Margin and markup use different denominators
Before selling fees, a candle costing 6 and selling for 12 has a 6 increase over cost. Markup is 6 ÷ 6 = 100%. Margin on that simplified basis is 6 ÷ 12 = 50%. Calling both “profit percentage” hides an important difference.
Add the fees before comparing prices
With cost 6, price 15, a 3% fee and allocated fixed fee 0.30, the variable fee is 0.45. Contribution is 15 − 0.45 − 0.30 − 6 = 8.25. Contribution margin is 8.25 ÷ 15 = 55%.
At price 12 with the same assumptions, contribution becomes 12 − 0.36 − 0.30 − 6 = 5.34, or 44.5%. This includes only entered costs and is not audited net profit.
Solve for a target contribution margin
For cost 6, fixed fee 0.30, variable fee 3% and target 55%, the denominator is 0.42 and the target price is 15. Fee plus margin must stay below 100%. Round the calculated target price upward to the next cent so rounding does not lower the target.
Compare your candle costs →Keep the cost basis consistent
Count the vessel, wick, fragrance, wax, label, making time and appropriate overhead/shipping allocations. Do not include an order-level fixed fee in full for every candle in a multi-candle order. Keep price and costs on a comparable tax basis; the tool does not calculate tax.
For bundles, add extra gift-box and assembly costs once. Use the gift-set planner and review the formula methodology.