How We Calculate Candle Cost of Goods with Inventora

Today, we're diving into an essential aspect of running a successful candle-making business: calculating the cost of goods (COGS). We'll walk you through how we use Inventora, an all-in-one inventory management system, to track our materials and accurately calculate our COGS.

Why Understanding COGS Matters

Knowing the cost of goods is crucial for any business, especially for those creating handmade products like candles. It helps you:

• Set the right pricing for your products.
• Understand your profit margins.
• Make informed decisions about purchasing and production.
• Ensure the sustainability and profitability of your business.

Introducing Inventora

Inventora is a robust tool designed specifically for makers and manufacturers. It allows you to keep track of raw materials, finished products, and business reports in one convenient place. Here’s how we leverage Inventora to streamline our operations and keep our costs in check.

Setting Up Inventora for Your Candle Business

1. Sign Up and Get Started: Visit Inventora and sign up for an account. The setup process is intuitive, and you’ll be up and running in no time.

2. Input Your Raw Materials: Start by entering all the raw materials you use in your candle-making process. This includes wax, wicks, fragrance oils, containers, labels, and any other supplies.

3. Track Inventory Levels: Inventora helps you maintain an accurate inventory by tracking the quantities of each material. You’ll receive alerts when stock levels are low, ensuring you never run out of essential supplies.

Calculating the Cost of Goods

With all your materials entered into Inventora, you can now calculate your COGS:

1. Create Product Recipes: For each candle you make, create a recipe in Inventora that lists all the materials and their quantities. This will help you determine the total cost of materials for each product.

2. Automatic COGS Calculation: Inventora automatically calculates the COGS based on your input. This feature saves time and ensures accuracy, allowing you to focus on other aspects of your business.

3. Set Pricing: Once you know your COGS, you can set appropriate retail and wholesale prices. Inventora provides insights into your profit margins, helping you make data-driven pricing decisions.

Integrating with E-commerce Platforms

Inventora integrates seamlessly with popular e-commerce platforms like Shopify, Etsy, Wix, and Square. This integration ensures that your inventory is always up-to-date across all sales channels, preventing overselling and stockouts.

Benefits of Using Inventora

• Efficiency: Automates tedious tasks and streamlines inventory management.
• Accuracy: Reduces errors in tracking materials and calculating costs.
• Scalability: Supports your business as it grows, making it easy to manage increasing inventory and sales.
• Insights: Provides valuable reports that help you understand your business better and make informed decisions.

Conclusion

Accurately calculating the cost of goods is vital for the success of your candle business. With Inventora, you can manage your inventory efficiently, set the right prices, and ensure your business remains profitable. Start using Inventora today and take control of your candle-making business!

Try Inventora: Inventora Official Site

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We hope you found this guide helpful. Stay tuned for more tips and insights on running a successful candle-making business!