# A Guide Through Selling Handmade Soap



## dagmar88 (Aug 1, 2009)

Guide through selling handmade soap

1)	Knowledge

The first step towards making and selling your own handmade soap is knowledge. You must be able to inform your future customers well. They do expect you to be able to answer every question they have, how odd they may seem at some times. Anywhere from ‘Can I eat that’, to ‘Can I use that on my newborn baby’. Also, you can not make the right and safe choices without knowing what you’re doing. Our skin is our biggest organ and needs to be treated with care and respect. 
Not knowing, and therefore providing wrong information will hurt both your clients and your business. 

You’ve done, and continue to do, loads of research. Internet connects people all over the world and makes it easier than ever to share information and to learn. The search function on this forum and search sites such as Google is your best friend! 
Did you think of taking a soaping class or meeting a fellow soaper to soap together and learn from each other?

You know the process of making soap inside out; everything there reasonable is to know about the saponification process or in case of Melt & Pour, how your premade base was produced. Of course that means you are familiar with different soaping processes and the most used terms.

You know what soap is chemically and molecularly. Understanding the working of your soaps gives you a certain insight in your product and helps you answer questions.

You know the different properties, benefits and potential disadvantages of all the oils in both ‘normal’ and saponified state.  Naturally this goes for any other additive you are using in your soap; from herbs, to liquids and coloring. 

You’re acquainted with and know how to balance the soap properties; hardness, cleansing, bubbly/creamy lather and conditioning and are able to come up with your own recipes using a soap calculator such as www.soapcalc.net or by the use of SAP values.

You have developed your own recipe (or multiple recipes) totally adapted to the preferences of you and your future customers. Developing your own recipe will make your product different from what is out there and will be your unique selling point. 

You, your family and friends have tested the soap you have developed thoroughly. They have given you their honest opinions and you’ve perhaps made some additional changes to improve your soap based on their constructive criticism. You have let some pieces of soap lay around in different places over time; and you have watched and reacted on how the soap behaves. 
This is the only way to be able to guarantee your clients your soap is safe to use in general and of high quality.
Even after you launched your business, you cannot just introduce new products without a testing period.

You know everything there is to know about hygiene procedures and how to produce soap with the utmost care for hygiene, both personal and production wise. The quality of your product and customer relations depends on it.

You know about the different skin types and what ingredients are most suitable to use in each case. Also, you have basic knowledge of the most common skin problems such as acne, diaper rash and eczema, and you can advise your future customers what/what not to use. Also, you know when you have to recommend your clients to go see their physician.


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## dagmar88 (Aug 1, 2009)

2)	*Experience and Skill*

_We all learn a lot by doing; you will encounter situations and problems you never realized even existed. Also you need to actually do things to require a certain level of handiness and routine. _

You have made numerous batches of different soaps. You have experienced the differences between your multiple batches and were able to choose the ones you liked most. 

You have done a fair deal of experimenting. Of course it is fun, but it’s also important to find some things out for yourself and be able to base conclusions on the finished product. In the end it will provide you with more insight than just learning of other soaper’s experiences.

You managed to grow as a soap maker by overcoming the problems you encountered during the making of your soaps. You know how to handle common problems.

You have learned to make soap ‘A’ based on recipe ‘A’ and can predict the outcome to the highest extend possible. Do realize that no matter how experienced you are and how much knowledge you have gained, not every batch will turn out as you wanted.

You have learned to make soap ‘A’ based on recipe ‘A’ with a minimum amount of time and energy. Because you know what to do and what works best for you, you have formed a routine.

You have learned to produce with consistency. You can always provide your costumers with the same product and quality time after time. Of course looks vary from batch to batch.

You feel completely comfortable with making soap. After all, we all benefit from doing something that feels good and brings us peace of mind.


