Prices

[Cat&Oak]

$10 a bar! Must be a lot better soap than what I make! Someday...

When I had my business after figuring out ALL of my expenses I was charging $9 to $9.50 for a 4.5 ounce bar. Nevada is an expensive place to live. Friends and family had no issues with that price. Grats on your party glad it went well.
You could probably sell on Etsy there are a bazillion hobby soapers who only price to cover the cost of supplies there.

 

[glendam]

That's a bargain for such a big bar of soap. ❤

I know I always put Kenna's stuff on here but I think she is really smart! This is a super article and I hope it helps you. Really you can charge whatever you want John.

Know the True Cost of Your Handmade Soap

Guess what? It doesn’t matter what other soapmakers think about your pricing. So, it's up to you to do the work of correctly pricing your soap so that your business is set up for profitability.

www.modernsoapmaking.com

I agree that she is very smart and has had a successful soap business, which she sold and it is still going. I remember watching a video of hers where she had sum it up (at that time, a couple years ago) to the minimum price being $1.50 per oz., for a plain bar (no color, no design. basic oils), and increasing from that point based on the extra time and materials.

 

[John Harris]

I mean, he could have also not made so much soap and not spent the money on ingredients and the stand at the fair and saved the 380 to start with! But then I am one of those who think that if you're making too much soap to be able to use or reasonably give away, you can just make less soap instead of selling off soaps that you didn't make to sell

Too much soap! What a concept! It's fun being surrounded by this much soap!

I have been through many hobbies in my life and they all end up being the same way - I jump in with both feet and end up with much more product than I could possibly use. Take my beer making phase, for instance. I used to make 5 gallons, two times a week. I was swimming in beer. I own 60 watches and 100 tobacco pipes. Shelves and shelves of Archie comics. I could go on...

 

[Cat&Oak]

Too much soap! What a concept! It's fun being surrounded by this much soap!

I have been through many hobbies in my life and they all end up being the same way - I jump in with both feet and end up with much more product than I could possibly use. Take my beer making phase, for instance. I used to make 5 gallons, two times a week. I was swimming in beer. I own 60 watches and 100 tobacco pipes. Shelves and shelves of Archie comics. I could go on...

Nothing wrong with that friend you just have a lot of passion for what you do!

 

[John Harris]

Nothing wrong with that friend you just have a lot of passion for what you do!

Passion ... or Bipolar Affective Disorder

 

[Cat&Oak]

Passion ... or Bipolar Affective Disorder

Your not alone! I have to take meds twice a day every day for severe depression and anxiety

 

[John Harris]

Your not alone! I have to take meds twice a day every day for severe depression and anxiety

Wanna get married? LOL

 

[Cat&Oak]

Wanna get married? LOL

Well sorry John I've been married for 33 years now. My husband is a Saint

 

[Kiti Williams]

Glad it went well. It cleared out your stash so you can make more soap, and now you have money for supplies. Win, Win! There was a small Christmas market in my small town this weekend. 3 vendors selling soap- 2 vendors selling soap for $10 a bar and 1 for $8.50 a bar

Wow! I sold mine for $7.00 per bar for the fancy ones and $5.00 per plain old blocks. I do sell "tastes" of my soap. when I have extra from what the mold will hold, I pour the excess into candy molds, those went for $1.00.

 

[TheGecko]

When it comes to pricing your soaps, there are three things to consider...actual costs, profit margin and market.

Actual Costs - When calculating your costs, there is first the costs of your actual ingredients to make the soap...base oils, lye/water and additives...and these costs should include your shipping costs. As an example, I purchased a 4 oz bottle of XXXXX for $9.90, but my actual cost is $12.66 when you portion the cost of shipping. You need to also add in the cost of your packaging...for me that is a box and label. Then there is the cost of my labor...from making the soap to packaging the soap for sale...this should be at least minimum wage for your area times 25%. Then you have 'overhead'...this includes 'rent', utilities like electric, water/sewer, garbage, advertising, telephone, website, etc. When I calculate all the above, a bar of soap costs me around $3.00 each.

Profit Margin - Depending on your sales, this can be anywhere from 20% to 50%. Remember, this is money in the bank (that you pay taxes on). I try to keep it around 30%.

Market - This is what folks are willing to pay for your soap. I my neck of the woods...that's $6.00.

A note about Special Orders; you want to be careful about this so you don't end up with a bunch of soap you can't sell. I have a few special orders and I treat them the same as a Wholesale Order. Minimum is a 10-bar loaf; fully cured, cut and then wrapped (tissue paper if local, bubble wrap if shipped). You get a wholesale price if it's a soap I carry in stock, but it's full retail if it is something I have to order. Example...my BIL orders a loaf of Chocolate Expresso...it's something I carry in stock and he just wants it cut and stuff in any box so I charge him $40. On the other hand, one of my crafting friends wanted a specific fragrance...two loaves, one loaf packaged for gifts; I charged her full retail for both since lack of package for one loaf was offset by the shipping costs of the fragrance.

 

[John Harris]

When it comes to pricing your soaps, there are three things to consider...actual costs, profit margin and market.

