Pricing Decorative Wrapping?

[Melharma]

I'm wanting to get some pretty organza bags and fancy bows, stuff like that and wondering on pricing. So far I have been figuring my costs/ labor/ packaging and then multiplying it by 4. So if I can make my bar of soap for $1 then my price has been $4 retail. Now if I start adding in decorative items that maybe cost me .30 do I add that to the $1 and then my retail price would be $5.20? Or do I add that to the $4 to be $4.5?

Just wondering how it should be done to best set myself up for success, thanks!

 

[BakingNana]

I calculate mine by including ingredients, packaging, labeling, and my time. In my case I did not include overhead as far as space usage or tools. We did not add any space for soaping; we just repurposed it. And I figured I'd have the tools whether I was selling or not since I can't NOT make soap. I was reading recently (sorry, can't remember where but will post if I do) that the old 4x formula has pretty much become a 3x formula. You need to assess your market to see what similar products are selling for, and if they are selling successfully. What you don't want to do is price something so low that you find you have to raise prices relatively soon, or price something higher than the market will bear. Packaging your soaps so that they are eye-catching and yet affordable for the consumer can be a challenge. Good luck!

 

[Melharma]

Thanks, that's what I was thinking. I'm fairly new to this business and still learning but I just love playing with bows and fancy packaging so we will see after I raise my prices. That's interesting, that because of the economy the going rate is lowering, thanks for the info. Good luck to you!

 

[BakingNana]

You, too!

 

[Stinkydancer]

A little off topic but if you love that kind of stuff check out Papermart- it's inexpensive and CS is great and shipping is fast. Their organza bags are really nice quality with gorgeous colors.

Don't get me started on bows and boxes.

 

[Melharma]

A little off topic but if you love that kind of stuff check out Papermart- it's inexpensive and CS is great and shipping is fast. Their organza bags are really nice quality with gorgeous colors.

Don't get me started on bows and boxes.

great thanks for the tip, I'll check them out!