A seasonal candle sells well, so you approve a repeat run at the same retail price.
The second run may use fragrance oil from a newer purchase, vessels from a different supplier shipment, extra cartons ordered in a rush, or more labor because the pour did not yield as many sellable candles. The price tag can stay at $30 while the money left by each sale quietly changes.
A seasonal candle reorder margin bridge compares the first and second runs of the same SKU. It shows whether candle margins moved because of batch yield, fragrance oil costs, packaging costs, vessels, freight, or another specific driver.
The same selling price does not preserve the same margin
Seasonal collections move quickly. A reorder may be approved while the first run is still shipping, before every invoice and production result has been reviewed. An old unit cost may no longer describe the next run.
Start with a simple operating measure:
Run contribution = revenue from the run − variable costs committed to the run.
For this management review, variable costs may include wax, wick, fragrance, vessel, lid, label, package, payment fees, run-specific freight, and other costs that change with the production or sale. Use definitions that match your normal financial review; this worksheet is not a substitute for accounting or tax advice.
If the repeat run uses the same price but creates fewer sellable units or carries higher variable cost, its contribution falls. Revenue alone will not tell you why.
Set one comparable baseline before reviewing the reorder
Use the first run as the baseline only after checking that its record is complete. If you are still planning the original launch, begin with the seasonal candle margin check before launch.
For the first and repeat runs, record the same fields:
- units committed to production;
- sellable units released;
- units sold and actual selling price;
- material and packaging cost for the run;
- run-specific freight, fees, and outside labor;
- held, rejected, sampled, or damaged units;
- total run contribution and contribution rate.
Do not compare an estimated first-run cost with an actual second-run cost without labeling the difference. Rebuild both sides from invoices and production records when possible. Use the guide to updating candle costs when materials change to establish current component cost.
Build a five-driver run-to-run margin bridge
Begin with the first run’s contribution. Then add each second-run change as a positive or negative effect:
- Sellable-yield effect: contribution lost because fewer units were available to sell.
- Fragrance effect: the change in fragrance oil costs for the full run.
- Vessel effect: the change in jar, tin, lid, or other primary container cost.
- Packaging effect: the change in label, carton, insert, or shipping protection cost.
- Freight or exception effect: rush shipping, expedited materials, rework, or another run-specific cost.
The bridge should reconcile exactly:
First-run contribution + signed driver effects = repeat-run contribution.
A driver that improves contribution is positive; one that reduces it is negative. Keep every effect attached to a named input so the arithmetic and conclusion cannot drift apart.
Worked example: a 200-candle repeat run
The first run releases 200 sellable candles. All sell at $30, producing $6,000 in revenue. Baseline variable cost is $2,400, or $12 per candle.
First-run contribution = $6,000 − $2,400 = $3,600.
The repeat run again commits materials for 200 candles, but only 190 become sellable within the review window. At the unchanged $30 price, revenue is $5,700. The $300 revenue difference is the sellable-yield effect.
The repeat run also carries these increases:
- fragrance oil: $100 more;
- vessels and lids: $120 more;
- labels and cartons: $70 more;
- rush freight: $80 more.
The bridge is:
$3,600 − $300 − $100 − $120 − $70 − $80 = $2,930.
Repeat-run contribution is $2,930, or 51.4% of $5,700 revenue. The first run produced a 60% contribution rate. The selling price did not change, yet the rate fell by 8.6 percentage points.
The result shows a combined $670 decline: a $300 sellable-yield effect and $370 of purchasing, packaging, and freight effects. Each needs a different response.
Separate supplier inflation from production loss
A supplier increase and a yield problem are not interchangeable. If fragrance or vessel cost rose, options include negotiating quantity, changing purchase timing, simplifying the package, adjusting price, or changing the product plan.
If 10 units were held or rejected, investigate the production record. Was the expected fill quantity wrong? Did wick placement, vessel damage, surface finish, fragrance behavior, or a release check remove units from sellable inventory? Record the actual reason rather than automatically assigning every missing unit to “waste.”
Packaging costs deserve their own line. A lower carton price can be offset by a large minimum order that leaves cash in seasonal stock. Rush freight may indicate a supplier delay, but it may also reveal that the reorder was approved without checking material coverage.
Turn each driver into an operating decision
Assign one action to each material bridge line:
- Yield: correct the batch assumption, production method, or release checkpoint.
- Fragrance: update the current cost and review the purchase quantity.
- Vessel: confirm the supplier price, freight treatment, and damage rate.
- Packaging: separate reusable components from seasonal-only materials.
- Rush freight: identify the order date or approval delay that created the exception.
Then decide whether the repeat run still earns enough contribution for the production time and capacity it uses. Before increasing volume, use the seasonal candle production capacity worksheet to check whether the reorder crowds out core products or other committed work.
Add a margin gate before the next reorder
Do not let sell-through alone authorize the next batch. Set a short approval gate that requires:
- current cost for every component;
- expected and minimum sellable yield;
- confirmed selling price and channel mix;
- available material and packaging quantities;
- expected contribution and required minimum rate;
- one owner for approving exceptions.
After the selling window closes, use the seasonal candle margin closeout to reconcile the whole collection, including discounts, remaining finished goods, and stranded packaging. The bridge answers what changed between two runs; the closeout answers what the completed collection actually delivered.
Frequently asked questions
Should a candle reorder use the first run’s cost or current cost?
Use current supplier and production costs for the reorder decision. Keep the first run’s actual cost as the comparison baseline, then show each change rather than overwriting the old record.
How should held or rejected candles appear in the bridge?
Record the units separately and include their cost in the run. Show lost sellable output as a yield effect, then note whether held units may later be released or reworked.
Is a lower contribution rate always a reason to stop the seasonal candle?
No. The product may still meet the business’s required return or serve a deliberate customer or assortment goal. The bridge provides the tradeoff; the owner still sets the threshold.
When should the reorder margin bridge be updated?
Update it after the repeat run has a reliable sellable quantity and current invoices. Reopen it if a late freight bill, supplier credit, release decision, or material adjustment changes a named driver.
Practical takeaway
A successful first run does not freeze the economics of the next one. Compare the same fields, bridge the contribution change, and give sellable yield, fragrance oil costs, vessels, packaging costs, and freight separate lines.
Complete that bridge before approving another reorder. A named driver can be corrected, priced, accepted, or avoided. A vague margin problem usually just follows the next batch into production.
