{"product_id":"candle-production-running-expenses","title":"Analyzing Monthly Running Costs for Candle Manufacturing Operations","description":"\u003cdiv class=\"container_new_design\"\u003e\n\u003cdiv class=\"text-section text-1_new_design\"\u003e\n\u003cdiv class=\"line_top\"\u003e\u003c\/div\u003e\n\u003ch2\u003eCandle Manufacturing Running Costs\u003c\/h2\u003e\n\u003cp\u003eExpect average monthly running costs for Candle Manufacturing to hover around \u003cstrong\u003e$38,775\u003c\/strong\u003e in 2026, driven primarily by payroll and raw material inventory This estimate includes $16,146 for wages, $4,250 in fixed overhead (like rent and depreciation), and roughly $18,379 in variable costs (COGS and fulfillment fees) Your initial cash requirement is high, demanding a minimum cash balance of \u003cstrong\u003e$1192 million\u003c\/strong\u003e in January 2026 to cover significant capital expenditures like $15,000 for melters and $12,000 for e-commerce development To achieve the projected $426,000 EBITDA in Year 1, you must defintely manage raw material costs—like Soy Wax at $100 per unit and Glass Vessels at $120 per unit—and optimize shipping costs, which start at 80% of revenue Focus on scaling production volume (30,000 units forecast for 2026) to drive down the per-unit COGS\n\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"image-section image-1_new_design\" id=\"main_article_image\"\u003e\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\n\u003cspan style=\"color: #6067F2;\"\u003e7 Operational Expenses to Run \u003c\/span\u003eCandle Manufacturing\u003c\/h2\u003e\u003cbr\u003e\n\u003ctable id=\"dwnld_tbl_id\"\u003e\n\u003ctr\u003e\n\u003cth\u003e#\u003c\/th\u003e\n\u003cth\u003eOperating Expense\u003c\/th\u003e\n\u003cth\u003eExpense Category\u003c\/th\u003e\n\u003cth\u003eDescription\u003c\/th\u003e\n\u003cth\u003eMin Monthly Amount\u003c\/th\u003e\n\u003cth\u003eMax Monthly Amount\u003c\/th\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e1\u003c\/td\u003e\n\u003ctd\u003eRaw Material Inventory\u003c\/td\u003e\n\u003ctd\u003eVariable COGS\u003c\/td\u003e\n\u003ctd\u003eThis covers Soy Wax, Fragrance Oil, and Glass Vessels, totaling about $9,500 monthly based on 2026 volume.\u003c\/td\u003e\n\u003ctd\u003e$9,500\u003c\/td\u003e\n\u003ctd\u003e$9,500\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e2\u003c\/td\u003e\n\u003ctd\u003eWages and Salaries\u003c\/td\u003e\n\u003ctd\u003eFixed Labor\u003c\/td\u003e\n\u003ctd\u003eThis is the largest expense, averaging $16,146 monthly in 2026 for staff including the CEO and production leads; it's defintely the biggest fixed burn.\u003c\/td\u003e\n\u003ctd\u003e$16,146\u003c\/td\u003e\n\u003ctd\u003e$16,146\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e3\u003c\/td\u003e\n\u003ctd\u003eWorkshop and Office Rent\u003c\/td\u003e\n\u003ctd\u003eFixed Overhead\u003c\/td\u003e\n\u003ctd\u003eThis is a fixed cost of $2,500 per month, necessary for production space and inventory storage.\u003c\/td\u003e\n\u003ctd\u003e$2,500\u003c\/td\u003e\n\u003ctd\u003e$2,500\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e4\u003c\/td\u003e\n\u003ctd\u003eShipping and Fulfillment\u003c\/td\u003e\n\u003ctd\u003eVariable Fulfillment\u003c\/td\u003e\n\u003ctd\u003eThis expense starts high at 80% of revenue in 2026 and must be negotiated down toward 50% by 2030.\u003c\/td\u003e\n\u003ctd\u003e$750\u003c\/td\u003e\n\u003ctd\u003e$16,146\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e5\u003c\/td\u003e\n\u003ctd\u003ePayment Processing Fees\u003c\/td\u003e\n\u003ctd\u003eVariable Transaction Cost\u003c\/td\u003e\n\u003ctd\u003eThis variable cost begins at 35% of sales revenue in 2026, aiming to drop to 25% as volume increases.\u003c\/td\u003e\n\u003ctd\u003e$750\u003c\/td\u003e\n\u003ctd\u003e$16,146\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e6\u003c\/td\u003e\n\u003ctd\u003eFixed General Overhead\u003c\/td\u003e\n\u003ctd\u003eFixed Overhead\u003c\/td\u003e\n\u003ctd\u003eStable monthly costs include Accounting\/Legal ($400), Insurance ($150), and Software Subscriptions ($200), totaling $750.\u003c\/td\u003e\n\u003ctd\u003e$750\u003c\/td\u003e\n\u003ctd\u003e$750\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e7\u003c\/td\u003e\n\u003ctd\u003eEquipment Depreciation \u0026amp; Maintenance\u003c\/td\u003e\n\u003ctd\u003eFixed \u0026amp; Variable Asset Cost\u003c\/td\u003e\n\u003ctd\u003eThis covers the $500 non-cash depreciation plus 02% of revenue allocated for equipment maintenance.\u003c\/td\u003e\n\u003ctd\u003e$500\u003c\/td\u003e\n\u003ctd\u003e$16,146\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr\u003e\n\u003ctd\u003e\u003cb\u003e\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003eTotal\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003eAll Operating Expenses\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003e\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003e$30,896\u003c\/b\u003e\u003c\/td\u003e\n\u003ctd\u003e\u003cb\u003e$77,334\u003c\/b\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/table\u003e\n\u003cdiv class=\"dwnld_btn_div\"\u003e\u003cbutton id=\"dwnld_btn_id\" class=\"dwnld_btn_clss\"\u003eDownload Table in XLSX\u003c\/button\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e \u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat is the total monthly running budget required to sustain Candle Manufacturing operations?