the profit your hard work deserves.

Ready to restock? Visit Candle Deli for high-quality wax, fragrances, and containers