# What Profit Margin?



## donniej (Aug 18, 2009)

With production under way, I'm now working on a price sheet.  I know the cost of materials and how much time it takes to make a batch.  I know what others sell soap for and I know what the retailers sell for.... but I'm shooting for large quantity with smaller profit margins.  I've always thought it was a good idea to have a price sheet with small quantities at high profit but over 50 or 100 bars, the price gets very, very low.

The fear of course is that I'll price myself too low.  So how do you know where to price your product?  

Thanks!


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## AshleyR (Aug 18, 2009)

Hi Donnie!

Have you ever checked out thesoapguy.com? I've seen him on youtube and he seems to sell a lot of wholesale soap at a really low price. Maybe you could get some pricing ideas from him?


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## Tabitha (Aug 22, 2009)

The US standard, for a variety of handmade items, is cost X4 for retail. 

For perishables (like food or flaral arrangements) it is cost x5 to cover your waste. 

Your cost includes supplies, overhead & time.


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