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe baseline monthly budget for Candle Manufacturing starts at \u003cstrong\u003e$4,250\u003c\/strong\u003e in fixed overhead, which must be covered before factoring in the variable costs associated with producing \u003cstrong\u003e2,500 units\u003c\/strong\u003e monthly, a key step toward understanding \u003ca href=\"\/blogs\/kpi-metrics\/candle-production\"\u003eWhat Is The Primary Goal Of Candle Manufacturing?\u003c\/a\u003e To get the full running budget, you must add the total variable cost of goods sold (COGS) and operating expenses (OpEx) for those projected units.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Overhead Coverage\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMonthly fixed costs are set at \u003cstrong\u003e$4,250\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis covers base overhead like rent and software subscriptions, defintely.\u003c\/li\u003e\n\u003cli\u003eBased on 30,000 units projected for 2026, your monthly volume target is \u003cstrong\u003e2,500 units\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eYou must generate enough gross profit to cover the $4,250 before seeing any net income.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eProjecting Variable Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eVariable costs scale directly with every candle produced.\u003c\/li\u003e\n\u003cli\u003eThese costs include soy wax, premium fragrance oils, and cotton wicks.\u003c\/li\u003e\n\u003cli\u003eThe \u003cstrong\u003e30,000 unit\u003c\/strong\u003e volume projection is set for the year \u003cstrong\u003e2026\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eYou must calculate the variable cost per unit (VCPU) for all materials and direct labor.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhich recurring cost categories represent the largest percentage of monthly operating expenses?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eFor Candle Manufacturing, average monthly wages at \u003cstrong\u003e$16,146\u003c\/strong\u003e are the largest fixed operating expense when compared directly to variable material costs near \u003cstrong\u003e$9,500\u003c\/strong\u003e; this analysis helps frame your focus, especially when considering if Candle Manufacturing is viable, so review \u003ca href=\"\/blogs\/profitability\/candle-production\"\u003eIs Candle Manufacturing Profitable In Your Area?\u003c\/a\u003e to see how these costs stack up against potential sales.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Cost Drivers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eMonthly wages are the primary fixed expense at \u003cstrong\u003e$16,146\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eVariable material costs average around \u003cstrong\u003e$9,500\u003c\/strong\u003e monthly.\u003c\/li\u003e\n\u003cli\u003eWages represent a significant portion of overhead that must be covered regardless of sales volume.\u003c\/li\u003e\n\u003cli\u003eThis figure defintely sets your baseline burn rate before production starts.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eShipping Expense Leverage\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eShipping fees are pegged at \u003cstrong\u003e80% of total revenue\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis high percentage means shipping costs scale directly with every sale made.\u003c\/li\u003e\n\u003cli\u003eIf revenue is $50,000, shipping alone consumes $40,000 of that top line.\u003c\/li\u003e\n\u003cli\u003eFocus on optimizing direct-to-consumer fulfillment or negotiating carrier rates immediately.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much working capital and cash buffer is needed to cover CapEx and initial negative cash flow?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eThe minimum cash buffer for your Candle Manufacturing operation needs to cover initial capital expenditures and early operating losses, totaling roughly \u003cstrong\u003e$1,192 million\u003c\/strong\u003e runway before sales stabilize. This figure accounts for immediate asset purchases like wax melters and initial stock, which you can explore further regarding profitability in \u003ca href=\"\/blogs\/profitability\/candle-production\"\u003eIs Candle Manufacturing Profitable In Your Area?\u003c\/a\u003e\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eImmediate Capital Outlay\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFund \u003cstrong\u003e$15,000\u003c\/strong\u003e for essential wax melters.\u003c\/li\u003e\n\u003cli\u003eSecure \u003cstrong\u003e$10,000\u003c\/strong\u003e for initial raw material inventory.\u003c\/li\u003e\n\u003cli\u003eTotal hard asset funding required is \u003cstrong\u003e$25,000\u003c\/strong\u003e.\u003c\/li\u003e\n\u003cli\u003eThis covers the physical production setup costs defintely.