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## dagmar88 (Aug 1, 2009)

3)	*Law & Regulations*

_Not following the law will cause serious trouble and you’ll face the realistic possibility of getting sued or fined. Whenever you are selling something with the objective to make profit; you’ll have to register as and meet the standards of a business._

You’re familiar with and able to meet the needs of the law and regulations of your country/state. 
If you want to claim your soap does anything beyond cleaning; you have to meet FDA regulations.
When you’re based in Europe, you need to have each of your products officially safety assessed.

You’ll take every precaution regarding your safety, that of your products and that of the lives surrounding you; may it be your employees, husband, children or pets. We are working with potentially dangerous substances that cannot be handled recklessly. 

You properly label and package your products, by indentifying the manufacturer + contact information, listing your ingredients by their botanical name in order of appearance in your formula (INCI), weight of the product and appropriate warnings. 

You’re properly insured; you’ve checked different policies from different insurance companies and chose what suited you best.

You have estimated your annual self employment taxes and are familiar with the tax details of your country/state.


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## dagmar88 (Aug 1, 2009)

4)	*Business*

_Sure by now you are capable of producing a perfect product; but that doesn’t have to say anything about your skills to run a business! Running a business can be daunting, but when you have taken your time to look into every aspect of it, and have asked people with experience in this field for their advise; there is no reason why you wouldn’t be able to become your own boss._

You have created a business plan. The business plan will help you turn your visions to reality. It will define your objectives, point out strengths and weaknesses and you’ll be able to share your visions with other people, including experts and banks.
There are a lot of good business templates out there on the internet for free. Take a look ate several of them, and if necessary, combine them. 
Creating a business plan for the first time is difficult and will be very time-consuming. Take it step by step, use your brain, let people close to you read it and ask the advise from an expert when you feel you’re ready. Your business plan should include:
-An analysis of the market and it’s trends; as well as consumer trends
-An analysis of your customers; anywhere from age and income to how many hours they spend on the internet.
-An analysis of your competition.
-How and where you want to position your business
-An analysis of your business’s strengths and weaknesses
-Your objectives over a length of time.
-A financial plan.
-An overview of your product range.
-Marketing plan, cause those soaps aint gonna sell themselves!
Keep it all clear and very realistic; don’t use posh language.

Look into different business types; each one has it’s own specific character and differences, such as tax advantages and personal liability. Choose the one that suits your needs the best and register your new business.

You are sure of having access to the amount of money you calculated you are going to need to start as well as to come through the first time, either by assets of by borrowing. You can’t expect to have an income from your soap business right from the start. 

Calculate the wholesale and/or retail price of each product; including costs of your monthly expenses such as soaping space, renting a shop or keeping up your web shop, equipment, packaging, light, electricity, gas, insurance, the cost of your raw materials and your own man-hours. 

You have all the equipment needed to make a professional end product.

Also, next to the skill of soap making, you have mastered the basic skills you think you need to succeed in business. You could think of taking a accountancy/marketing course or a training in people skills.

I do not want to discourage anyone making or selling soap; but it is important to recognize for both experienced and new soapers there’s more to selling soap than making a good product.
Getting into sales will be a hard and long process, and even when you’ve managed to make it happen; don’t expect this to form your sole income. 
If anyone has a suggestion or remark, please let me know!


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## krissy (Aug 1, 2009)

thanks for this post. i will refer back to it again and again.


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## oldragbagger (Aug 1, 2009)

Informative, well thought out, comprehensive, thought provoking and eloquently stated.  Thanks, Dagmar.


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## topcat (Aug 1, 2009)

Thank you for sharing this dagmar - very much appreciated and a great reference tool.
_
(ORB - love your pic!)_

Tanya


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## vivcarm (Aug 2, 2009)

Excellent info!


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## Vinca Leaf (Aug 2, 2009)




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## dagmar88 (Aug 2, 2009)

Thanks girls! lol, 2 years ago I though 'd be in business within a year. Boy was I wrong; back then it seemed a lot more simple than it turned out to be!


