Better profit

[Tabitha]

What are you doing to sabatoge your profit margin? I can think of a few things I do that cut into my profits.

1) I buy WAY too many new scents, ingredients & packaging on a whim I do not need & do not use. A slim, firm line, I find is the key to higher profit margins.

2) I ship too slow & then feel bad I did not ship quick enough so I throw in a free item for their trouble.

3) I don't always charge enough for shipping, ESP on international orders.

4) including thank you gifts in each order that cost too much.



Things I have done to increase profits:

1) Narrowed down my suppliers so I do not have to pay for shipping from 12 different places :wink: .

2) Buy in larger bulk.

3) Gotten less uptight about packaging. I include a statement at my online venues that says "AFFORDABLE QUALITY: In order to always bring you quality items at affordable prices, exact containers may vary slightly."

4) Always recycle packaging and added this statement "In order to cut costs as well as help out the enviornment, we will use recycled boxes and packing material whenever possible."

 

[LomondSoap]

I buy far too many luxury oils in too large amounts, then don't use them, or use for superfatting only.
When I need (let's say) coconut oil, I also order a few fragrances, eo's, some new colours etc etc, so I double the cost of my order.
Soaps I've made that didn't turn out quite the way I wanted get put aside instead of trying to sell them even as a bargain bag. Result I have a soap mountain!
I don't have a set range (yet) so I'm always experimenting which means I NEED all those extra purchases
Don't even get me started on packaging!

On the otherhand I'm always looking for the cheapest oil supplier and buy in bulk. I've yet to find that illusive supplier that beats them all, but I will
I use what's around the house, food ingredients, they're often fairly cheap, honey, cocoa powder, milk, carrots, fruit.
I buy my lye in bulk from a chap who makes biodiesel.

 

[Tabitha]

I have a soap mountain!

Me too! Sometimes I donate them to a women's shelter etc.

 

[Guest]

profits

I am on the East Coast, so I am trying to find suppliers - even small ones near me to provide the items I need.

Shipping from the West Coast is just too costly. I have found some small companies like Coastal Scents in Florida that provide me some of what I need.

And there are packaging companies in and near Georgia that are both cheap and fast.

I deliver orders myself that are within a 30 mile radius of my home. I don't ship.

 

[Greenman]

I am currently looking at ways to save money/cut costs as i am just starting up. I am working on finding a base soap taht I love and can use as my basic soap then offer a handful of other "special' soaps that use a different recipe. i am also looking at all the the possible suppliers and cost comparing to include shipping to see who has hte best overall prices.

There is more but alas I am at work and should work =(

But Thanks for all of the infor in this thread.

Roy

 

[digit]

1) I buy WAY too many new scents, ingredients & packaging on a whim I do not need & do not use.

4) including thank you gifts in each order that cost too much.

1. But ya gotta smell them all!! I do wish I lived closer to a supplier so I could shop and sniff at the same time. Then again...........I would be there all the time.

4. Could you offer discount coupons instead? I would use them to get things I couldn't get the first time.

Digit

 

[pepperi27]

What are you doing to sabatoge your profit margin? I can think of a few things I do that cut into my profits.

1) I buy WAY too many new scents, ingredients & packaging on a whim I do not need & do not use. A slim, firm line, I find is the key to higher profit margins.

*I've done the same! I have over 40 bottles not to mention sample sizes. Which is why I've closed my shop. I was stretching myself so far that my store got out of control. So I put myself on vacation, been researching what particular scents have sold for me and thats it. I'm no longer going to over buy anything that I do not need.

2) I ship too slow & then feel bad I did not ship quick enough so I throw in a free item for their trouble.

*This I do not have a problem with because I'm known for shipping pretty fast! Then again I'm not as busy as most people being that I only had a few orders a week!

3) I don't always charge enough for shipping, ESP on international orders.
*My shipping prices are okay now but before they were bad. I don't do international but canada only.

4) including thank you gifts in each order that cost too much.

*This is another thing I'm fixing including the fact that I don't pre-prepare the samples and when I'm rushing I just throw in a full size sample. Also I've noticed I get repeat sales when I include a sample of another soap I'm currently selling rather than something I'm not or have low stock. Go figure? LOL

Things I have done to increase profits:

1) Narrowed down my suppliers so I do not have to pay for shipping from 12 different places .

*This I've done as well which is hard because there is always that one scent that my supplier doesn't carry so I have to spend a bit more to get it elsewhere.

2) Buy in larger bulk.
*Maybe when my sales are consistant I will do the same.

3) Gotten less uptight about packaging. I include a statement at my online venues that says "AFFORDABLE QUALITY: In order to always bring you quality items at affordable prices, exact containers may vary slightly."

*Me too I wanted to start using amber colored bottles but not right now. Simplified is the way to go and maximize those profits.

4) Always recycle packaging and added this statement "In order to cut costs as well as help out the enviornment, we will use recycled boxes and packing material whenever possible."

* I didn't think I needed to add this statement.

 

[Lindy]

1st year in business so profit is still something to be achieved......