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eTotal Cash Runway Needed\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBudget for a \u003cstrong\u003e$1,192 million\u003c\/strong\u003e total cash buffer.\u003c\/li\u003e\n\u003cli\u003eThis figure covers sustained negative cash flow months.\u003c\/li\u003e\n\u003cli\u003eEnsure coverage until sales veolcty hits projections.\u003c\/li\u003e\n\u003cli\u003eIf onboarding suppliers takes 14+ days, production risk rises.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eIf sales volume misses the 30,000-unit forecast, how will we cover the $4,250 monthly fixed overhead?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003cp\u003eIf your Candle Manufacturing volume dips below \u003cstrong\u003e30,000\u003c\/strong\u003e units, you must immediately pull cost levers, focusing on headcount adjustments or renegotiating input prices to cover the \u003cstrong\u003e$4,250\u003c\/strong\u003e monthly fixed overhead. Missing volume means your contribution margin per unit has to work harder to absorb those static costs, so speed matters.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eAdjusting Headcount When Sales Fall\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eIf sales volume is low, you need to look hard at your \u003cstrong\u003e10 Full-Time Equivalent (FTE)\u003c\/strong\u003e staff, because labor is often the biggest fixed cost after rent, and understanding initial setup costs is key—check out \u003ca href=\"\/blogs\/startup-costs\/candle-production\"\u003eHow Much Does It Cost To Open And Launch Your Candle Manufacturing Business?\u003c\/a\u003e for context on initial burn rate.\u003c\/li\u003e\n\u003cli\u003eIdentify non-essential tasks right now.\u003c\/li\u003e\n\u003cli\u003eModel payroll savings versus potential productivity loss.\u003c\/li\u003e\n\u003cli\u003eIf volume drops 10%, calculate if one FTE can be cut safely.\u003c\/li\u003e\n\u003cli\u003eTrack output per person closely to justify staffing levels.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eNegotiating Input Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eYour contribution margin depends heavily on your cost of goods sold (COGS), so target the major material expenses first.\u003c\/li\u003e\n\u003cli\u003eThe \u003cstrong\u003e$100\u003c\/strong\u003e cost for Soy Wax and the \u003cstrong\u003e$120\u003c\/strong\u003e for the Glass Vessel represent significant leverage points for better pricing terms.\u003c\/li\u003e\n\u003cli\u003eAsk suppliers for volume discounts even on smaller, immediate orders.\u003c\/li\u003e\n\u003cli\u003ePush for \u003cstrong\u003e30-day\u003c\/strong\u003e payment terms instead of Net 15 to help cash flow.\u003c\/li\u003e\n\u003cli\u003eDefintely review supplier contracts quarterly to lock in better rates.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e \u003cdiv class=\"card_smpl\"\u003e\n\n\u003cdiv class=\"double_border\"\u003e\n\n\u003cdiv class=\"card_smpl_header\"\u003e\n\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-plus-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\n\n\u003ch3\u003eKey Takeaways\u003c\/h3\u003e\n\n\u003c\/div\u003e\n\n\u003cul class=\"lst_crct_blog\"\u003e\n\n\u003cli\u003eThe average monthly running cost for candle manufacturing operations is projected to stabilize around $38,775 in 2026, driven primarily by labor and inventory costs.\u003c\/li\u003e\n\n\u003cli\u003ePayroll, averaging $16,146 monthly, and variable expenses like shipping (starting at 80% of revenue) represent the dominant recurring cost categories.\u003c\/li\u003e\n\n\u003cli\u003eAchieving initial production goals requires a substantial upfront minimum cash balance of $1.192 million to fund significant capital expenditures and initial inventory purchases.\u003c\/li\u003e\n\n\u003cli\u003eTo secure the projected $426,000 Year 1 EBITDA, the business must successfully scale production volume and actively manage high initial variable costs like fulfillment fees.\u003c\/li\u003e\n\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 1\n: \u003cspan style=\"color: #126CFF;\"\u003eRaw Material Inventory\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInventory Cost Snapshot\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eRaw material inventory is a major variable outlay, hitting about \u003cstrong\u003e$9,500 monthly\u003c\/strong\u003e in 2026 projections. This cost directly reflects your production volume for key components like wax, oil, and vessels. Managing purchase orders now dictates near-term cash flow requirements.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMaterial Cost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$9,500\u003c\/strong\u003e estimate covers the three main inputs needed to make your artisanal candles based on 2026 volume plans. You must track units produced against the cost of Soy Wax (\u003cstrong\u003e$100\/unit\u003c\/strong\u003e), Fragrance Oil (\u003cstrong\u003e$60\/unit\u003c\/strong\u003e), and Glass Vessels (\u003cstrong\u003e$120\/unit\u003c\/strong\u003e). This forms your baseline material Cost of Goods Sold (COGS).