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## oldragbagger (Aug 2, 2009)

After a lot of thought, the big business route probably isn't going to be the way for me.  I have owned my own business before, twice.  And both times it started with something I absolutely loved doing and the business end of it turned it into drudgery... the need to"produce" took the fun out of just doing.  I really don't need the pressure, or the money.  (Not that we're wealthy, but I just don't need to sell soap to eat.)

What I would like to see happen though, is that I would like to sell a little here and there just to support my habit.  If I could subsidize the costs of my equipment and supplies so that I could play with it and experiment with wild abandon, and give it freely as gifts,  and not have to feel guilty about spending all that money out of our budget, that would be quite enough for me.
Anybody else out there taking that approach, just selling enough to pay for "your fix"?


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## Guest (Aug 2, 2009)

oldragbagger said:
			
		

> What I would like to see happen though, is that I would like to sell a little here and there just to support my habit.  If I could subsidize the costs of my equipment and supplies so that I could play with it and experiment with wild abandon, and give it freely as gifts,  and not have to feel guilty about spending all that money out of our budget, that would be quite enough for me.
> Anybody else out there taking that approach, just selling enough to pay for "your fix"?



I say Amen!


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## dagmar88 (Aug 2, 2009)

Hey Oldragbagger,
From what I know that shoudn't really be a problem; as long as you don't sell soap to make a profit, you're allowed to sell as a hobby.
So you could make a calculation of what each of your soaps costs and make sure you calcultate everything from molds to gass. 
When can show you break even, you're fine.


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## oldragbagger (Aug 2, 2009)

That's awesome!!!  That's what I'm talkin about  :wink:


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## artisan soaps (Aug 2, 2009)

..


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## heyjude (Aug 2, 2009)

You put alot of time and effort in your guide. Whether I ever sell or not, I really appreciate that fact.

 As oldragbagger mentioned, it would be nice to just break even to help my "fix!"

Thanks!    

Jude


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## oldragbagger (Aug 2, 2009)

artisan soaps said:
			
		

> So if I'm saving money on fruit/books etc, then I can spend that on oils (trying to convince myself here - please feel free to enable) and while I'll never break even, it all helps



Consider yourself enabled, Artisan.  It all makes perfect sense to me! :wink:


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## Tabitha (Aug 2, 2009)

dagmar88 said:
			
		

> Hey Oldragbagger,
> From what I know that shoudn't really be a problem; as long as you don't sell soap to make a profit, you're allowed to sell as a hobby.
> So you could make a calculation of what each of your soaps costs and make sure you calcultate everything from molds to gass.
> When can show you break even, you're fine.



Not so in the US. If you sell 1 bar of soap you must collect sales tax & have your biz set up to meet your state standards.


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## Rosey (Aug 2, 2009)

I appreciate your guide dagmar. It's a lot to think about and I'm overwhelmed so I try not to think too much about selling. I'd love to (in the future). Right now I'm making soap and I'm about to ship it to willing testers just to see what they think and that will give me a good idea I think and keep working on it until I feel I'm ready for the next step. 

Soap making is so relaxing and I love it. If only I had more room in my house!  (how much would it cost to add a second floor??   )


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## oldragbagger (Aug 2, 2009)

Rosey said:
			
		

> Soap making is so relaxing and I love it. If only I had more room in my house!  (how much would it cost to add a second floor??   )



I can't be sure about this Rosey, but I think it would be cheaper to buy soap!!


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## Rosey (Aug 2, 2009)

Yeah but where would the fun in that be?


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## Guest (Aug 3, 2009)

Rosey said:
			
		

> Yeah but where would the fun in that be?



It wouldn't be any fun at all :wink:

Here is an idea though  . Bear in  mind I have no idea why the previous owners of our house did this , but . In addition to the regular shelf  ,they put an 18 inch wide shelf in all the closets about 2 or 3 feet  feet from the ceiling , if I run out of room to store soap I figure that space is fair game 

Kitn


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## gekko62 (Aug 3, 2009)

Im so glad you took the time to do this Dagmar. Thankyou   

I voted yes because I do want to sell _ someday _ -just in a small,market based way as a means of breaking even.


