The festive season, particularly Christmas, is the busiest
time of year for candle makers and retailers. While it offers tremendous
revenue potential, it also comes with a unique set of challenges, especially
for small-scale businesses. For those in the candle industry, peak season
demands careful planning, resource management, and adaptability to meet
customer expectations and thrive in a highly competitive market.
At Candle Shack, having worked with “Candlepreneurs” for
over a decade, here’s what we have identified as key challenges small-scale
candle makers face during the Christmas season, and our best strategies to
overcome them.
Peak season puts pressure on suppliers, and small-scale candle makers may find themselves at a disadvantage when needing to buy or top up on wax, wicks, and fragrance oils. For example, many candlepreneurs have reported running out of sought-after scents like cinnamon or vanilla due to high demand.
How to overcome it:
• Build relationships with reliable suppliers, who not only offer quality materials but also have stock in hand to support SMEs as opposed to preferring large MoQs.
• Start ordering your supplies as early as possible with a look at past sales data and this year’s trends to predict demand and stock required
• A good plan allows you to order in bulk, benefitting from bulk pricing, which can significantly reduce stress later on.
• Consider sourcing sustainable or alternative materials such as natural waxes and ethical fragrance oils, which may also align with consumer demands for eco-friendly products. This can differentiate your brand while also mitigating supply risks.
Balancing your inventory can be a delicate art during peak periods. Overstocking ties up valuable capital, while understocking can result in missed “in the moment” sales opportunities leading disappointed customers.
How to overcome it:
• Use inventory management software like Inventora to keep track of stock levels and sales trends.
• Analyse historical sales data along with market indicators and your sales opportunities to forecast demand accurately. If you’re at a limited period festive market, anticipate a rush between certain dates and plan inventory accordingly
As demand soars, we find small-scale candle manufacturers can often struggle to ramp up production when there is a sudden influx of orders. Scaling up production can feel daunting, but there are several ways to increase capacity without losing that artisanal touch.
How to overcome it:
• Invest in more efficient tools, such as larger melting pots or moulds, to speed up production without sacrificing quality
• Identify bottlenecks in your production process and implement systems to improve efficiency. Automating tasks like labelling, packaging, or even pouring candles can help you scale up faster.
• Bringing in temporary staff during peak season can help you meet production targets without the long-term commitment of full-time hires.
• Use standardised recipes, documented processes and implement strict quality check measures especially among seasonal staff to avoid variations in quality.
The increased demand during peak season often requires upfront investment in materials or a sudden large investment to meet a demand surge. Poor cash flow management can lead to difficulties in fulfilling orders and growing your business during the busiest time of the year.
How to Overcome It:
• The big “F” word really comes into play here, and its forecasting. Forecasting is the predictive outcome based on last year’s performance, this year’s growth (or contraction) expectations and your planned market exposure during the peak season.
• Encourage customers, especially those who tend to place larger orders, to order early by offering pre-holiday promotions, which can help balance your cash flow and spread out demand over a longer period.
• Negotiate better payment terms with suppliers to improve your cash flow, allowing you to stock up on materials without significant upfront costs.
While Christmas is a prime time for sales, it’s also the most competitive period, with big brands and smaller artisanal ones all competing for the same customers in a limited period of time. Standing out in a saturated market and effectively reaching target audience is a challenge, with or without a considerably-sized marketing budget.
How to Overcome It:
• Develop your product range for your target customers; think about distinctive labelling, quality fragrances, additions such as embedded wax melts or vibrant colours to make your products stand out from the crowd
If you’re an online business, then delivery and fulfilment poses a challenge during peak season, and truthfully, this is a challenge for businesses of all sizes. Couriers are in high demand, error rates shoot through and there’s nothing worse than a disappointed customer to really put a damper on your Christmas Spirit.
How to Overcome It:
• Ensure you have sufficient packaging materials, labels, and staff on hand to meet the spike in online demand.
• Streamline your packing and shipping processes. For instance, have pre-prepared packaging ready to go to save time.
• Set realistic shipping expectations with customers, clearly stated in messages, emails and on your website. If deliveries are expected to take longer due to high demand, make sure your customers are aware.
• Partner with reliable couriers to ensure timely delivery. Using tracked services can also give customers peace of mind.
