Bar Price

[Dean]

Fellow USA soapers,

How much do you sell each bar for?

If this query has been addressed in a recent thread, please re-direct me.

Thanks in advance.

 

[jcandleattic]

I sell mine for $6 each or 4/$20, but due to increased costs I've been incurring recently I feel I may have to increase my prices for this selling season. I may end up upping my prices to $7 or 4/$25.

These answers will always be subjective to what your current market will allow/handle, your COG pricing, labor, etc., etc, and your profit margins. One thing most people just starting to sell (not sure this is applicable to you, I don't know if you sell, and if you have, for how long) forget is that just because you are working for yourself, don't forget to give yourself a salary. It doesn't have to be a lot, but what is your time worth to you?
I don't work for free for any employer, including myself.

 

[The Efficacious Gentleman]

At least costs (ALL costs) X 2 for wholesale, wholesale X 2 for retail.

If that prices you out of the market, you need to lower your costs

 

[Zany_in_CO]

How much do you sell each bar for?

Itemize cost of each raw ingredient, including cost of shipping. Add those up. Then multiply by a factor of
X 3.5 for retail price
X 2.5 for wholesale price
Here's one example of a CP goat milk soap I make for a wholesale customer:

In this case, wholesale price is $4.35 per bar. Customer sells for $6.50 per bar = $2.15 profit X 16 bars = $34.40

Once you know what it costs to make, factor in what your local market will bear. Adjust the sales price accordingly. If necessary, sub less expensive oils, additives, or fragrance to make a viable profit. Packaging, labels are added "at cost".

 

[The Efficacious Gentleman]

Please, ignore that.

Costs include labour and overheads like insurance and utilities. If you're leaving any costs involved in making something out of the costs (especially something as expensive as labour) then you are not taking it seriously

 

[Dean]

Please, ignore that.

Costs include labour and overheads like insurance and utilities. If you're leaving any costs involved in making something out of the costs (especially something as expensive as labour) then you are not taking it seriously

I was just wondering not so much to make a profit but what I should charge people if they asked to buy a bar...the market rate.

 

[jcandleattic]

I was just wondering not so much to make a profit but what I should charge people if they asked to buy a bar...the market rate.

If you don't care about profit then why bother selling at all? I mean what if you decide to make this a full time business, do you want to risk alienating the ones that bought at what you thought was market, but then after doing all the cost analysis end up needing to raise your prices (for whatever reason)?
I guess it's just a personal choice, but me personally, I wouldn't just throw a price out there without at least figuring costs first.

 

[Zany_in_CO]

...then you are not taking it seriously

Oh, I take it seriously! I've been using that formula for 14 years and made at least 50% profit every year, even when I first started, and even when I sell off my "Retireds" at a discount at the end of the season.

If that prices you out of the market, you need to lower your costs

Good advice. It really is a matter of watching expenses, adjusting cost of raw materials as needed, garnering sales and building enough profit margin into the product, whether it's soap or other B&B products, in the first place to make it all worthwhile.

 

[The Efficacious Gentleman]

That's the interesting thing - what is "market rate"? You'd have to do a good look around locally to see what that is, as it can vary from location to location. It's also interesting because it removes that element of "my soap is now worth more as I am properly selling even though nothing in the soap itself has changed to warrant the increased price" AND it means that local sellers are not facing "competition" which isn't actually pricing in the same manner, which can do so much damage to the local market (ask many of the people here who sell at markets, for example)

 

[Dean]

I mean what if you decide to make this a full time business, do you want to risk alienating the ones that bought at what you thought was market, but then after doing all the cost analysis end up needing to raise your prices (for whatever reason)?

Good point. I thought of that too.

That's the interesting thing - what is "market rate"? You'd have to do a good look around locally to see what that is, as it can vary from location to location.

Another good point. I looked up the leading "natural" bar price online. It was considerably cheaper than in a store located in my city...what has become an expensive metro area.

 

[Lin19687]

You need to go to local farmers markets and craft fairs to see what is being sold.

NOTICE the SIZE of the bars and the price.

Here I see 3-4 oz bars selling for $6. They don't sell much of them.
I sell $7 here and my bars were over 6.5 oz. This year I am making them a bit smaller 5.5oz but same price