\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eWax: $100 per unit\u003c\/li\u003e\n\u003cli\u003eOil: $60 per unit\u003c\/li\u003e\n\u003cli\u003eVessels: $120 per unit\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCutting Material Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTo lower this variable spend, focus on supplier consolidation and volume tiering immediately. Buying larger batches of fragrance oil or vessels might unlock 5% to 10% savings, but watch out for increased storage costs. Defintely don't over-order if your lead times are short or your SKU count is high.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eNegotiate bulk discounts now.\u003c\/li\u003e\n\u003cli\u003eTest supplier quotes quarterly.\u003c\/li\u003e\n\u003cli\u003eHold 3 months of inventory max.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInventory Control Lever\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour primary control lever is setting the right safety stock level for glass vessels, which are the most expensive component at \u003cstrong\u003e$120 each\u003c\/strong\u003e. Too much stock ties up capital; too little stops production lines dead. This cost is variable and scales directly with your sales volume.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 2\n: \u003cspan style=\"color: #126CFF;\"\u003eWages and Salaries\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePayroll Pressure\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eWages and salaries represent your top operating cost, projected at \u003cstrong\u003e$16,146 monthly\u003c\/strong\u003e by 2026. This expense funds the core team: the Founder\/CEO at \u003cstrong\u003e$90,000 annually\u003c\/strong\u003e, a Production Lead earning \u003cstrong\u003e$55,000 yearly\u003c\/strong\u003e, plus initial Candle Maker hires. Managing this payroll load dictates your path to profitability.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePayroll Components\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$16,146 monthly\u003c\/strong\u003e expense is driven by fixed salaries for key personnel needed for production scaling. You must budget for the Founder\/CEO salary of \u003cstrong\u003e$90,000\/year\u003c\/strong\u003e and the Production Lead salary of \u003cstrong\u003e$55,000\/year\u003c\/strong\u003e. These figures exclude payroll taxes and benefits, which will increase the true burden. Honestly, that $16k average is just the starting point.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFounder salary: $90,000\/year\u003c\/li\u003e\n\u003cli\u003eLead salary: $55,000\/year\u003c\/li\u003e\n\u003cli\u003eCandle Maker staff wages\u003c\/li\u003e\n\u003cli\u003eEmployer payroll burden (Taxes\/Benefits)\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eControlling Labor Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince the Founder\/CEO and Production Lead salaries are fixed commitments, you can’t cut them quickly. Focus on the initial Candle Maker staff by using \u003cstrong\u003epart-time or contract labor\u003c\/strong\u003e until volume justifies full-time hires. Avoid adding headcount too early; wait until production volume demands it, not just desire.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eDelay hiring staff past the break-even point.\u003c\/li\u003e\n\u003cli\u003eUse performance bonuses instead of base salary hikes.\u003c\/li\u003e\n\u003cli\u003eCross-train existing staff for flexibility.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eHeadcount Timing\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eIf you hire the initial Candle Maker staff before achieving the necessary sales velocity, the \u003cstrong\u003e$16,146 monthly\u003c\/strong\u003e wage bill will rapidly drain your cash reserves. Every month you spend $16k before covering it pushes your break-even point further out. That’s a defintely dangerous position for a new manufacturer.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 3\n: \u003cspan style=\"color: #126CFF;\"\u003eWorkshop and Office Rent\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Space Cost\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour workshop and office rent is a fixed commitment of \u003cstrong\u003e$2,500 per month\u003c\/strong\u003e, covering necessary production space and inventory storage. Since this cost doesn't scale with sales volume, you must review the lease annually. Plan for expansion needs now, as moving facilities later disrupts operations. That’s a hard number to absorb if sales lag.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Inputs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$2,500 monthly\u003c\/strong\u003e figure covers your physical footprint for making artisanal candles and storing raw materials like soy wax and glass vessels. To budget accurately, you need the signed lease term, the square footage cost per month, and the date of the next renewal. Honestly, this is a foundational fixed cost.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCovers production space.\u003c\/li\u003e\n\u003cli\u003eIncludes inventory storage.\u003c\/li\u003e\n\u003cli\u003eLease renewal date matters.