# Are you able to price your soaps what they're really worth?



## Maythorn (Mar 7, 2013)

I've been looking online and shopping and I have the feeling handmade soap is underpriced in a lot of cases.  I looked on ebay at Christmas and saw someone's soap at $.99 each like they were just desperate to sell it at any price.  I see that there's a lot of competition.  Many things are sold for more than they're worth but I hope at least some of you get fair prices for all your ingredients and hard work.  

Plus some soaps are unique in design and scent and may only be available from you.  I haven't thought up any soaps that are different or uniquely mine but I'm trying here and there.  I love soap but I guess I'm not committed enough to create fantastic colors and designs.  But I think they should get top dollar.


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## RocknRoll (Mar 7, 2013)

I'm glad you mentioned this. Only moments ago after making my Silver water sap (with expensive FO and complicated design) that soaps that either cost more to make due to certain ingredients or designs that are labor intensive or uniquely your own should sell for more. Im sure customers wouldnt mind spending a little extra for an "extra-ordinary" product. When I do get my shop opened up on Etsy, My soaps will be priced accordingly and not just one price or any bar. Thank you for just validating my reasoning with this, perfect timing


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## melstan775 (Mar 7, 2013)

Price is almost never the first determining factor in a purchase; it's usually the last.  This is because everyone has budget concerns and they have an idea of how much they want to pay for something. The trick is to find your audience and sell to their price point. If everyone was looking for the cheapest deal, no one selling anything over $1.00 would be in business. Why pay $5.00 for socks when you can get some for $1.00, for example.  Things are underpriced, but maybe not what you think. 

Say for example someone is buying a soap for a gift. They might be like, "4-5 bucks for a bar," then end up paying 6 for a big fat 6 oz bar, if they can swing it, or if they decide the quality is well worth the purchase. Of course, if it's 3 bucks for a 6 oz bar, they might buy it, but smart buyers wonder why some things are underpriced. People who sell at low prices have a mentality that price is their only competitive point; they sell low because they *don't know how* to sell high. You can't control someone else's budget or what they are willing to spend on what you're selling, but you can price your products to their worth for what the market will bear and spend your time finding the people who will pay for what you're asking. Don't assume that just because someone is a waiter they are making minimum wage, for example. I've known some service people who are way better off then I am. It's up to the buyer what they will spend, it's up to you to price and sell. Creating demand is a huge part of sales, much more then what someone has in their pocket.

Here's a video from Soaping101 that talks more about pricing. She has a lot to say and has some different theories of pricing. Enjoy. 

[ame]http://www.youtube.com/watch?v=FqVNU9eN9DU&list=UU6NFc1XyVdzuyQw-f9HG42g&index=24[/ame]


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## Maythorn (Mar 7, 2013)

Interesting and same teacher as the salt bar tutorial.  That said, I guess I would hope people find their best audiences so they don't have to take whatever they can get like the goat milk soap I saw on ebay.  It must tough at a fair where you may be pricing your soaps a little higher according to your materials and effort and someone a few tables away is thinking, this is a brutal economy, better set practical prices so I don't turn people off.   

Few people seem to understand the price of essential oils.  They never thought about it unless they shopped at a health food store and saw them and were like, wow, I had no idea patchouli oil cost so much!  Therefore a patchouli soap should be very expensive. Unless you can find a good fake and I honestly don't think that many people would care because they just wanted the nostalgic scent.  Lavender, probably more care because they read about aromatherapy.   

It seems like once you step into making soap, you're in a different world. Then to convince customers of the awesomeness of your ingredients, staying within federal guidelines about not making cosmetic or health claims, would be tricky to do.  That's probably where eye-candy, highly fragrant soap is easier to sell, though not easier to make.  I made plain as sin lavender essential oil goat milk soap and to have somebody pay $6 for it they'd have to appreciate that it's worth it.  Only my family and friends do as of yet because I told them.


