How to Track Candle Inventory

Track three lists: raw materials (wax, oil, wicks, jars, labels), batches (what each pour used), and finished candles (what you can sell today). Each material gets one line with a unit and a unit cost. Each batch takes materials off the first list and adds candles to the third. Craftybase, which makes inventory software, lays out this approach, and the steps below follow its guides. You can run it on a free sheet or in an app.

What are the steps?

1. Make one line per material, in one unit. Craftybase suggests recording the weight per purchase, the cost per unit and the supplier lot or batch number for wax. Wax is usually in pounds (or kilograms). Track fragrance oil "by weight, not volume," because fragrance load is weight-based. Wicks, jars, labels and packaging are counted each, with supplier and unit cost.
2. Log every purchase. Date, quantity, price and supplier. Include shipping if you want a true cost (see our landed cost guide).
3. Subtract materials every time you pour. Log the batch, and take the wax, oil, jars and wicks it used off the count. Craftybase's spreadsheet has a "Manufactures" tab for this.
4. Keep finished candles on their own list. Add them when a batch is done, and subtract them when they sell or when you give one away.
5. Set a reorder point for each item. Use the formula in the next section.
6. Count on a rotation. Craftybase says a monthly count "doesn't need to be a full stocktake every month" and suggests rotating through categories over four weeks: high-turnover materials, finished goods, packaging and supplies, then slow-moving materials.
7. Investigate gaps. Craftybase says "when you find a discrepancy, investigate rather than just correcting the number." Did a batch go unlogged, or did a jar break?

How do I set a reorder point?

Craftybase gives this formula: Reorder Point = (Average daily usage x Supplier lead time in days) + Safety stock. Its example: 50 g of beeswax used per day, 7 days to deliver, and a 200 g buffer gives (50 x 7) + 200 = 550 g. When the count falls to 550 g, you order. Craftybase's candle guide also says to keep a reorder threshold for each type of container, so you are not "scrambling at the last minute."

Worked example

These numbers are examples. Say one batch is 24 candles with 8 oz (227 g) of wax each, at an 8 percent fragrance load.

• Wax per batch: 24 x 8 oz = 192 oz, which is 192 / 16 = 12 lb
• Fragrance oil: 192 oz x 0.08 = 15.36 oz
• Jars: 24. Wicks: 24.

Log that batch, and 12 lb of wax, 15.36 oz of oil, 24 jars and 24 wicks come off the count. If you pour 2 batches a week, that is 24 lb of wax and 48 jars a week.

Now the reorder point for jars. Use weeks instead of days, which gives the same answer:

• Usage: 48 jars a week
• Supplier lead time: 1 week, so 48 x 1 = 48 jars used while you wait
• Safety stock you choose: 24 jars (half a week)
• Reorder point: 48 + 24 = 72 jars

If jars come in cases of 12, that is 72 / 12 = 6 cases. When you have 6 cases left, order. For wax, with a 2 week lead time and a 12 lb buffer, the reorder point is 24 x 2 + 12 = 60 lb. The safety stock is a number you pick. Craftybase does not define it beyond its example, so choose a buffer you are comfortable with, and revisit it after a late delivery.

What about cost?

Craftybase says material costs fluctuate, so you need current unit costs. Batch cost is the sum of what the batch used, and if you use software, a changed material price reprices every affected recipe. In a sheet, you will update each recipe by hand. See our cost per candle guide.

Common mistakes

• Tracking fragrance oil by volume and the load by weight.
• Mixing units, such as pounds on one row and ounces on the next.
• Not subtracting a batch until you "get around to it."
• Forgetting test candles and giveaways, so finished stock drifts.
• Ordering by feel, then running out of jars on pour day.
• Over-ordering oils. Craftybase notes that fragrance oils can oxidise over time, and that over-ordering can mean throwing out expensive supplies.
• Fixing a count without asking why it was off.

Questions

How often should I count?

Craftybase suggests a rotation across four weeks, with a different category each week. If you are small, a quick weekly look at your top items works too. Pick a routine you will keep.

Do I need lot numbers?

Craftybase suggests recording the supplier's lot or batch number for wax. A lot number helps you trace a problem back to a supplier. I did not find a rule requiring it, so treat it as a good habit.

Should finished candles be in the same list as materials?

Keep them separate. Craftybase's spreadsheet does the same, with separate material inventory and product inventory tabs.