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.
(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~