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## melstan775 (Mar 7, 2013)

Maythorn said:


> Interesting and same teacher as the salt bar tutorial.  That said, I guess I would hope people find their best audiences so they don't have to take whatever they can get like the goat milk soap I saw on ebay.  It must tough at a fair where you may be pricing your soaps a little higher according to your materials and effort and someone a few tables away is *thinking*, this is a brutal economy, better set practical prices so I don't turn people off.
> 
> Few people seem to understand the price of essential oils.  They never thought about it unless they shopped at a health food store and saw them and were like, wow, *I had no idea patchouli oil cost so much!*  Therefore a patchouli soap should be very expensive. Unless you can find a good fake and I honestly don't think that many people would care because they just wanted the nostalgic scent.  Lavender, probably more care because they read about aromatherapy.
> 
> *It seems like once you step into making soap, you're in a different world.* Then to convince customers of the awesomeness of your ingredients, staying within federal guidelines about not making cosmetic or health claims, would be tricky to do.  That's probably where eye-candy, highly fragrant soap is easier to sell, though not easier to make.  I made plain as sin lavender essential oil goat milk soap and to have somebody pay $6 for it they'd have to appreciate that it's worth it.  *Only my family and friends do as of yet because I told them*.



I bolded the parts of your response that are essential to understanding sales.  One, people have no idea what your supplies cost. Nor is it their business. But, shoppers are looking for a great value on the money they are willing to spend, and as the soap expert, it's your duty to tell them.  

I don't believe for a second that economy or perceptions of economy or place have any bearing on what people will spend. People know what their budget is. You don't, but it's none of your business either. As long as people keep using "the economy is too bad to pay that price," a few negative things will happen: 

1. The economy won't improve
2. Independant merchants will falsely think they have to lower their prices and devalue their work to make sales
3. The lack of products moving lowers demand for products and make the economy worse. 

No one at SoapWorld,  Sally Beauty, Kroger, Piggly Wiggly, or any other store had a problem raising their prices when inflation went up. You have to, also. The person selling rock bottom may or may not sell their goods, but at low prices, they will not have enough money to justify staying in business or even replacing their product. 

If you sell your goods for what they are worth, you will probably grow slower in this economy, but you create a longer history of stable sales and slow upward growth.  Growth trends are a key in long-term success. Short sales = short lifespan. 

On a final note, it's complete fiction that the world of soap has different rulesets then other kinds of businesses. Every industry segment has rules and regulations to follow and different market considerations to bear. As a hairdresser I consistently turn down $75.00 highlight jobs on hair that isn't worth my while to do unless I'm getting paid at least $100.00.  $25.00 is a big difference, and if the customer can't pay it, they can't pay it. Sure, I don't get the job, but I don't need it. I'm not desperate enough to lower my fees or take the cut. I don't need predator clients, either. Pay what I'm worth, or find someone who you can afford to pay. 

I guess what I am trying to say, inarticulately, is it's not about getting the money. It's about _how_ you get the money.  Are you willing to let customers dictate what your prices should be? Will you lower the value of your work and cut into your profits to make a few dollars? Is it worth it to you to take a lower profit? Things to consider when you're deciding if you're making is going to cover that next bottle of patchouli that just went through the roof.


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## melstan775 (Mar 7, 2013)

Rock&Royalty said:


> I'm glad you mentioned this. Only moments ago after making my Silver water sap (with expensive FO and complicated design) that soaps that either cost more to make due to certain ingredients or designs that are labor intensive or uniquely your own should sell for more. Im sure customers wouldnt mind spending a little extra for an "extra-ordinary" product. When I do get my shop opened up on Etsy, My soaps will be priced accordingly and not just one price or any bar. Thank you for just validating my reasoning with this, perfect timing



you know I just had a thought. Since it appears your costing your products now, higher costed products should have a different design then your lower costed products. Create a high-end look to demand that high-end price. Perhaps a signature swirl or putting the bars into individual 3D molds or something else that will set them apart. Creating a whole image for a higher costed product gives it the illusion you have more then one line of products.


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## Maythorn (Mar 7, 2013)

I actually don't sell and don't know if I want to.  I browse and shop on Etsy, as well as ebay and I see that people must knock themselves out to make these beautiful creations.  I only hope they are doing well or at least making some money off their thoughtful, attractive ads which they also put a lot of effort into.  I can't even get to all the pages.  In my humble opinion, many handmade soaps are very luxurious and deserve to be priced accordingly.  

The public doesn't know what goes into other kinds of fine crafting, either.  Not unless they do it or have been exposed to the process.  I've been to fairs where I might think something is pricey but there must be a reason or I have heard the reason, like semi and precious metals and gemstones on the rise in cost.  Wood for carvings, too.  I've both given in and spoiled myself or someone else but held back to conserve money, too, even though I really wanted something.  I go about half and half on that LOL.