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eLease Tactics\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eManaging this fixed expense means avoiding long-term handcuffs early on. Look for 12-month leases initially, giving you flexibility if volume explodes faster than expected. A common mistake is signing for five years before proving demand. If onboarding takes 14+ days, churn risk rises if you have to move suddenly.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFavor shorter lease terms.\u003c\/li\u003e\n\u003cli\u003eReview terms every 12 months.\u003c\/li\u003e\n\u003cli\u003eAvoid premature expansion commitments.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eReview Trigger\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eTreat the \u003cstrong\u003eannual lease review\u003c\/strong\u003e as a critical operational checkpoint, not just paperwork. If your \u003cstrong\u003eRaw Material Inventory\u003c\/strong\u003e needs jump significantly above the projected $9,500 monthly spend, you must secure extra storage or negotiate for more square footage immediately. This defintely impacts future COGS calculations.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 4\n: \u003cspan style=\"color: #126CFF;\"\u003eShipping and Fulfillment\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eShipping Cost Pressure\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eShipping costs are your biggest early hurdle, hitting \u003cstrong\u003e80% of revenue in 2026\u003c\/strong\u003e. You must aggressively negotiate carrier rates now, or this variable expense will crush early margins until you hit the projected \u003cstrong\u003e50% by 2030\u003c\/strong\u003e.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhat Fulfillment Covers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFulfillment covers all costs to get the finished candle to the customer, including packaging materials and carrier fees. For 2026, this expense is pegged at \u003cstrong\u003e80% of sales\u003c\/strong\u003e. To model this accurately, you need carrier quotes based on projected unit volume and average package weight\/size. You'll defintely need volume. This dwarfs fixed overhead like workshop rent ($2,500\/month).\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eNegotiating Carrier Rates\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou gain leverage as volume grows, allowing you to push carriers toward better pricing tiers. The goal is cutting this rate from \u003cstrong\u003e80% down to 50%\u003c\/strong\u003e over four years. Focus on consolidating shipments or exploring regional carriers once volume justifies it. Don't wait until 2028 to start these talks.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSecure tiered pricing contracts early.\u003c\/li\u003e\n\u003cli\u003eAudit packaging waste\/size annually.\u003c\/li\u003e\n\u003cli\u003eNegotiate based on 2030 volume targets.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMargin Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eHigh initial shipping costs mean your contribution margin is severely compressed until scale is achieved. If you miss the \u003cstrong\u003e50% target by 2030\u003c\/strong\u003e, you risk needing significantly higher Average Order Value (AOV) just to cover fulfillment expenses, stalling profitability.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 5\n: \u003cspan style=\"color: #126CFF;\"\u003ePayment Processing Fees\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFee Compression Timeline\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003ePayment processing starts high, consuming \u003cstrong\u003e35%\u003c\/strong\u003e of revenue in \u003cstrong\u003e2026\u003c\/strong\u003e. You must aggressively target transaction volume growth to drive this variable cost down to a more sustainable \u003cstrong\u003e25%\u003c\/strong\u003e rate by \u003cstrong\u003e2030\u003c\/strong\u003e. This cost is directly tied to volume and your ability to renegotiate merchant rates.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eEstimating Transaction Drag\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis cost covers interchange, assessment fees, and processor markups for every online sale. To model this, you need projected monthly sales revenue and the assumed blended rate for that period. For \u003cstrong\u003e2026\u003c\/strong\u003e, assume \u003cstrong\u003e35%\u003c\/strong\u003e; use volume scaling assumptions to justify the \u003cstrong\u003e10-point drop\u003c\/strong\u003e to \u003cstrong\u003e25%\u003c\/strong\u003e by \u003cstrong\u003e2030\u003c\/strong\u003e.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCutting Processor Share\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eDon't accept the starting rate; negotiate immediately upon hitting volume tiers. If you process over $100k monthly, you should defintely shop for better interchange-plus pricing structures. A common mistake is letting the processor auto-renew without seeking competitive bids every 18 months.