# Pricing Strategy



## Mellifera (Jan 4, 2015)

Hi All,
From the start, I've priced all my soaps the same: my standard was a bar between 4 and 4.5 ounces, and whether it had no color and no scent or was scented with expensive geranium, they cost the same. I figured that even if I made less on the geranium scented, I made more on the orange or unscented, so it all evened out to an acceptable markup. (Of course, the geranium is far more popular than the unscented, but...)

Now, with a fresh new year upon us, I'm rethinking that. I noticed that L*sh, for example, has prices all over the place for every product. And now that I'm standardizing on new molds for my soaps, some will be about 5 oz, and some 4. 

So how do people feel about this? Is it confusing to see a row of soaps from the same company, all different prices? Or is that ok? 

Thanks for input!


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## MarisaJensen (Jan 4, 2015)

I don't mind seeing different prices especially for soaps with ingredients that I know are more costly. As long as the size of the soap is appropriate to the price.


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## Saponista (Jan 4, 2015)

As long as the prices of each item are clearly displayed then I would have no problem.


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## OliveOil2 (Jan 4, 2015)

I'm thinking of doing something similar, and I know other soap makers who do charge more for their more expensive soaps. I have made an effort to have my soaps in the same size range, and this does create an issue with pricing.


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## ariella42 (Jan 4, 2015)

I don't think it's a problem, but I'd try to keep it fairly standardized to prevent confusion. Your average consumer would know that the 5 oz bar cost somewhat more to produce than the 4 oz one, and the same with scented vs. unscented bars. However, most people have no idea which EOs, base oils, etc. cost more than others. Personally, I don't care for Lush's pricing just because there's no clear indication why a particular product is more expensive than another of the same weight. As a consumer, I have no problem paying a bit more for something so long as I know why I'm paying more. I'd just make sure that your labeling reflects why higher priced items are priced higher (e.g. With Moisturing/Energizing/etc. _______________ oil/butter/essential oil).


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## Mellifera (Jan 5, 2015)

Thanks. That helps. I don't want shelves full of differently priced products, but I think there might be tiers or lines or something. Hmmm.


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## The Efficacious Gentleman (Jan 5, 2015)

As a customer, if I was buying product A and there was product B at the same price, I would be slightly miffed if it was clear that product B was actually worth more based on the ingredients.  I'd feel that I was over paying for my product.

I think that if products have a different value then there is no issue charging different prices for them.


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## Mellifera (Jan 5, 2015)

The Efficacious Gentleman said:


> As a customer, if I was buying product A and there was product B at the same price, I would be slightly miffed if it was clear that product B was actually worth more based on the ingredients.  I'd feel that I was over paying for my product.
> 
> I think that if products have a different value then there is no issue charging different prices for them.



See, that's a perspective I hadn't considered. More hmmm.


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## Soapsense (Jan 5, 2015)

I would think of it like Alcohol, you have well, call and top shelf.


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## Mellifera (Jan 7, 2015)

Soapsense said:


> I would think of it like Alcohol, you have well, call and top shelf.


Technically, all my products are top shelf.


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## CrafterAl (Jan 20, 2015)

Adding any kind of confusion to the shopping experience might be bad.

Items that appear to the casual observer to be the same, should likely be priced the same if possible.

If one of your desires is to increase the size of every sale, then you might want multiple bar purchases.

Is there an incentive to encourage multiple bar purchases? An example is a multiple bar price discount.

If so, do multiple price points complicate that incentive process?

Make it simple for the customer/shopper to give you more money and they likely will.


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## Soapacetic (Jan 20, 2015)

A possible easier way to price all your soaps the same price is to make them different weights and sizes...

i.e.   lots of jojoba, hemp, etc with pricey EO   make at 3.5 oz
standard palm, coconut, FO or cheaper EO you can make larger at 4.5 or 5.5 etc.  

You can make different thickness 1 inch, 1.25 inch, 1.5 inch to get there
or all 1 inch with different size molds 3.5x18 inch or 3x18 inch

Then price them all the same at $6.99  or wherever you need to be at.

Just have them clearly marked or shown that they are diff weights
Just a thought?


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## CrafterAl (Jan 20, 2015)

This discussions brings out the importance of actually looking at cost of each product. A clear knowledge of cost is necessary to good business decisions.


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## Saponista (Jan 30, 2015)

If I were a shopper and didn't realise that essential oils and other additives are vastly different prices, I would feel very hard done by if I saw that some soaps were smaller than others and the same price. I would possibly think that the seller was inconsistent with cutting up the bars and would choose the chunky ones only.


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## girlishcharm2004 (Feb 2, 2015)

_Personally, _I would rather see them all the same size, but different prices instead of the same price but different sizes.  It's annoying to pull out my calculator to figure out how much I'm being charged per ounce on each one.  If something seems expensive, I try to figure out why.  Maybe it's better in some way?  But to see random sizes, I feel like I'm being ripped off.

However, I have pretty much standardized my soaps.  The ones that use expensive essential oils have less in them -- so they really do cost the same as the other bar with cheaper essential oils.  My unscented bar on the other hand, I hate that it's not scented but I sell more of that one than all of my other soaps combined.  So, since people willingly pay as if it has essential oils in it, I willingly sell it to them at that price!