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## Genny (Mar 7, 2013)

Maythorn said:


> The public doesn't know what goes into other kinds of fine crafting, either.  Not unless they do it or have been exposed to the process.



This last Christmas I had someone ask me to crochet a king size blanket for them.  They asked me how much it would cost, I told them $400.  They were very mad and said, "I'd never pay more than $50 for a blanket."  Of course then they went on about how my price was way too high for a bunch of yarn.  They obviously don't understand the time it takes to crochet something that large.  


I do get the occasional people tell me that they would never pay $5 for a bar of soap when they can get 2 for $1 at the dollar store.  Such is life.


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## AlchemyandAshes (Mar 7, 2013)

This is the absolute hardest part of any business for me (I was a hairstylist for years too...then a soap/metaphysical business...then gemstone/sterling jewelry...then soap again  )...any time money exchanges hands. Melstan made some very valid and intelligent points. 
I understand the concept of pricing and what details to include in your consideration...but I always have little doubts when I pick a price because there is a large soapmaking market (competition), and many consumers do not know the difference between MP or CP, FO or EO...So I work hard to educate them on the differences, and therefore "justify" my pricing. I definitely need to raise my prices...EOs aren't cheap. My prices would definitely have to go up if I had a brick & mortar shop (one day!). I would like to get $7.50 a bar...but I think in the farmers market/craft show arena, I would price myself right out of the competition. In a store setting, I'm sure I could get that amount, but then I'd have to pay a consignment commission (usually 30% here)...so I'm back to square one. I'm rethinking the size of my bars, even though that's a big selling point to my customers...large 6.5 oz bars that are 1.5" thick. They know they are getting more for their money...but that's certainly not to my benefit. I love making soap, I love people getting the benefits of using my soap...I guess I just have to decide if I'm just going to keep my business going to feed my hobby/addiction and share what I do with others for minimal profit...or do I want to get paid for my time and effort.
Ugh...:???:


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## SpiralTouch (Mar 7, 2013)

If she was selling soap at $1 a bar, she was probably using cheap oils like soy, crisco, etc

I use only high quality soap oils (coconut, shea, olive, avocado, etc) and the price has to be higher. A lot of people looking for handmade soap are specifically looking for the higher quality ingredients. I know I wouldn't buy a cheap bar - I started buying handmade soap specifically for the good natural ingredients.

I hope my soap will sell for $5 or $6 for the big 6 oz bars. If not, I can't lower the prices to $1 because people don't understand the ingredients.

Maybe a little flyer that people can grab that explains the difference between your handmade soap and the 'soap' you get at wal mart, dollar store, etc


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## SpiralTouch (Mar 7, 2013)

Genny said:


> I do get the occasional people tell me that they would never pay $5 for a bar of soap when they can get 2 for $1 at the dollar store.  Such is life.



DH just said "it's like comparing fine dining to McDonald's"


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## Marilyna (Mar 7, 2013)

SpiralTouch said:


> I hope my soap will sell for $5 or $6 for the big 6 oz bars. If not, I can't lower the prices to $1 because people don't understand the ingredients.
> 
> Maybe a little flyer that people can grab that explains the difference between your handmade soap and the 'soap' you get at wal mart, dollar store, etc


 
I would suggest cutting your bar size down to 4 oz for the $5 or $6.  

When I first started making soap in '99, the most common pricing advice was to price your soap at $1 per ounce.  Surprisingly, many people are still pricing their soap at $1 per ounce.  

I can tell you, and I'm sure everyone knows that costs have gone up drastically since '99, so I would hope people would start raising their prices.  I know that since I left soaping last time 6 years ago, some of my base oils have gone up by 50%.  Some things haven't gone up that much, like shea butter and fragrance oils.


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## SpiralTouch (Mar 7, 2013)

Marilyna said:


> I would suggest cutting your bar size down to 4 oz for the $5 or $6.



I would love to do that.. I suppose I'm a bit nervous about being able to sell them. I know the quality of the oils I use does justify the $5 or $6 per 4 oz bar.
Maybe I'll offer a small discount for multiple bars

And you are right about prices being high for base oils. But I often spend the same amount in essential oils as I do base oils in a batch of soap. The EOs are very pricey

The local co-op where I buy food sells handmade soap. There is a soap (I used to buy before making my own) at $3 a bar. It's a typical palm, coconut, olive bar with very light fragrances. I still don't understand how that producer can be making a profit if they are retailing for $3. They must make a LOT of soap that they sell to retailers so the numbers add up.


