How long to recover initial investment?

[SpiralTouch]

I haven't been on the forum in quite some time! I ended up getting into a summer market in July and have really enjoyed it. It's the only market I did this year. Financially, I have not yet covered my initial supply investment. I bought a lot of essential and fragrance oils and other things.
I make mostly cold process soap, but also body butters, scrubs, etc.

I am wholesaling to a local health food co-op. They finally got my products on the shelf a week ago.

I am looking forward to being more organized next year and selling at at least 3 or so farmer's markets instead of one.

How long did it take you to recover your initial investment? I spent over $4000 for my start up costs. I've made around $2500 since starting the farmer's market in July. I've spent a lot of time getting my product line down since last winter, so I feel like the hardest part is over.

Thanks for reading!

 

[Second Impression]

I sold my first bar in March and am on track to break even by the end of the year. Not too shabby, I think

Sent from my XT907 using Soap Making mobile app

 

[pamielynn]

Ha! I'll never know - all those years of learning my craft I never kept track of what I was spending. And we shall never reveal those costs to the DH, ever!

 

[SpiralTouch]

I sold my first bar in March and am on track to break even by the end of the year. Not too shabby, I think

Sent from my XT907 using Soap Making mobile app

Can I ask how many markets you sold at and/or wholesaling to stores etc?

I feel like I could have broke even if I did more markets, I just wasn't prepared enough and missed deadlines to apply this year.

 

[SpiralTouch]

Ha! I'll never know - all those years of learning my craft I never kept track of what I was spending. And we shall never reveal those costs to the DH, ever!

I know what you mean.. When I sat down and added the costs I kind of freaked out! Luckily I had saved at least half of those costs from my previous job.. Luckily DH is super supportive

Aaaand thank goodness for no interest credit cards :sad:

 

[Second Impression]

Can I ask how many markets you sold at and/or wholesaling to stores etc?

I feel like I could have broke even if I did more markets, I just wasn't prepared enough and missed deadlines to apply this year.

I did a weekly farmers market from June-October. There were some $30 days in there, it really wasn't much of a market. A small fair in the spring, 2 fairs so far this fall and I have 3 coming up before the end of the year. 2 of those shows are large juried events so my forecast to break even is dependent on doing well at those events. No wholesale or consignment going on, just not ready for that yet. I do an appreciable amount on Etsy (almost entirely direct referrals) as well. My supply purchases started paying for themselves in August and I'm pretty sure I've broken even on startup supplies overall. The big chunks of change left are my tent+tables and insurance. Looking to start on the ball towards wholesale accounts after the new year and actively seeking out those accounts by summer. I do have to keep yelling at myself to not develop any new products unless I already have supplies for them. It's really hard to keep that urge to create new things in check!

Sent from my XT907 using Soap Making mobile app

 

[SpiralTouch]

SecondImpression - thank you! I've been wanting to do fairs and shows, I definitely will look into doing those next year. I always wondered if they were worth the cost, it's nice to hear positive experiences from others

 

[paillo]

I gave myself a 3-year plan to start making a profit. It took all of that. I don't cut any corners, and had a ton of learning to do by trial and error. As I'm sure many of us do, I spent wayyyyy more than I'd planned on initial investment - I still have stuff I bought as a beginner I'm trying to find uses for now. Gave away a ton of soap and B&B products for feedback, which was a great learning experience. Advice: get candid, brutally honest product testers.

It was all worth it, I'm happy to say. Would I venture it again, knowing I'll always have to have a full-time job in addition to my passion for soaping? Yes, for sure. But I'm really glad I wasn't counting on the extra money the first couple of years.