# How do you calculate your cost per bar?



## AlicesWonderhands

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? 

I cant seem to find that answer anywhere else either.


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## wetshavingproducts

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.


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## leapinglizards

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


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## Seawolfe

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.


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## The Efficacious Gentleman

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.


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## shunt2011

I have all my supplies figured out by cost per ounce and then by batch then by bar.  Don't forget to add in labels, packaging and your time.


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## HoneyLady

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~


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## AlicesWonderhands

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!


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## lsg

AlicesWonderhands said:


> 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.


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## The Efficacious Gentleman

I have to ask, how did you get a buyer with out giving them a price?

ETA, genuine question, not wanting to be sarcastic - I am interested in how the discussion went in general


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## Seawolfe

AlicesWonderhands said:


> 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.


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## Hazel

AlicesWonderhands said:


> 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.



AlicesWonderhands said:


> _*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.


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## HoneyLady

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. 
 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~


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## kmarvel

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


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## kmarvel

leapinglizards said:


> 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. 



wetshavingproducts said:


> 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.


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## leapinglizards

Found the link to the spread sheets.... It was on one of her videos:

http://ziggurat.org/soap/calculators/


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## CanaDawn

kmarvel said:


> 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


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## Dorymae

kmarvel said:


> 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)


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## CanaDawn

kmarvel said:


> 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)


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## kmarvel

leapinglizards said:


> Found the link to the spread sheets.... It was on one of her videos:
> 
> http://ziggurat.org/soap/calculators/



Thank you!!


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## HoneyLady

Sorry, Kathie!  I did not see your question to me until today.  Glad I could help!

 Cana answered your question, but I'll do it, too.

_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??_

 The amount of Castor need for my recipe according to Soap Calc is *1.05* oz.

 I can buy it from a supplier for *$29.95* for *112* oz.  So, the supplier charges me *$ 0.27* per ounce for that product.

 I need *1.05* oz @ *$0.27* per ounce.  That costs me *$0.28*.

 I divided the numbers in the brackets first : {$29.95 / 112}  The slash symbol means divide.  (No, I don't think you're stupid.  *I* did not understand that once upon a time.  So just in case you had my math teacher, too . . .)

 The answer to that (0.27) multiplied by my amount (1.05) gave me my final cost of castor oil for this recipe = *$0.28*.

 Then I figured the cost per 2 pound batch, which I then cut into 6 bars.  That gave me a cost per bar, from which I can decide how much to charge per bar wholesale or retail.

 Yes, there are other ways to figure it.  This is what I used for the example.  Spreadsheets are great tools -- *if you understand how they work.*  As Cana very correctly pointed out, you have to be able to recognize if the answers it gives you are reasonable or not.  That particular point is a real problem for me -- my learning issues make it extremely difficult to recognize those patterns, and if something is wonky.

 Good questions!  Great answers!  As math challenged as I am, I am amused and very happy that all my hard work to learn this stuff for myself can help me explain it to someone else.  

 And for the record:
*I genuinely do not believe that we math phobic people are stupid.  I really think we learn in different ways than others, and many teachers do not know how to teach it in ways we need, to understand it.*  Fortunately, this is getting better as time passes.

 PLEASE ask if you have more questions!  We are all here to learn from one another.  I have sticky notes from a half dozen members of the forum in my binder.  I expect that will increase!:razz:

 ~HoneyLady~


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## kmarvel

Thanks Honeylady. I am really trying to master the math here. I soooo suck at it! haha

 I like to think of myself as "math challenged".  haha
Kathie


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## robosqu1d

You are all making me feel very grateful that we use a decimal system for weights in Europe - grams and kilos are definitely easier than pounds and ounces.


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## The Efficacious Gentleman

Metric certainly does make it easier.  But I think even with the imperial entanglements, people make it harder than it needs to be:

Take an ingredient.  Any ingredient - this is not dependant on a specific recipe yet, but should be done for all ingredients used in soap that sells.  Work out the cost per unit (should be the same unit that you make your soap in) by *taking total cost divided by total units.*  That gives us *cost per unit*.

Do this for all ingredients.  Put it in a spreadsheet or on paper or what ever feels best for you - spreadsheet is better as it does the math for you.

Then take one recipe and look at how much of each ingredient you used.  *Multiply your cost per unit by the number of units used*.  Do this for all ingredients in the recipe.  Add this together and you have *total ingredient cost per batch*.  Divide this by *number of bars* and you have *cost per bar*.  

Of course, you need to factor in your time as an "ingredient" too - how much does your time cost per unit, how many units of time does it take per batch?  Just the same as any other ingredient.

While I understand many people are math challanged, it is not a complicated system when you break it down in the smaller parts - work out cost per unit.  Stop, period, have a cup of tea.  THEN worry about batch cost and bar costs.  Makes it much easier to swallow than thinking "I have 14.5 Oz of olive oil in this batch and a 60 oz tub of oil costs........................................." then you'll just get in a funk.