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## dagmar88 (Aug 3, 2009)

Tabitha said:
			
		

> dagmar88 said:
> 
> 
> 
> ...



hmmm, interesting, I had read that somewhere but didn't think of saving the url...


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## oldragbagger (Aug 3, 2009)

Tabitha said:
			
		

> Not so in the US. If you sell 1 bar of soap you must collect sales tax & have your biz set up to meet your state standards.



Actually, there are exceptions to that also.  The main one is selling online or to customers outside your own state.  If you are selling "across state lines" you do not collect taxes.

Another exception would be if you are selling wholesale to someone else who is going to resell.  In that case, it is their responsibility to collect the sales taxes.


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## Bnky (Aug 18, 2009)

Thank you for this very informative post.  HELP...I would love to sell soap in the future, and am still working on a spreadsheet and business plan in hopes that one day I can (as well as a perfected soap).  But after much research; on corporations/LLC, insurance, copywrights, trademarks, figuring costs of materials, website, etc.,  I can't imagine how much soap I would have to make and sell to come out ahead.  And, when I see some soaps are selling below $3.50 for a bar, I know I could not compete with that kind of pricing.  Can you explain how it is done?  Thanks for any assistance.
Bnky


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## oldragbagger (Aug 18, 2009)

Bnky said:
			
		

> Thank you for this very informative post.  HELP...I would love to sell soap in the future, and am still working on a spreadsheet and business plan in hopes that one day I can (as well as a perfected soap).  But after much research; on corporations/LLC, insurance, copywrights, trademarks, figuring costs of materials, website, etc.,  I can't imagine how much soap I would have to make and sell to come out ahead.  And, when I see some soaps are selling below $3.50 for a bar, I know I could not compete with that kind of pricing.  Can you explain how it is done?  Thanks for any assistance.
> Bnky



Those are really great questions, and legitimate concerns I think.  I have been grappling with the same issues.  I do not want to have a large business.  I have a good, secure job that I like.  I have an 80 year old house that is in "constant need" and my husband and I are active boaters.  So..... soap is a wonderful hobby and pastime and I love it very much, but cannot foresee the day anytime in the near future where there would be enough time in my days to produce and market (which I think takes even more time than actually making the soap) the amount of soap that you would have to sell to cover all those costs you mentioned.  

I can see how LLC, license expenses, insurance and the rest would absolutely exceed $500, and depending on where you live could come closer to $1000 a year.  If your actual profit on a bar of soap were $2.00 after the costs of making it, packaging it and marketing it were accounted for (and I think that is being terribly optimistic to start with, I think $1.00-$1.50 is more realistic from the figures I have come up with) then your first 500-750 bars of soap are givaways.
I make about 15 bars a week tops, sometimes less if I'm playing with test batches, so, let's see, it would take me 50 weeks to make enough bars to cover my costs.  And the marketing part would probably knock the fun right out of it, because there would be pressure.  Now I'm into for all these expenses so I HAVE TO make and sell enough soap.
Good grief, I start feeling panicky just thinking about it.

But what I would really love to do is just sell a few bars here and there to help subsidize the costs of my habit.  Not fully cover it, I mean, there's such a fun factor in it for me, and I love giving it as gifts, and we all spend money out of our pockets to have fun and give gifts, right??  But in the process of having fun, I do end up making more soap than I can use or that I have reasons to give away.  

I have read on other sites where some soapers, who sell it as hobbyists only and not as serious business people, say that they have just decided to take the risk.  But it's a pretty big risk in my opinion.  It's not like you're selling handmade aprons.  This is stuff that they are going to take and rub all over thier bodies.  It almost makes it IMPOSSIBLE to think of selling soap as a hobby venture.  Unless you are selling to friends, co-workers and acquaintences, people who you trust, who are not going to be likely to engage you in litigation if it turns out one of your bars of soap doesn't agree with them.

If there is some magic answer as to how to work around this problem, I would absolutely love to hear it.