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## hmlove1218 (Feb 2, 2015)

I would also rather see same size different prices. I would feel like I'm getting ripped off to see Bar A be half the size of Bar B but they cost the same. I'd much rather see that Bar A and Bar B are the same size, but Bar A costs more. I'd wonder why until I picked it up and see that they have different ingredients: Bar B has coconut, palm, olive oil, and castor, while Bar A has coconut, shea, olive castor, and jojoba. Then I could make a decision of how much I wanted to spend based on perceived quality of the ingredients.

Girlishcharm made a really good point about standardizing your FOs/EOs as well. Try to balance everything out. Put you're more expensive scents in a less expensive recipe  or put less fragrance overall to balance the cost.


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## cmzaha (Feb 2, 2015)

I have three prices. My facial bars which are poured in square individual molds are a dollar more because of ingredients, salt bars are 3 oz larger than my regular bars they are also a dollar more, unfragranced castile and my just oatmeal bars are a dollar less. Regular bars get a 4 for x amount. Although my square bars are less in weight customers realize they are different, such as having Argan oil which is on the label, and do not mind paying the difference. The only higher priced oil I use in regular soaps is hemp seed oil which is used in 1 soap. Believe me customers like consistent sizes and prices. They do not know you paid a high price for a particular eo or fo. Some fo's cost double the price of an eo. For example I can get 2lbs of lemongrass for 29.00 a fragrance I love is 41.00 per lb how do you seperate price by fragrance, or just because it is an eo. I went up this year in price but my old customers remind me what they have always paid so if they ask for the 4 for twenty they get it with the agreement they do not tell any potential customers they send to me. I know if they ask for the 4 for twenty they are a return customer. We do not advertise our four for price unless they ask if we have a deal or if they are buying 3 we tell them the 4 price. Keep it simple and have uniform sizes


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## ospuro (Feb 8, 2015)

I have a standard price for my soaps that are part of my general wholesale catalog. When I was only selling retail, I had various prices. Cost of materials/goods, time it takes to make, cut and package and weight of the bar would determine my selling price. 

To avoid confusion, each price sign would highlight the key ingredients allowing customers to know why I had different prices. Actually, customers (in general) do not mind if prices vary as long as they know why. Also, I am much more successful keeping the bars the same size/weight and changing the price, than having a single price but different sizes.


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## BugSoap (Feb 22, 2015)

I would agree to keep the same sizes/weights and different prices.

Look at most any retail store and products. Especially food!
 All normal sized cans of Tuna USED to be 6.5oz, though the price varied by brand, now they ALL went to 5oz cans, and the price still varies by brand. They all use the same weight cans but all have their own price.
 Mayo, Salad Dressings, used to all be 32oz jars, now almost all went to 30oz jars, price varies by brand. They still use the same size package as each other, price varies though.

Also even in the same brands, the sizes are the same but price will vary by Low fat, or Low salt, etc.. Low/No flavor almost always costs more! LOL
Same size can and brand, but Chilly with beans costs LESS than Chilly without Beans.

People may not know WHY the price is different, but look how many people still will pay $1.50 for a 15oz can of re-fried beans when it's only $1 for the same 15oz can with a different label right next to it!

So if we look at the BIG GUYS we see they mostly all go with the same sized package for that type of product, but they vary the price allot!

Canned vegetables is really bad! They all use the same size can, but one brand is $0.50 and another is $0.75 and another is $1.00
 I have had all 3 at the same time, I can not tell the difference myself!  The $0.50 can seemed to have just as many peas in it after drained as the $1.00 can had, and both tasted the same to me!
 So why do people pay $1 for 1/2 a can of peas when they could pay $0.50 for same 1/2 can? LOL

When products start to vary the sizes that's what aggravates people often, and when they may just walk away not buying anything! Like cereal! This box of sugar coated rice is 12oz, that one is 14oz, that box of plain crispy rice is 18oz but the other is 13oz, Oh heck with it I'll just cook waffles instead! LOL


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## REDD (Mar 9, 2015)

Have you done a complete cost break down on each and very type of soap to include all ingredients, packaging, your time, electricity, insurance,  advertising etc both per batch & bar ? 
After seeing the differences and the amount needed to stay open monthly and daily- again complete cost- insurance, space rent, electricity, water, toilet paper, labor,  cleaning supplies, start up cost - like molds, pans,  mixers, scales, containers, cutters etc, supplies, EVERYTHING - before you show profits again both daily & monthly & your start up recovery.

I think if/when you see the numbers down next to each other, that you may change your mind-if what I just stated is "Greek" to you, gather all receipts to take to a FREE consultation to your local  Small Business Bureau and they'll be happy to show you and assist you. Most of their services are free some do have minor fees. But they are cheaper than other sources and Great at their jobs.
Many states and counties-if you're in the USA have free grants, other free money's, no-or-low interest loans for start up and on going businesses.
Even more if your female, a minority, a veteran, a widow, widow of a veteran, parent of special needs child/children, or disabled.


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## REDD (Mar 9, 2015)

Ps a sign or notice stating something to the effect of the differences in prices reflects the differences in the ingredients-some of which run approximately $xxxx.00 per ounce - & you'd be happy to point out the more expensive ingredients if asked

Well you get the idea & so will your customers


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## rip55jcp (Mar 10, 2015)

If you continue along the lines of the alcohol analogy (well, call, top shelf), why not have different lines of soap, with different labels for each.  That would help people quickly understand that the higher price soaps have something extra worth paying for.

Doesn't have to be many lines, maybe just two, "Regular" and "Select"


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