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## kmarvel

HoneyLady,  I think I have it now.  Can you check my work??  (Feel like a Math teacher yet??  lol)

 My 3lb batch I use 1.7 oz of castor oil.  1.7 x  {$5.95 / 16}  =  .37   1.7 x .37 = .39    I cut into 1" bars = 13 bars of soap.

 So I use this calculation for all of my ingredients and then total up the numbers and that is the total cost of one batch of soap.  If I cut 13 bars, would I divide the total number into 13??

 Kathie


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## The Efficacious Gentleman

Kathie, please work out the cost per unit for the oil first - then put it in to the calculation for the batch.  Doing both together is messier than it needs to be.

"My castor costs $0.37 per oz ($5.95 / 16).

I use 1.7 oz Castor per batch = 0.37 * 1.7 = 0.63 ($0.63).  Each batch gives me 13 bars = 0.63 / 13 = 0.05 ($0.05) cost of castor per bar."


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## kmarvel

Oh my gosh. I think I have it all figured out!!! For a 3 lb batch cut 13 bars. $0.74 per bar. $0.64 per bar cutting 15 bars!
I am selling retail.

HoneyLady, you are a Math uber awesome wizard!!!! :grin: Thank you sooo much!!!!



The Efficacious Gentleman said:


> Kathie, please work out the cost per unit for the oil first - then put it in to the calculation for the batch. Doing both together is messier than it needs to be.
> 
> "My castor costs $0.37 per oz ($5.95 / 16).
> 
> I use 1.7 oz Castor per batch = 0.37 * 1.7 = 0.63 ($0.63). Each batch gives me 13 bars = 0.63 / 13 = 0.05 ($0.05) cost of castor per bar."



I will definitely break it down for each ingredient. thank you!!


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## HoneyLady

Kathie and kmarvel, I think you are on the right track.  But I think you may have swooped over a step for a moment.

 The EG did a good job of putting into words what I was actually trying to do with numbers the first time around.  If those words don't work for you -- "cost per unit" -- keep playing with this until you find a system you can understand.  If no one else understands it, that is fine. If it works for YOU, and you are more accurate with it, it's good.
 -----------------------------------------------------
_My 3lb batch I use 1.7 oz of castor oil. 1.7 x {$5.95 / 16} = .37 1.7 x .37 = .39 I cut into 1" bars = 13 bars of soap.

So I use this calculation for all of my ingredients and then total up the numbers and that is the total cost of one batch of soap. If I cut 13 bars, would I divide the total number into 13??_
_-----------------------------------------------------_
 1.7 ounces of Castor Oil needed for this 3 lb. (#) batch.
 Supplier sells it in 16 oz bottles for $5.95.
 Therefore, your COST of Castor Oil will be $5.95/16 because there are 16 ounces in a pound.
      $5.95/16 = $0.0371875, or thirty-eight cents ( $0.38 ) per OUNCE.
 But you need more than one ounce, you need 1.7 ounces.  So, 1.7 (ounces) X (times, or *) $0.38 = $0.63 cents for castor oil in a 3 # batch.
 -----------------------------------------------------------------------------
 Yes, you use this method for costing (figuring the cost) of all your other supplies for the batch -- say, 5 ounces of CO, 4 ounces of OO, 1 ounce of lye, and 1ounce of FO.
 For simplicity's sake, I'll pretend it's $1.00 per ounce for the CO; $1.00 po for the OO, $0.50 po for the lye, and $2.00 po for the FO.  Those are arbitrary numbers I pulled out of the air.

 So, for this three pound batch, it costs me to make/I pay :
 5 ounces of CO = $5.00 (5 ounces at $1 per ounce)
 4 ounces of OO =$4.00 (4 ounces at $1 per ounce)
*1.7 ounces of Castor Oil = $0.62 (1.7 ounces at $0.38 per ounce)*
 1 ounce of lye = $0.50 (1 ounce at $0.50 per ounce)
 1 ounce of FO = $2.00 (1 ounce at $2.00 per ounce)
 Total cost of ingredients for this imaginary batch = $5 + $4 + $0.62 +$0.50 + $2.  This adds up to : *$12.12.  *Cost of ingredients per 3# batch.
*-----------------------------------------------------------------*
 If you cut that batch into 13 bars, you *divide the cost by the number of bars.*  That is, $12.12 divided by 13, or 12.12/13.  That calculation gives us : 0.093230769 . . . OR, *$0.93 cents per bar cost.*
 If you do it the way you phrased it, "divide the total number _into_ thirteen", you get this : 13 divided by 12.12, OR 13/12.12.  That = *$1.07 cost per bar.*
*-----------------------------------------------------------------*
 EG is right, it is much easier to take this one step at a time.  When I laid it out for Alice, I sort of combined it for brevity, but if it confuses you, by all means don't do it that way.  Figure out your cost per ounce / gram / pound from the supplier, then figure your cost based on recipe.  Total the cost of ingredients.  If you can figure packaging costs, (a shrink wrap band @ $0.10 each, and a label @ $0.05 each, for instance) would add $0.15 cost to each bar.  Any packaging you do costs you, and should be included in your cost/price calculations.  But don't attempt it until you understand the process.  If you can't, just work with ingredients for now.

