How do you calculate your cost per bar?

Soapmaking Forum

Help Support Soapmaking Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

AlicesWonderhands

Well-Known Member
Joined
May 7, 2014
Messages
114
Reaction score
15
Location
Wonderland
WE have a buyer!
They want as much as i can make!!! NOW I have to get serious about pricing... I was estimating and selling at $1 per oz of soap.

What I need to do now, is calculate EXACTLY how much each bar is costing me to make in oil, the rest I can handle.

Also, if you use 16 oz. of oil in a batch of soap, do you get one lb of soap? :confused:

I cant seem to find that answer anywhere else either.
 
Well, the ingredients cost is really simple to calculate. Just take the total cost of the ingredients with shipping, divide it up per gram/ounce, then multiply that amount by the amount you use. A spreadsheet is helpful.

If you're referring to your time, well, you don't really get to dictate that so much since you basically get whatever people are willing to pay you for your soap. Your cut is then the profit. You can't really add it in.
 
Soaping 101 has a ready made spread sheet that does the calculations for you..... I'll look for the link later.
 
The oil is about 60-75% of the soap weight, but I'm kind of freaked out that you're selling already and that you don't know that from experience

There are more than a few threads to figure out cost per bar - search on keyword "wholesale". Besides the raw materials, you want to factor in the equipment, power, storage, packing, labels, shipping.
 
It is as simple as WetShavey said - Work out the cost per unit of what you buy, times that by the units in the batch. Do this for all ingredients and add it together, along with time taken = total cost per batch. Divide total batch costs by the number of bars in a batch = cost per bar.
 
Okay. I'll break it down using imaginary numbers for me:

Let's pretend I make a 2 lb. batch as follows--
2% Beeswax
3% Sunflower Oil
5% Castor Oil
30% Lard
30% Coconut Oil (76 degree)
30% Cottonseed Oil
6% SF, FO @ 0.5oz/pp.

Running this through SoapCalc, I find that this recipe requires these weights/amounts-- 21 ounces of oils PLUS water, lye, and FO to equal a tad over 2 lbs. / 32 ounces:

0.42 oz Beeswax
0.63 oz Sunflower Oil
1.05 oz Castor Oil
6.3 oz Lard
6.3 oz Coconut Oil
6.3 oz Cottonseed Oil
0.656 oz FO
2.973 oz Lye
7.98 oz Water

If I buy these ingredients from these suppliers in these sizes, here are the costs, NOT INCLUDING SHIPPING, or driving-to-the-store gas/petrol costs.

WSP sells beeswax: 1 lb./16 oz. @ $7.95.
Texas Natural Supply sells sunflower oil: 7 lb./112 oz. @ $34.72
WSP sells castor oil: 7 lb./112 oz. @ $29.95
TNS sells lard: 7 lb./112 oz. @ $23.10
TNS sells CO: 7 lb./112 oz. @ $25.20
TNS sells Cottonseed oil: 7 lb./112 oz. @ $20.93
WSP sells (for instance) "Acai Berries & Satin" FO: 1 lb./16 oz. @ $25.95
My grocery sells Red Devil Lye: 1 lb./16 oz @ $5.59
My grocery sells generic distilled water (necessary due to my very hard well water): 1 Gallon / 128 oz. @ $2.29

So, for a 2 lb. batch, I pay:

0.42 oz Beeswax x {$7.95 / 16} = 0.42 x $0.50 = $0.21
0.63 oz Sunflower x {$34.72 / 112} = 0.63 x $0.31
1.05 oz Castor x {$29.95 / 112} = 1.05 x 0.27 = $0.28
6.3 oz Lard x {$23.10 / 112} = 6.3 x $0.21 = $1.30
6.3 oz CO x {$25.50 / 112} = 6.3 x $0.23 = $1.43
6.3 oz Cottonseed x {$20.93 / 112} = 6.3 x $0.19 = $1.18
0.656 oz FO x {$25.95 / 16} = 0.656 x $1.62
2.973 oz Lye x {$5.59 / 16} = 2.973 x $0.35
7.98 oz Water x {$2.29 / 128} = 7.98 x $0.02 = $0.14
TOTAL = $ 6.82 for a 2 lb. loaf. If I cut the loaf into 6 bars, = $1.14 PER BAR COST, NOT INCLUDING wrap, labels, or labor. This does not figure in molds, tools, electricity, bowls, apron, goggles, etc.

