Wholesaling Question

[beachgurl]

Love the Diet Coke comment. [/quote]

 

[Harlow]

When I do M&P it cost well under a dollar to make a bar to make, that is for the base, colorant, scent, exfoliant, package, label & time and I do use the more expensive bases from SFIC.

The average person sells a 4oz bar of M&P for $4.00, following the 4x standard US mark up you can do the backwards math & arrive at the assumption that the average cost to make a 4oz, $4.00 bar of soap is $4.00 divided by 4 = $1.00 per oz.

 

[Black soap n candle lady]

I think I figured it cost me around 2-3$ to make a bar. So what i'm charging seems to be about right. I don't have insurance yet as I cannot afford it just starting out. I will get it as soon as i'm able.

You can't afford NOT to have insurance. Selling without it is financial suicide.

Don't take chances that you don't have to. People these days are just dying for the chance to sue someone. Don't let it be you. Get your business license. Get your insurance. Properly label your products. It is crucial!

 

[jenmarie82]

I don't know how you're making you're making your soap for that cheap if you're using the all natural base.

 

[Black soap n candle lady]

I don't know how you're making you're making your soap for that cheap if you're using the all natural base.

When you purchase in bulk it really brings down the cost. This is a very expensive business/craft/hobby. It would be out of the question for me to do this unless I purchased my oils in bulk. Now that I have found good lye suppliers I will be doing the same.

 

[Deda]

Now that I have found good lye suppliers I will be doing the same.

Yep I FINALLY found a lye supplier locally(an hour and a half away) - $37.10 for 50 lbs. $150 minimum. I haven't bought it yet. But as soon as I need more that's where I'm going.

 

[jenmarie82]

I can't find the natural soap base in bulk that's cheap enough for one person to buy.

 

[Deda]

I can't find the natural soap base in bulk that's cheap enough for one person to buy.

How much are you paying now?

 

[jenmarie82]

It's right around $4/pound! It's expensive but i can't find anything else that's cheaper..that's why i asked. I know you can get it directly from SFIC but there's no way i can pay that much!

 

[Deda]

It's right around $4/pound! It's expensive but i can't find anything else that's cheaper..that's why i asked. I know you can get it directly from SFIC but there's no way i can pay that much!

Ok, go to WSP, they have a natural MP that is much cheaper. Be creative. Go without ice cream, cigarettes, walk to the grocery store for a week, have a yard sale, save pennies. What ever it takes. I'm sure you can come up with $40.

If the financial concerns of starting a business are out of your reach for now then I have a suggestion. With a touch of creativity, some ingenuity and a little belt tightening you can slay most of your dragons.

Here is my 2 year plan for you:

For the next 2 years all gifts that you would normally give to friends and relatives will be handmade soaps, created for them by you.
Made with WSP MP base purchased at $38. That 24 lbs of soap will yield you 96 bars, give or take. Take what ever money you would have spent on gifts and save toward your business. This works both ways, any gift money you receive - well, you know where that goes. It's only 2 years!

You will attempt to save from your budget $10 a week into a high rate savings account, along with the money you saved by giving your soap as gifts. At the end of 2 years you will have well over $1000. More than enough to purchase a nice supply of materials and pay for that all important insurance.

You will practice your craft, be creative and explore the art. At the end of 2 years you will be one of the most accomplished MP artists. Your soaps will reflect all that you've learned, and you will be ready to handle any soap fairies that show up to pee in your molds.

You will continue to come to this forum, ask questions, learn, teach, inspire and be inspired.

You will seek out free seminars on running a business. Learning about websites, advertising and marketing.

At the end of 2 years you will have learned so much, grown so much and will be 100% ready to run your own successful business. And you will have a little cash to at least get started.

OK, Now any questions?

The previous comments are only meant to inspire - they do not represent a foolproof plan for a successful business. No guarantee expressed or implied.
- my disclaimer! sorry, too much coffee.

 

[Black soap n candle lady]

Deda, what a jaw dropping plan! That was a great and generous suggestion. It is obvious that Jen really wants to do this. Her soap business touches my heart because it can bring real money for a stay home mom but I don't want to see her get out there without her insurance and then get in trouble.

 

[jenmarie82]

Thank you for the inspiration. I just wanted this to take off right away..wishful thinking i guess. It's hard to be a stay at home mom and that's why i started making soap again. I wanted something to keep me busy and something I could feel good about. It just saddens me to think of shutting down my website after all the hard work i put into it. But I'm not going to give up. I will just keep making the soap and giving it away as you suggested and getting input. I'll keep track of my recipes and keep trying to obtain supplies when i can and then when i'm ready i'll go for it again.
About the insurance, is there anyone that offers it for cheaper than soapguild?
Oh and I tried some new soap last night...chunky soap and soap with with curls in it. It turned out okay but not very good. I got some soap making books yesterday and tried following their directions but they aren't step by step. The chunkies don't get all the way covered by the clear base. Any tips?

 

[beachgurl]

Jen,

I know that being a stay at home mom is no walk in the park. I've was a Marine and went from doing that to staying home with the kids (God has a good sense of humor .. he gave me .. the Marine a set of twin girls .. and they're about as girly as girls can be :wink: ) ... talk about being in shock ... the monotony is mind numbing at times (which is why I started making soaps, and BB). Get out there like Deda said and hit up small business seminars (I'm going to one next week I believe .. teaches crafters 33 low cost ways to market their products and reach their audience) a lot of them are free! Hit the chamber of commerce, check for local craft guilds, look for mommy and me groups. No business just pops up overnight. Deda put forth a great plan for you .. now you have the tools .. do it

BTW .. there is a place (I have to find it for you) that is cheaper than the Guild; however, their coverage is not as comprehensive and only covers in home businesses (and I hope to have a storefront within the next 4 years). Check around in previous postings and you'll find it ... that's where I found the link. Just keep in mind if you grow beyond 5,000 a year in revenue (that's off the top of my head ... I can't be 100% sure) that you'll have to find different insurance. The Guild offers the most comprehensive and flexible plan for the best price.