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eInitial Margin Impact\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eWhile \u003cstrong\u003e35%\u003c\/strong\u003e seems extreme, it reflects the initial cost of accepting credit cards for direct-to-consumer sales before volume discounts apply. This high initial percentage significantly pressures your gross margin until scaling unlocks better terms. It's a necessary friction point in the early operational stages.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 6\n: \u003cspan style=\"color: #126CFF;\"\u003eFixed General Overhead\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eFixed Overhead Base\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYour baseline operational stability rests on predictable fixed general overhead, totaling \u003cstrong\u003e$750 monthly\u003c\/strong\u003e. This covers essential compliance and digital infrastructure needed before you sell the first candle. If your rent is $2,500, this $750 is the small, necessary foundation supporting everything else.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOverhead Components\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis \u003cstrong\u003e$750\u003c\/strong\u003e figure is the irreducible minimum for running the business legally and digitally. You need quotes for insurance and subscription lists to nail this down exactly. Accounting and legal services are budgeted at \u003cstrong\u003e$400\u003c\/strong\u003e monthly for compliance.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAccounting\/Legal: $400\u003c\/li\u003e\n\u003cli\u003eInsurance: $150\u003c\/li\u003e\n\u003cli\u003eSoftware: $200\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManaging Stability\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince these costs are fixed, optimization means locking in better annual rates or auditing software usage quarterly. Don't skimp on insurance, but review your software stack for unused seats or overlapping functionality. Defintely bundle annual payments if possible.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eAudit software licenses every quarter.\u003c\/li\u003e\n\u003cli\u003eNegotiate yearly insurance renewals early.\u003c\/li\u003e\n\u003cli\u003eAvoid premium support tiers initially.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOverhead vs. Break-Even\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eFixed overhead, combined with rent ($2,500) and salaries ($16,146), sets your absolute monthly floor. You must cover this total fixed load before contribution margin from sales starts hitting profit. This $19,396 total fixed cost dictates your minimum sales volume target.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch2\u003eRunning Cost 7\n: \u003cspan style=\"color: #126CFF;\"\u003eEquipment Depreciation \u0026amp; Maintenance\n\u003c\/span\u003e\n\u003c\/h2\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eAsset Health Costs\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eYou must budget for \u003cstrong\u003e$500\/month\u003c\/strong\u003e in non-cash depreciation plus \u003cstrong\u003e0.2% of revenue\u003c\/strong\u003e for upkeep. This dual approach separates accounting impact from operational maintenance needs for your manufacturing gear.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCost Breakdown\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis expense covers two things: the scheduled write-down of your melting pots and pouring equipment, which is \u003cstrong\u003e$500 monthly\u003c\/strong\u003e depreciation. Also included is variable maintenance based on usage, set at \u003cstrong\u003e0.2% of gross revenue\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFixed depreciation amount: $500.\u003c\/li\u003e\n\u003cli\u003eVariable rate: 0.2% of sales.\u003c\/li\u003e\n\u003cli\u003eCovers wax melters and pouring machines.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eManage Maintenance Spend\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eSince depreciation is fixed, focus on defintely minimizing the variable maintenance portion. Keep detailed logs of machine run-time to catch small issues before they become expensive failures. Don't skip preventative checks.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eSchedule preventative maintenance checks.\u003c\/li\u003e\n\u003cli\u003eNegotiate service contracts upfront.\u003c\/li\u003e\n\u003cli\u003eTrack machine utilization closely.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-20-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCash vs. Non-Cash\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cp\u003eRemember, depreciation is a non-cash charge that lowers taxable income but doesn't affect immediate cash flow. The \u003cstrong\u003e0.2% maintenance\u003c\/strong\u003e, however, is a true Cost of Goods Sold (COGS) component you must cover with sales volume.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49303666131187,"sku":"candle-production-running-expenses","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/candle-production-running-expenses.webp?v=1782677821","url":"https:\/\/financialmodelslab.com\/products\/candle-production-running-expenses","provider":"Financial Models Lab","version":"1.0","type":"link"}