If I assume $0 for wrap, labels, or labor, (to keep it simple for now) that means I will WHOLESALE the bars (sell "cheaply" to someone to put in THEIR shop and re-sell) for AT LEAST $ 2.28 PER BAR. If I'm going to RETAIL sell it myself (craft fair, etc., direct to customer) I'll charge AT LEAST $ 4.56 PER BAR. That's double cost = wholesale, double wholesale = retail. Some folks to triples, or more.

BTW, I did NOT break it down because I think you are too stoopid to figure this out on your own. *I* was. :p (Liberal Arts Major! You want fries with that?) DH had to explain it to me very carefully. Twice. With a diagram AND a spreadsheet. I'll warn you that this kind of thing, like the candlemaking, beekeeping/honey sales, and custom quilting that *I* do, quickly becomes a problem when you add fair labor. If you pay yourself $10/hr., unless your sales are great, you can price yourself out of the market. People often won't pay what something is actually worth. I aim to make up in volume what I lose in labor. And to increase profit margins as I go.

All the little details add up. Labels, wrap, tape, boxes, etc. Cost them ALL in. If one shrink wrap only costs you $0.01, fine. A package of 1000 will cost you $10 + S & H, and tax. How about a heat gun to go with that?

FOs will be your biggest expense. Figure out your best suppliers and buy in as big of batches as you can reasonably handle. Have a *written* plan for how and when to supply soaps, when/how to be paid, and what to do with soaps that don't sell, get broken, etc.

You have a lot of this info hanging around, you just haven't had to pull it together yet. Once you do, you'll be surprised.

Good Luck!
~HoneyLady~
 
honey Lady, that is EXACTLY what I wanted/needed to know! THANK YOU! I tried to ask my sons father, but he didnt have the patience to break it down for me like this, the way i needed it. thank you.

And sea wolfe, how do you know I havent been making soaps for years and only just now NEED this info?? how do you know Im not really bad at/intimidated by math so much so that i have been HUGELY underselling it. how do you know i havent GIVEN away and TRADED POUNDS before I got this deal?!...you dont. your just being judgmental and not very kind. Ive seen alot of that here on this forum and thats why I dont come here a ton, but honey Lady, I am SO SO grateful you opened this thread! if you want to, you can pm me and ill send ya some of my next batch to see what ya think! Thank you again!
 
And sea wolfe, how do you know I havent been making soaps for years and only just now NEED this info?? how do you know Im not really bad at/intimidated by math so much so that i have been HUGELY underselling it. how do you know i havent GIVEN away and TRADED POUNDS before I got this deal?!...you dont. your just being judgmental and not very kind. Ive seen alot of that here on this forum and thats why I dont come here a ton.

I don't think that is being judgmental, just stating the obvious. Anyone who is an experienced soap maker and who uses a lye calculator knows that oil does not make up the whole weight of the batch. You have to add in the liquid, lye and other ingredients. If you are just starting out, you need a lot more experience in perfecting a recipe before selling it. I don't say this to be mean or judgmental, it is for your own good. Most of us thought our first soaps were wonderful; but I can look back at the soap I made in my first year of soap making and see the obvious, they weren't that great.
 
And sea wolfe, how do you know I havent been making soaps for years and only just now NEED this info?? how do you know Im not really bad at/intimidated by math so much so that i have been HUGELY underselling it. how do you know i havent GIVEN away and TRADED POUNDS before I got this deal?!...you dont. your just being judgmental and not very kind. Ive seen alot of that here on this forum and thats why I dont come here a ton, but honey Lady, I am SO SO grateful you opened this thread! if you want to, you can pm me and ill send ya some of my next batch to see what ya think! Thank you again!

Asking if the weight of the oils equaled the weight of a bar of soap was like a baker asking if the weight of the flour equaled the weight of a cake, it just didn't compute. I honestly thought that statement meant that you had not spent much time using soap calculators.

And your first post two months ago spoke of you looking forward to your first batch, so no assumptions really.

