Starting a Business in Candle Making

The candle making business has existed for hundreds of years. Until today, the demand for candles is still very much valuable in several places around the globe, especially during the month of November where All Souls Day and All Saints Day are celebrated.

Candle making is an ancient technique with significant uses, which still makes it a promising business venture. A candle making business is relatively simple and you can study two factors to start your own.

1. Technique. Study how candles are made. You may choose to invest in making one kind of candle as long as you can plan how to make the product. Some candles are handmade, while others are mass-produced by machines. Find the candle making technique you prefer.

2. Material. You need to have a reliable and reputable supplier to provide you with the materials to make candles. It is advisable that you inform your supplier about your planned candle making business so that you won’t have problems with amount and cost later on. Study how to preserve the wax and save heat energy during liquefying processes.

Skills Needed

You have to take a candle making course to know how to properly make the candles you intend to sell. It is important that once you label a candle type, all models of that type appear and perform similarly.

Identify the kinds of wax you can use like paraffin, beeswax, gel, etc. and model accordingly using home-made devices or machines. Learn how to add color, texture, design and scent for variety as well as wick longevity for performance.

Experience Needed

You need to be excellent in making candles and have some experience making the type you intend to sell. It’s better if you know how to produce in huge quantities too to satisfy your expected demand. The quality of your candles matter most in the candle making business; this is why your products need to be consistent in appearance, performance and cost.

You can work at home in the beginning and market your product manually or over the internet. After some time, you can hire more personnel to increase productivity as your candle making business grows.

Investment Costs: (in Php based on 2009 prices)

  • Paraffin wax granules @75/kg x 10 kg – 620.00
  • Polyethylene wax* @180/kg x 10 kg – 1,800.00
  • Crystal wax @192/kg x 8 kg – 1,536.00
  • Gel wax @270/kg x 5 – 1,350.00
  • Dyes @50/pack  x 5 – 300.00
  • Separator (petroleum jelly, cooking oil, liquid soap, etc.) – 120.00
  • Nylon wick @30.00/pack  x 2  – 72.00
  • Bamboo sticks, 1 bundle – 30.00
  • Scent @85 to 300/bottle  x 3  – 255.00
  • Subtotal – P6,2130.00

Tools and Equipment:

  • Heat source (300/unit) x 2 – 600.00
  • Heating pans (350/unit) x 2 – 700.00
  • Molders (305/molder) x 5 – 1,750.00
  • Subtotal – P3,050.00

Total Cost – P9,263.00

General Procedure

  1. Prepare the waxes. For every kg of paraffin wax, add 100 grams of polyethylene wax and 30 to 50 grams of crystal wax. If the paraffin wax is in a slab form, break it first into small pieces.
  2. Heat the wax in a container other than the dipping tube. The safest way is to use a double boiler. If without a double boiler, heat the wax slowly in pouring pot or saucepan.
  3. Wax is completely melted if the liquid is clear and the bottom of the container is seen. DO NOT BURN WAX (indicated by smoky fumes and brown coloration).
  4. Remove from heat source and transfer contents into another container either in dipping tube or metal cup with spout. Add dye and scent (optional). The wax is now ready for dipping and/or molding.

A. Dipped Candles (oldest and simplest means of making candles):

  1. Cut wicks into several inches longer than the desired candle length.
  2. If you wish to dip several candles at the same time, tie the wicks 2 to 3 inches apart on a rod or a hoop.
  3. Dip the wick into the melted wax. Withdraw the wick and pull on the other end to make it taut. Dip the wick again after the first layer of wax hardens.
  4. Continue dipping the candles until it reaches the desired thickness. Allow each layer of wax to cool and harden after every dipping.
  5. To make the bottoms of the dipped candles flat and smooth, heat a metal spatula over a gas flame or electric burner. Rub the candle bottoms against hot metal surface, melting away until the bottoms are flat.

A1. Estimated Costing and Pricing

  • Direct cost of materials (based on 5000 pcs) – 0.94
  • Indirect cost – 0.27
    • Labor – 0.15
    • Transportation – 0.02
    • Water and electricity – 0.01
    • Contingency (10% of direct cost) – 0.09
  • Estimated production cost – 1.21
  • Add: 10-20% markup – 0.24
  • Estimated selling price per piece – 1.45
  • Market price – P2.50 to P3.00

A2. Estimated Income per Day

  • Dipped candles 5,000 x 1.45 – P7,250.00
  • Less: All expenses – 5,599.00
    • Raw materials (0.94 x 5000) – 4,700.00
    • Overhead – 135.00
    • Labor – 764.00
  • Estimated income per day – P1,651.00

B. Molded Candles (molders can be purchased, made or found)

  1. Prepare mold to release candle by applying the inside of the molder with a thin layer of separator.
  2. Prepare the wick. The size of the wick depends on the size of the candle. The wick is usually place in the mold before the wax is poured. However, certain candles require that the wick be inserted after the candle is made. This is done by piercing a wick hole in the candle with a hot ice pick.
  3. Hold mold in a slanting position. Pour hot wax from pot to the metal cup with spout, then, from cup slowly into the mold.
  4. Cool mold by placing it in a pail with cold water. Hold down with a heavy object.
  5. After cooling, notice that portion about the wick recedes. Puncture and pour wax into the cavity until filled.
  6. Cool the mold again. After the wax has set, remove mold from water. Pull wick gently to release the candle. Trim excess wick.

B1. Estimated Costing and Pricing

  • Direct cost of materials (waxes, wick, scent, dyes)  – 15.59
  • Indirect cost (labor, transportation, water, electricity, contingency) – 18.59
  • Estimated production cost – 34.18
  • Add: 10-40% markup – 13.67
  • Estimated selling price per piece – 47.85
  • Market price – P50.00 to P100.00

B2. Estimated Income per Day

  • Molded candles 300 x 47.85 – P14,355.00
  • Less: All expenses (raw materials, overhead, labor) – 5,576.00
  • Estimated income per day – P8,779.00

Safety Precautions

  1. Always have a fire extinguisher within reach.
  2. Never use water to extinguish a wax fire. Liquid wax behaves much the same way as oil, and therefore needs to be treated like an oil fire.
  3. NEVER LEAVE MELTING WAX UNATTENDED.
  4. Constantly monitor the temperature of the wax. If wax reaches the flash point, then the vapor’s produced are extremely flammable. The flash point of wax is typically above 300°F.
  5. Always use a double boiler. A double boiler helps distribute heat and prevents dangerous temperatures. Never melt wax directly on your stove.
  6. Use a electric heat source if possible. If, by accident, the wax reaches the flash point, vapors may find a flame and become ignited on an electric heat source. Any open flame such as that found on a gas stove, will ignite wax vapors.
  7. Always use a thermometer to monitor the wax temperature. Put it on your list of things to get before you start making candles.

Registration Requirements

  • Business name registration (www.bnrs.dti.gov.ph)
  • Mayor’s/Business Permit (check your local municipality/city)
  • BIR TIN (www.bir.gov.ph)

Financing Facility

  • SSS Special Financing Program (www.sss.gov.ph)
  • Small & Medium Enterprise Credit (www.pbsp.org.ph)
  • People’s Credit and Finance Corp. (www.pcfc.gov.ph)

Technical Assistance

  • DTI-Cottage Industry Technology Center ([02] 942-0880/3974)
  • TESDA-WC (www.twc.tesda.gov.ph)

source: www.dti.gov.ph

Comments

  1. By Aimee Wilson

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