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## Marilyna (Mar 7, 2013)

SpiralTouch said:


> The local co-op where I buy food sells handmade soap. There is a soap (I used to buy before making my own) at $3 a bar. It's a typical palm, coconut, olive bar with very light fragrances. I still don't understand how that producer can be making a profit if they are retailing for $3. They must make a LOT of soap that they sell to retailers so the numbers add up.


 

What size are their bars?  I like heavy scent.


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## SpiralTouch (Mar 7, 2013)

Marilyna said:


> What size are their bars?  I like heavy scent.



I think they are 4 or 4.5 oz

The light scent is the only way I can see the $3 pricing since EOs are often the most expensive ingredient. But that means they are only selling wholesale for $1.50 or so. I can't compete with that!


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## Marilyna (Mar 7, 2013)

No need to compete with them.  Just find a different venue for yours.


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## VanessaP (Mar 7, 2013)

Genny said:


> This last Christmas I had someone ask me to crochet a king size blanket for them.  They asked me how much it would cost, I told them $400.  They were very mad and said, "I'd never pay more than $50 for a blanket."  Of course then they went on about how my price was way too high for a bunch of yarn.  They obviously don't understand the time it takes to crochet something that large.



Oh I totally get the crochet part. I was making hats for the kids back in the fall while I was at work and some of the construction guys staying at the motel asked me how much I charge for them. I told them that if it was a color I had in my stash already, $15 to $20, depending on which hat they wanted, and if I had to order or buy the color then it would be another $5 or so. Most of them blanched and ignored the hats after that LOL

However, my friends actually understand that the price is based on time. Sure, if you want that king size blanket for just the $50 yarn cost, learn to crochet and make it yourself. Otherwise, you are going to have to pay for my time and talent. Grrrr.


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## SpiralTouch (Mar 7, 2013)

Marilyna said:


> No need to compete with them.  Just find a different venue for yours.



Yeah. I am not really planning on doing wholesaling, just a market booth at first. We'll see after that


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## danahuff (Mar 7, 2013)

Maythorn said:


> I actually don't sell and don't know if I want to.  I browse and shop on Etsy, as well as ebay and I see that people must knock themselves out to make these beautiful creations.  I only hope they are doing well or at least making some money off their thoughtful, attractive ads which they also put a lot of effort into.  I can't even get to all the pages.  In my humble opinion, many handmade soaps are very luxurious and deserve to be priced accordingly.
> 
> The public doesn't know what goes into other kinds of fine crafting, either.  Not unless they do it or have been exposed to the process.  I've been to fairs where I might think something is pricey but there must be a reason or I have heard the reason, like semi and precious metals and gemstones on the rise in cost.  Wood for carvings, too.  I've both given in and spoiled myself or someone else but held back to conserve money, too, even though I really wanted something.  I go about half and half on that LOL.



Actually, I have appreciated the time and creativity more when I could see it in action. I watch soaping videos all the time, and I bought soap from a fellow soaper after watching her make it. I am planning to start doing videos, too, mainly because I see them as an opportunity to educate my potential customers and attract more customers.


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## Maythorn (Mar 7, 2013)

SpiralTouch said:


> If she was selling soap at $1 a bar, she was probably using cheap oils like soy, crisco, etc
> 
> I use only high quality soap oils (coconut, shea, olive, avocado, etc) and the price has to be higher. A lot of people looking for handmade soap are specifically looking for the higher quality ingredients. I know I wouldn't buy a cheap bar - I started buying handmade soap specifically for the good natural ingredients.
> 
> ...


 
I don't recall that the ingredients looked cheap and that was what made me wonder about it.  The soap may have been better melt and pour with goats milk, not cp which still wouldn't lessen the value.  I just rememberl thinking that wow, this person must be needing cash or got overstocked.

I would say in the case of all these great soaps and the blanket for that matter, stick to your guns.  A worthy customer would know and appreciate what they were getting. Or be willing to learn and see the difference between handmade and Irish Spring for instance.  But you can never break some guys away from that kind of soap I swear.