I'm sorry if you think I'm being cruel and judgmental, I am probably projecting my own fears of legal liability on people who sell soap too early and actually hurt someone.
 
And sea wolfe, how do you know I havent been making soaps for years and only just now NEED this info?? how do you know Im not really bad at/intimidated by math so much so that i have been HUGELY underselling it. how do you know i havent GIVEN away and TRADED POUNDS before I got this deal?!...you dont. your just being judgmental and not very kind. Ive seen alot of that here on this forum and thats why I dont come here a ton, but honey Lady, I am SO SO grateful you opened this thread! if you want to, you can pm me and ill send ya some of my next batch to see what ya think! Thank you again!

I would have ignored your post since it was already addressed by lsg and Seawolfe except you chose to ignore my post on May 26 when you posted this comment.

Well, we made the soap. Loved it. Cant wait to make more. just did a soap calculator recipe, no idea what happened with the first batch, but I'm going to guess not enough lye though, considering how much i used for this batch. I split it up. The part I put oat milk in to seized up (i added cool milk to hot soap, DUH!) , but I got it in the mold fast, the other I added my coconut lavender oil (i make it , coconut oil in the sun with lavender buds) these two layers made the lavender oat milk bars, the others are a patchouli coffee soap that turned out AMAZING! I had a BLAST with this! They are still really soft, and I'm hoping cure out soon as I am moving and a bit tired of hauling them around. I thought I'd have em sold by now, but they weren't ready in time for the festival I made them for. Lovin it! Thank you!

I saw Seawolfe already commented about you mentioning you were looking forward to making your first batch when you joined in May. Not only that, but you also posted when you made your first and second batches. Even without these posts, anyone could have been able to tell you hadn't been making soap for years because of the question you asked. An experienced soapmaker wouldn't have asked it because she would already know the answer.

Many of the soapmakers here have given away and traded pounds of soap to perfect their recipes before even thinking about selling. I could go on and on with the usual replies I write when I see someone selling after only making a batch or two. But I'm not going to because I don't want to waste my time.

I'm sorry you think we're judgmental and not kind on this forum. Fortunately, there are many other soap forums on the internet which you can join and find congenial members willing to answer your questions.
 
No problem, Alice! Glad I could help!

When I first made soap, my batches kept being "too big", much to my puzzlement. I misunderstood SoapCalc: I thought when it asked for "Weight of Oils" that the calculator "knew" that was what I wanted my finished batch to weigh. Then I realized that the saponification, which I had vaguely in my mind as "2 oz of lye eats 2 oz of fat and it turns into the right amount soap" is not a zero sum equation. Yes, lye and fat change into soap at saponification, but the water does not all evaporate. In the example I used, 21 ounces of OILS made 32.56 or so ounces of soap. I found SoapCalc very confusing for a while until I got the hang of it. Now that I understand what it's asking me for, I can use it appropriately.

Many years of struggling with numbers and some classes in education and psychology of *how* we learn and think have helped me understand that those who think linearly and logically can see cause and effect far more clearly than the types like me who think in pictures and make intuitive leaps. I'm not stupid, but I *do* have dyscalculia and I don't think in ways conducive to the ways most math is *taught*. I just do it differently.

There are indeed some great spreadsheets out there that are very helpful. However, if you are like me, not understanding *how* the calculator got from point A to point B, and what it is asking you for and trying to accomplish, make it very confusing, and much more likely mistakes will be made.

I can be confused all by myself, TYVM, I don't need the computer's help! :crazy:

Fortunately, DH knows very well about my problems with math, and my dyscalculia (like dyslexia, but with numbers) and knows how to beat it into me. He broke it down for me and drew me some pictures, so I can whip it up in a flash. (Where was he all those years in math classes I failed?! :razz: )

Since DH worked in manufacturing and sales all his life, he has a *SOLID* grasp of costing, and pricing systems. I did not understand the difference between costs and overhead. We sell bottled honey from our bees. I understood that yes, I would have to figure the cost of bottle and cap into my price. But I thought labels were part of overhead. Nope, they are a cost to bring the final product to market. I can figure the cost of materials for a bar of soap, but I can't forget the label, sheets of decorative paper, and raffia ribbon used, too. They cost me and have to be paid for -- by the customer, not the profit margin.

