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Soap Making Forum > Soapmaking & Candle Business Forum > General Business Forum > Pricing Time
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Old 06-12-2017, 04:45 AM   #11
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For starters, you shouldn't be thinking in terms of 2x or 5x material costs. Wholesale is 2x ALL costs. Materials, time, overheads (power, rent, insurance etc) and retail is 2x wholesale. That's a general rule of thumb, if the end price is 6.37 then you might round it to something more useful.

For many people that might well price them out of the market, which means that their costs are too high or everyone else is under pricing.

If costs are too high, lower the material cost or decrease the time taken.

There's no question that you're right. In my case I have a hobby that became a passion that became a business. For myself, I'm a better hobbiest than business person. I probably could have aptly titled my reply "What Not To Do"


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Old 06-12-2017, 04:52 AM   #12
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But you do make a good point - many people enjoy making soap and so the time is far lower in their calculations, if it's there at all, when pricing. It makes it much harder for people who do it as a living rather than as a side hobbysiness.


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Old 06-12-2017, 01:51 PM   #13
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"...many people enjoy making soap and so the time is far lower in their calculations, if it's there at all, when pricing. It makes it much harder for people who do it as a living rather than as a side hobbysiness...."

That is so very true. I can't count the number of times what I do in my day job has been dismissed as "mere craft" and "too expensive" just because it involves leather rather than clay, fiber, paint, metal, etc. Little kids make things in leather, so just "how hard can that be?" In the consumer's eye there is little difference between leather as a hobby and leather as a profession and as art.

I try my best to price my "hobby products" comparable to how I would price them if I was doing the work for a living. If people don't want to buy items for a fair price, I've learned that this extinguishes my interest in making such products. Better to make and give them away or make them for myself just for fun. That keeps my interest alive.
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Old 06-12-2017, 02:45 PM   #14
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Soapmaker 3 is excellent for this reason. I do not pay myself at all, cost of my product times 5, gives me enough. some are times 6 but others are to fiil the space and sometimes it times 3 .
I am like Czmaha, whatever I make , it keeps me happy and a bit for the bills. At least making my products pays for booth rent, supplies
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Old 06-12-2017, 05:04 PM   #15
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Most manufacturers actually do use 2 or 3 times materials as pricing. There are more sophisticated ways to track things, but should a soaper try to calculator how much energy is used to melt oils and run their stick blender? Power their scale? Calculator the storage rates of the stuff on the shelves vs the stuff in the fridge? That's not do-able on a small scale.

So 2x or 3x material is a good rule to use.
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Old 06-12-2017, 06:18 PM   #16
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But that completely ignores one of the most expensive costs - time! One can at least work out how much it would cost to heat the same amount of water and that is a step in the right direction. Not to mention the cost of insurance needs to be factored in.

As I said elsewhere, a soaping business is much more than just soaping, it's also running a business. If it's not done well, it can be worse than having a bad product
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Old 06-12-2017, 06:46 PM   #17
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Quote:
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Most manufacturers actually do use 2 or 3 times materials as pricing. ...
Not in my experience they don't. What's the cost of materials for a silicon chip? Maybe you meant 2 or 3 times CoGS?
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Old 06-30-2017, 11:50 PM   #18
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In answer to the OP, your time is worth what someone is willing to pay you for it. So, basically whatever your day job pays you. And if you don't have one, then whatever job you think you could keep would pay you. And barring that, minimum wage.

But really, the time factor is important because to run a real business, you yourself cannot make the soap anymore. You'll have lots of other things to occupy your time, so you ain't going to be making soap. And even if you want to and set aside the time, you need to have an assistant and you'll be paying them. So, figure whatever the prevailing wage is in your neck of the woods and go from there. For reference, a cosmetic compounder's average wage is $15 an hour nationally.

And all that said, if this is a hobby, just charge the little girls whatever they can comfortably afford or give it to your daughter and let her sell it. Maybe she'll learn some skills. Or "sell" it to her on credit. I dunno. You don't have to sell soap.
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Old 07-02-2017, 02:10 AM   #19
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To be clear, my oldest is 30,and she's talking about her fellow teachers. She's an ESL teacher at a school for immigrant students.
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Old 07-06-2017, 02:53 AM   #20
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To be clear, my oldest is 30,and she's talking about her fellow teachers. She's an ESL teacher at a school for immigrant students.
Oh, I see. Well, do what makes you happy. Life's too short to be sad. Don't turn your hobby into a job if you don't want to. Job's aren't fun.


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