Actual Costs - When calculating your costs, there is first the costs of your actual ingredients to make the soap...base oils, lye/water and additives...and these costs should include your shipping costs. As an example, I purchased a 4 oz bottle of XXXXX for $9.90, but my actual cost is $12.66 when you portion the cost of shipping. You need to also add in the cost of your packaging...for me that is a box and label. Then there is the cost of my labor...from making the soap to packaging the soap for sale...this should be at least minimum wage for your area times 25%. Then you have 'overhead'...this includes 'rent', utilities like electric, water/sewer, garbage, advertising, telephone, website, etc. When I calculate all the above, a bar of soap costs me around $3.00 each.

Profit Margin - Depending on your sales, this can be anywhere from 20% to 50%. Remember, this is money in the bank (that you pay taxes on). I try to keep it around 30%.

Market - This is what folks are willing to pay for your soap. I my neck of the woods...that's $6.00.

A note about Special Orders; you want to be careful about this so you don't end up with a bunch of soap you can't sell. I have a few special orders and I treat them the same as a Wholesale Order. Minimum is a 10-bar loaf; fully cured, cut and then wrapped (tissue paper if local, bubble wrap if shipped). You get a wholesale price if it's a soap I carry in stock, but it's full retail if it is something I have to order. Example...my BIL orders a loaf of Chocolate Expresso...it's something I carry in stock and he just wants it cut and stuff in any box so I charge him $40. On the other hand, one of my crafting friends wanted a specific fragrance...two loaves, one loaf packaged for gifts; I charged her full retail for both since lack of package for one loaf was offset by the shipping costs of the fragrance.

Wow! Thanks, Gecko! I never planned to get into sales, but I kind of got conscripted into it. I really need to sit down and figure it out.

 

[Ugeauxgirl]

Well sorry John I've been married for 33 years now. My husband is a Saint

Mine too!

 

[maryloucb]

I just created a spreadsheet so I know exactly how much each bar of soap costs me to make. I would say at the very minimum, you should be doubling your costs, and if you actually want to make more than just what covers your costs, double that again for retail. I just started selling, and I priced my bars a little less than what another established soapmaker with her own brick and mortar store sells for. I also do a deal for friends/family. It's more than 4x my costs, but not a lot more. I live in a small touristy resort town, so I can charge a little more.

 

[CreativeWeirdo]

I have been through many hobbies in my life and they all end up being the same way - I jump in with both feet and end up with much more product than I could possibly use.

Nothing wrong with that friend you just have a lot of passion for what you do!

Peeps! I know what you mean! Living with C-PTSD, my hobbies are my only friends.

 

[TheGecko]

Wow! Thanks, Gecko! I never planned to get into sales, but I kind of got conscripted into it. I really need to sit down and figure it out.

I recommend SoapMaker3...it's a one time fee for the professional edition. I happily paid for it when, putting a new order away, discovered I had multiple bottles of the same FO. Enter your recipes and your purchases and it will tell you how much your soap costs based on current inventory.

I haven't used it as much as I should, but that is going to change this next year.

 

[The Efficacious Gentleman]

Too much soap! What a concept! It's fun being surrounded by this much soap!

I have been through many hobbies in my life and they all end up being the same way - I jump in with both feet and end up with much more product than I could possibly use. Take my beer making phase, for instance. I used to make 5 gallons, two times a week. I was swimming in beer. I own 60 watches and 100 tobacco pipes. Shelves and shelves of Archie comics. I could go on...

I can understand that - I've recently gotten in to brewing mead (with a natural yeast that I cultured) and there are things like leatherwork which I dabble in as part of bushcraft - but even in those I tend to make what I need, even though I really enjoy the processes involved.

I think it's partly my Scottish heritage, I can't be wasteful and so want to see that the soap/mead is good or bad before making another batch!

(And my darling wife has limited me to 5 pipes, and no more than 7 straight razors.......)

 

[MelissaG]

My bars are around 5 ounces and I charge $7 a bar, $5 for clearance soaps. Although I'm getting tired of those clearance ones not selling so I might just donate them. I think you're charging too low. It should be cost times three. I really don't like a times four scenario because I find it greedy but that's my personal feeling on it. I don't need to be rich, I just want to be comfortable and not have to work for someone else again.

 

[Cat&Oak]

My bars are around 5 ounces and I charge $7 a bar, $5 for clearance soaps. Although I'm getting tired of those clearance ones not selling so I might just donate them. I think you're charging too low. It should be cost times three. I really don't like a times four scenario because I find it greedy but that's my personal feeling on it. I don't need to be rich, I just want to be comfortable and not have to work for someone else again.

It's not greedy to price higher. The major soapmakers that actually make a living off soap charge $11-15 a bar. If selling soap is actually your only income $7 a bar is not even close to providing you a livable income.

 

[ResolvableOwl]

(And my darling wife has limited me to 5 pipes, and no more than 7 straight razors.......)

(What an admirable lady! )

 

[The Efficacious Gentleman]

It's not greedy to price higher. The major soapmakers that actually make a living off soap charge $11-15 a bar. If selling soap is actually your only income $7 a bar is not even close to providing you a livable income.

Exactly this!

Not all of the money from the 4*cost as retail should end up in your pocket - you pay yourself a wage from the company. The rest stays in the company for investment in/replacement of equipment and the like. R&D, making smaller test batches of something new. Things of that nature