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## Cherry Bomb (Mar 7, 2013)

Before I ever started thinking about making soap, I always ordered from this company. I did not kind paying $6 a bar for a soap this in my opinion worked excellent with my skin. When I moved 3.5 hours away from her store I became an online customer. Soaping can be expensive and Alchemy and Ashes.....I would pay $7.50 for your soap. Not only are you very knowledgeable but your product is eye appealing and your EO blends are awesome.  yes I stalked your site lol

http://stores.homestead.com/bwsoap/-strse-BATH-BARS/Categories.bok


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## AlchemyandAshes (Mar 7, 2013)

Cherry Bomb said:


> Alchemy and Ashes.....I would pay $7.50 for your soap. Not only are you very knowledgeable but your product is eye appealing and your EO blends are awesome.  yes I stalked your site lol



Aww, thanks! That's very sweet of you...feel free to stalk anytime


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## paillo (Mar 7, 2013)

I've debated charging different prices for my soaps - more for those with expensive EOs and exotic ingredients, less for more inexpensive FOs or for M&P. But looking at the competition on Etsy and in local markets I don't know if that would be practical, so have settled on charging the same $6 for every bar. Mine are worth it, I use only top-quality ingredients and spend time on design. And I don't even care about those looking for dollar store values, they're not my market. My M&Ps are natural-based with a lot of thought and design, and I don't want to charge less for those either. Hmmm. It's a quandary indeed... Shawnee, I would definitely pay more for soaps like yours.


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## melstan775 (Mar 7, 2013)

AlchemyandAshes said:


> This is the absolute hardest part of any business for me (I was a hairstylist for years too...then a soap/metaphysical business...then gemstone/sterling jewelry...then soap again  )...any time money exchanges hands. Melstan made some very valid and intelligent points.
> I understand the concept of pricing and what details to include in your consideration...but I always have little doubts when I pick a price because there is a large soapmaking market (competition), and many consumers do not know the difference between MP or CP, FO or EO...So I work hard to educate them on the differences, and therefore "justify" my pricing. I definitely need to raise my prices...EOs aren't cheap. My prices would definitely have to go up if I had a brick & mortar shop (one day!). I would like to get $7.50 a bar...but I think in the farmers market/craft show arena, I would price myself right out of the competition. In a store setting, I'm sure I could get that amount, but then I'd have to pay a consignment commission (usually 30% here)...so I'm back to square one. I'm rethinking the size of my bars, even though that's a big selling point to my customers...large 6.5 oz bars that are 1.5" thick. They know they are getting more for their money...but that's certainly not to my benefit. I love making soap, I love people getting the benefits of using my soap...I guess I just have to decide if I'm just going to keep my business going to feed my hobby/addiction and share what I do with others for minimal profit...or do I want to get paid for my time and effort.
> Ugh...:???:



Shawnee brings up some very valid and important points also. Her price considerations and material types illustrate what I was saying about market conditions. What I would do in Shawnee's place, if I were trying to have a brick & morter store AND stay in the craft fair circuit, is have an email list. Email lists are important for a lot of reasons, one is you can market to your clients continually for something they want and signed up for. So, for example, "I'm at the craft fair this weekend, all bars are only $6.00. Can't make it, here's a coupon for $1.00 off your next single bar purchase or 10% off your next purchase of $12.00 or more."  Keeping your clients' budget and time mind will show them you respect and appreciate their business. And what to do if they say, "How come it's cheaper here then in your store?" Just tell them, craft fairs are a one day event. Have coupons on hand or be prepared to cut a small deal or give a small gift. Small things like that go a long way.


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## JackiK (Mar 12, 2013)

Genny said:


> This last Christmas I had someone ask me to crochet a king size blanket for them.  They asked me how much it would cost, I told them $400.  They were very mad and said, "I'd never pay more than $50 for a blanket."  Of course then they went on about how my price was way too high for a bunch of yarn.  They obviously don't understand the time it takes to crochet something that large.
> 
> 
> I do get the occasional people tell me that they would never pay $5 for a bar of soap when they can get 2 for $1 at the dollar store.  Such is life.



Not trying to hijack this thread, but I made a bedspread one time out of fine cotton thread.  Someone asked me how much and I told them at $10.00 an hour, the cost would be $1500.00.  The look on their face was priceless!


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