 You are right with your figures -- then, as a very broad and general rule of thumb, your bare minimum price is *at least your cost*, or you are losing money.  From there, it's more or less 2 x Cost = Wholesale Price, 2 x Wholesale (same as 4 x Cost)= Retail.

 I am very cautious about the spread sheets.  You need a clear understanding of how to input your formula into the sheet, and how it's going to operate.  This confuses me, so I do it with a ledger.  I will move it to a spreadsheet eventually, I just haven't done it yet.  It's arithmetic may be more accurate, but it's only as good as what I tell it to do.  And if I tell it the wrong thing, it's of no use.  Garbage in, garbage out! 

 K, you pass Costing 101 with an A+ !!  
  Nah, I'm not a math wizard, you are!  I've just had to learn how to break it down in itty bitty steps so *I* could understand it.  Some of these really smart folks like EG, can see and understand the logic without effort.  I need a road map from Point A to Point B. If my map helps, great!

 ~Honey Lady~


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## HoneyLady

Hey, DeeAnna and other Mods!  (DeeAnna is actually the only one I've spoken with :razz: )

 This thread is generating some interest.  I guess I am not the only math challenged individual in the universe.  How about a sticky?  "HOW TO FIGURE COST"  I would be willing to write it all out again, in a simpler version if needed to explain as I've done on this thread.  I'd use even numbers, LOL.

 If you would like me to do this, let me know.  Somebody somewhere has my email addy . . .  If not, okay.  :razz:

 ~HoneyLady~


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## kmarvel

Thanks HoneyLady for the "A+".  haha    Some people are good with numbers and can see them clearly.  I cannot.  Thank goodness for this Forum and the patient people, like you and EG, Dorymae, Seawolfe, Hazel, etc.

Now......it is back to breaking up numbers some more.    

Kathie  (kmarvel)


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## Hazel

HoneyLady said:


> Hey, DeeAnna and other Mods!  (DeeAnna is actually the only one I've spoken with :razz: )



DeeAnna isn't a mod.


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## Jaccart789

I just wanted to chime in and say to take into consideration that maybe you are selling too early. I am a registered nurse and I am studying to be a nurse practitioner specializing in aesthetics and dermatology, and I think soap making is often taken too lightly. I mentioned in an earlier thread that people who have allergies, immunocompromised, can have devastating effects from your mistakes. Lotions and other products laden with bacteria because of improper technique, soaps with ingredients that are not labeled correctly could be the cause of anaphylaxis, or severe dermatitis and or burns from again improper technique or ingredients. All these possibilities should be weighed heavily before selling to the public. I am not downing you as I fully embrace the idea of selling. I just hope you don't make a grave mistake. I have been soaping a year with close to 200 batches, soaping almost daily...my new husband offered to get me a store and to start selling, but I wouldn't dream of it. I have been mixing scents and creating bath products such as lotions since high school, as I worked for one of the oldest scent companies in Georgia, so I had some understanding. However, I decided to go a 3-5 year plan, toying with the idea of a very small craft show (which I decided to not do). I guess I want perfection and I give my stuff away to at least 40 different people on a routine basis who keep pushing me to sell, but I won't until I know everything there is about soap making. For me a year is definitely not enough time as I am still asking basic questions. When I am like Hazel, Seawolf, Seven, Dorymae, Cmzah (I think that is how you spell just to mention a few), and can offer advice and figure out what posters mistakes are in their recipes... the science behind it... then I am ready. Well good luck my friend and I hope you have a phenomenal business just remember the responsibility you have to the public.


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## Hilge

I have to say something, even if I shouldn't :smile: First, I have to say that Jaccart789 is absolutely right about responsibility and safety. But then, sometimes I feel like this whole things is too serious. Of course it is, but my idea of soap making is very traditional and simple. It's something that's been done for ages. Now we have millions of regulations, safety cautions and other tricky things. Soap makers should always be sure about their recipes and label everything correctly but I sure hope that people with allergies or other severe problems are very careful with any product and don't experiment just anything. People sell cupcakes, cocktails, poisonous chemicals (like cleaning products) and plastic toys for children but then old school basic soap is something to worry about? Sometimes when things seem really tricky, I think about those 2000 years old aleppo soaps, basic castile soaps, african black soap (looks like poop!) and try to figure out how this got so complicated. It's just soap (My goosh, did I just say that on this forum?!). And PS. I don't sell.


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## Jaccart789

Clearly good points Hilge. I am accused of being too serious all the time.  This is my opinion and it could be because I have a license, and when you are a nurse, you are held to a higher standard according to the law, so probably I carry that over with everything I do and this includes soaping.  I am also a perfectionist to a fault, so I can't understand the rush to sell. I wish everyone success at any and all business endeavors. 

I don't want to hijack this post and change the subject more than it has... Good luck to OP and landing the new clients!


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## DeeAnna

Hey, Honey Lady, I'm not a mod. I regret if I've said anything that gave you that impression. I can't do anything about making this a "sticky", but I think you're doing a good job of 'splainin things -- keep up the good work!


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