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## jarvan (Aug 22, 2009)

As a new soaper, supposing I opened a store or sold at a flea market, would I be able to answer all my customers' questions? What if one of those people inquiring about my soaps is, indeed, a very experienced soaper choosing to test me? Could I answer those questions rationally and without hesitation or fudging? NO. I could not do those things at this point and not at any time in the near future. Once I feel confident to field all this and carry liablity insurance, then fine. For now, I have no business selling my wares to any customers. Now...giving them out as testers...another story. How will I ever learn what works for others if others never test my product.


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## oldragbagger (Aug 22, 2009)

jarvan said:
			
		

> As a new soaper, supposing I opened a store or sold at a flea market, would I be able to answer all my customers' questions? What if one of those people inquiring about my soaps is, indeed, a very experienced soaper choosing to test me? Could I answer those questions rationally and without hesitation or fudging? NO. I could not do those things at this point and not at any time in the near future. Once I feel confident to field all this and carry liablity insurance, then fine. For now, I have no business selling my wares to any customers. Now...giving them out as testers...another story. How will I ever learn what works for others if others never test my product.



In some respects, I do see your point, Jarvan.  And this becomes increasingly complicated and important as your line of products becomes more complex.  I can see where the learning curve can be high if you're making a half dozen different soap recipes and additional bath and body.   I know there are a lot of soapers out there, and on this forum as well, that want to find a niche by finding "solutions" to peoples skin problems or make products that address particular needs.  And for these people, definitely, being well educated is an absolute must.  Obviously, you can't speak with any authority about why your product is able to acheive these desired effects if you aren't well educated on the subject.  Same is true for those who want to create their own "unique" recipes and are trying uncommon things.

But soap, in and of itself, if kept basic, is really a pretty simple commodity that has been around for thousands of years.  Granny didn't have a masters degree in saponification when she threw it in the pot.  It was a basic necessity produced in a very simple way.  I'm not producing complex chemical formulations aimed at curing anyone's skin problems. That may be what some choose to do, but I am not a member of that group.  I have one basic, simple recipe that I only vary in which butters I add (shea, cocoa or mango at this point).  It has been tested and proven over time, long before I started using it,  because it is such a basic recipe that you can find on dozens of websites and in numerous books.  I make soap, plain and simple, from the most basic oils, with a little fragrance added.  No reinvention of the wheel here.  _(But, I grant you, if I was trying to come up with something totally new and unproven, I'd want to be darn sure that my thinking was correct and my desired outcome had been acheived with lots of testing before I unleashed it on an unsuspecting public.)_

If I can't explain basic soap principles to people, then, you're right, I would have absolutely no business selling anything.  But my one basic recipe has been used and tested by numerous friends and family for several months now, many bars, with nothing but rave reviews and no problems, and I have spent untold numbers of hours until late into many nights reading and researching anything and everything I could find on the subject.  (I had been doing that long before I ever made my first batch, and do it still almost obsessively.  Ask my husband.)  

I still have some of the first bars made in my linen closet, no DOS, and nothing else remarkable or unusual, just soap.  

I think I understand the *basics* of soap.  I don't think it takes a rocket scientist to understand or explain it in it's simplest form. Unless I was aiming for something more complicated than a basic cleansing bar, I am having a hard time understanding how hard it would be to explain to someone that my simple OO-CO-PO-Castor soap is going to get them clean, and it smells nice and that's pretty much the end of the story.

I do agree with you on the insurance issue though, which is why I have not sold any soap, and may not ever do so unless I foresee that I have the time and commitment to make and sell enough soap to cover the cost of insurance. (Except perhaps for the occassional friend or co-worker.)  And that doesn't have anything to do with having doubts about the safety of my soap.  It has more to do with the nature of people and knowing that there are those out there who would just love to try and sue you because they trip and fall in the bathtub because they stepped on the bar of soap you made.  Think hot coffee in the lap.)


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## Guest (Aug 22, 2009)

Good post Dagmar Thank you for taking the time to do it ,  it is much appreciated .

Kitn


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