For some people, this is all very obvious. But not all of us. *I* have trouble understanding why people can't spell, or use language correctly -- I understand it intuitively. It's like breathing, I don't even think about it. :confused:
But, the other side of the coin is, I'm the kid who *knew* I had 10 fingers, but was struggling with thinking I had 11 after a kid played a trick on me, and I couldn't figure it out. :shock: So I don't judge.

Good Luck, Alice!
~HoneyLady~
 
HoneyLady,

This is a great article and I have copied and pasted for me to use. Thank you!! NOW.....I am sooo math challenged. I have a couple of questions.

For example: How to calculate your

1.05 oz Castor x {$29.95 / 112} = 1.05 x 0.27 = $0.28

Where did the "0.27" number come from?? Did you divide the $29.95 into 112??? Did you multiply the 1.05 with some number??


Kathie
 
Soaping 101 has a ready made spread sheet that does the calculations for you..... I'll look for the link later.

Hi. I went on the Soaping 101 site and could not find the calculator spreadsheet. :(

Well, the ingredients cost is really simple to calculate. Just take the total cost of the ingredients with shipping, divide it up per gram/ounce, then multiply that amount by the amount you use. A spreadsheet is helpful.

If you're referring to your time, well, you don't really get to dictate that so much since you basically get whatever people are willing to pay you for your soap. Your cut is then the profit. You can't really add it in.

WetShave,

I have the total cost of ingredients. Am I totaling all the oz's of all the ingredients here? "Divide it up per oz"? Am I totaling ALL the oz of ALL the ingredients here? Then divide by the total cost if ingredients?

Example: $102.46 for total ingredients.

(60.8 oz total with water and lye)

Where does the division of per oz come in??

Sorry......math challenged here. :(
 
HoneyLady,

This is a great article and I have copied and pasted for me to use. Thank you!! NOW.....I am sooo math challenged. I have a couple of questions.

For example: How to calculate your

1.05 oz Castor x {$29.95 / 112} = 1.05 x 0.27 = $0.28

Where did the "0.27" number come from?? Did you divide the $29.95 into 112??? Did you multiply the 1.05 with some number??


Kathie

29.95 divided by 112 = 0.27
 
WetShave,

I have the total cost of ingredients. Am I totaling all the oz's of all the ingredients here? "Divide it up per oz"? Am I totaling ALL the oz of ALL the ingredients here? Then divide by the total cost if ingredients?

Example: $102.46 for total ingredients.

(60.8 oz total with water and lye)

Where does the division of per oz come in??

Sorry......math challenged here. :(

You have to divide each item so for example if you buy 36oz of CO for 6.00 then it cost you approx .167 per ounce. If you bought olive oil for 10.00 for 56 ounces is would be .178 approx per ounce.

Now if you used 30 ounces of OO and 10 ounces of CO, you would take the olive oil .178 X 30(ounces) = 5.34 and the CO .167X 10 (ounces) = 1.67 and add them together 5.34(cost of olive oil used) + 1.67(cost of coconut oil used) = 7.01 (The total amount for the cost of the oil)
 
WetShave,

I have the total cost of ingredients. Am I totaling all the oz's of all the ingredients here? "Divide it up per oz"? Am I totaling ALL the oz of ALL the ingredients here? Then divide by the total cost if ingredients?

Example: $102.46 for total ingredients.

(60.8 oz total with water and lye)

Where does the division of per oz come in??

Sorry......math challenged here. :(

I would do it so that I figured out the cost per ounce of each ingredient separately. Then each recipe would be calculated using the cost of each ingredient oz times the number of oz of that ingredient in the recipe

So....if olive oil was $0.20 per oz and I used 10 oz, the cost of the olive oil for that recipe would be $0.20 x 10 = $2.00

I would calculate each ingredient, add up the total costs of all of them, and then divide by the finished oz of soap for a cost per oz of soap, or by the number of bars in a batch for a cost per bar.

Spreadsheets do make it easier because they do the arithmetic behind the scenes and you just plug in the numbers, but it really helps to know what the numbers are, and understand it a bit so you know if the results you are getting are really wacky (if you plug something in incorrectly)
 

Latest posts

Back
Top