Image: Clamshell wax melt package with 6-cavity grid in autumn fragrance
The wax melt economics
A standard 2.5oz clamshell of wax melts uses about 2 ounces of wax, $0.40 in clamshell packaging, $0.25 in fragrance, and 8 minutes of labor. Material cost per pack: $0.95.
Retail price: $5-8. Margin per pack: $4-7. Margin percentage: 70-80%. Compare to a 8oz candle jar: material cost $1.20, retail $24, margin 95% — but per-unit margin is similar ($4-7). The advantage of wax melts isn't per-unit margin, it's velocity and cross-sell.
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