Guest Soap in a Hotel

[z00100]

I've been approached by a local hotel to supply them with guest bars.

They claim that they would like around 1500 pieces a month. The size will be 1 oz.

First question..........

Although, it's a great chance to grow, it's also risky. What do you guys think?

Secondly, I don't think I'll be adding castor or tussah silk to this recipe. It won't be appreciated in a hotel environment.

What's the cheapest most basic recipe I can make?

I've done some calculations and things don't look good so far.

Any and all help is appreciated.

 

[judymoody]

First of all, congratulations!

Secondly, where's the risk? If they pay you up front or half up front and half on delivery, I don't see the downside here. Be sure to price accordingly - even though the bar is smaller the packaging and labor costs for small bars are probably similar to full size bars. You might also need to invest in a different cutter and that should be factored in too.

What's the price point per bar?

I would not make the cheapest recipe possible. This is an opportunity for your work to be seen by many, many people. You want to impress, no? Could result in future sales down the line.

That said, A well balanced bar of palm/coconut/olive with 5% castor and 5% butter of choice might be a good compromise between quality and price. I'd stick with veggie oils in case there are end users who don't use animal products. For that reason, I'd omit the silk too. And I'd pick a fragrance with broad appeal - maybe some sort of lavender or lavender herb blend or something citrusy.

 

[lsg]

First question, do you have insurance? If not then get some before supplying soap to a hotel chain. I wouldn't go for the cheapest recipe, but for one that would let me make a little profit and furnish plenty of name recognition. My daughter and I visited an inn at Sedona, AZ this summer. Although I make my own soap, I was enchanted by the design and fragrance of their guest soap. One of the first things I did when I got home was to look up the company that furnished the soap. Do your calculations before giving an estimate.

 

[AlchemyandAshes]

I'm not sure if things works the same legally in Bahrain as here in the US, but some things that come to mind:
Do you have business insurance? Are you set up as a business so that your personal assets aren't at risk in case of law suit?

How much is the hotel willing to pay per piece or in bulk? Can you keep up with the demand for the price they are willing to pay?

I will assume you would be using multi-cavity 1 oz molds to assure consistency?

Are you equipped to make 100lbs of soap a month?

Do you have a tried and true recipe that you know like the back of your hand that can be made consistently over and over with quality results?

If you're new to soapmaking, you really don't know what you're getting in to :shock:

I was approached in 2002 to make soap for a large vitamin and supplement company. They offered me 18-51 cents a bar for a 4 oz soap handmade with 4 essential oils - including Chamomile, none the less! - and colloidal oatmeal (it was a Melt & Pour glycerin base) packaged and wrapped by hand. Needless to say, I passed on that opportunity. It would have been a huge initial investment for a small time soaper at that time. There's no way I could have kept up with demand, especially at that price. And thankfully I didn't, because that company has terrible business ethic.

Just make sure you know your stuff, both soap and business, before you get in over your head.

 

[2lilboots]

I have stayed in different hotels across the US and when I use a soap bar that is luxurious or has a lovely scent I look them up as well. This could really broaden your business. I wouldn't make a lessor quality of soap just because they want a larger quantity of product.

 

[DWinMadison]

First question, do you have insurance? If not then get some before supplying soap to a hotel chain. I wouldn't go for the cheapest recipe, but for one that would let me make a little profit and furnish plenty of name recognition. My daughter and I visited an inn at Sedon, AZ this summer. Although I make my own soap, I was enchanted by the design and fragrance of their guest soap. One of the first things I did when I got home was to look up the company that furnished the soap. Do your calculations before giving an estimate.

My first thought exactly, and make sure to have a "hold harmless' clause in your contract and have them name you as an additional insured on their policy if possible.

 

[DWinMadison]

Insurance...

If you are making the soap out of your primary residence, you may be able to get business insurance as a rider on your home-owners policy. Also, do you have an LLC set up? If not, and you were to be sued over an alleged allergic reaction or something else related to the soap, you could put your home and personal assets at risk.

 

[Relle]

With the questions you are asking at the moment, I don't think you are ready to sell on either a small or large scale - you need to slow down and get all your information worked out before even attempting this.

 

[SoapAddict415]

Congratulations! Before I came across your post I was thinking that I'd like to supply a hotel chain with guest soaps one day. The other members have brought up some valuable points to consider. As far as an inexpensive recipe, maybe coconut oil, palm oil and soybean oil or rice bran oil for a hard, non-drying bar? Best of luck to you!

 

[AlchemyandAshes]

As far as an inexpensive recipe, maybe coconut oil, palm oil and soybean oil or rice bran oil for a hard, non-drying bar? Best of luck to you!

Definitely Not Soybean. Rancidity City!

 

[CaliChan]

I've been approached by a local hotel to supply them with guest bars.

They claim that they would like around 1500 pieces a month. The size will be 1 oz.

First question..........

Although, it's a great chance to grow, it's also risky. What do you guys think?

Secondly, I don't think I'll be adding castor or tussah silk to this recipe. It won't be appreciated in a hotel environment.

What's the cheapest most basic recipe I can make?

I've done some calculations and things don't look good so far.

Any and all help is appreciated.

Olive oil 50%
Coconut oil 76 deg 30%
Crisco (new) 20%

I've been doing a DIY blog for a while and i have named them "budget bars"
Because it only costs me 6.20 to make a 3 lb batch.
so that would make about 48 1 oz bars. for .12 c. each.

 

[melstan775]

blog address cali?

 

[Birdie Wife]

I was thinking about doing the same thing (just thinking) and I've just come off the phone with my friendly local business adviser. He says there's a soap maker in Orkney who has managed to get their soaps into virtually every hotel on the islands by offering guest bars at cost. The company details are included in the packaging, with the idea being that guests who use the soaps will be impressed enough to look for the supplier locally and buy full sized bars, then at a profit to the maker.

Something else to consider?

 

[paillo]

I was thinking about doing the same thing (just thinking) and I've just come off the phone with my friendly local business adviser. He says there's a soap maker in Orkney who has managed to get their soaps into virtually every hotel on the islands by offering guest bars at cost. The company details are included in the packaging, with the idea being that guests who use the soaps will be impressed enough to look for the supplier locally and buy full sized bars, then at a profit to the maker.

Something else to consider?

I've been contacted by a small boutique hotel who'd like to try my soaps in guest size. I'm going to do exactly that -- provide them at cost (free first batch or so, the hotel's small enough it will be an investment) with my company details and where to buy them locally. It's a high class hotel in a pricey town, and I think name recognition will really boost sales locally.

And agree on making a quality soap, don't take the shortcuts! I'm going to send some really pretty glycerine soaps along with my usual recipe of olive, coconut, palm, palm kernel, castor and shea butter in individual leaf and heart molds. And if I get motivated enough I'd like to approach some high-end bed-and-breakfasts with the same offer.

Eager to hear how it goes for you others who are doing or considering guest soap sales to hotels!

 

[Lindy]

I was thinking about doing the same thing (just thinking) and I've just come off the phone with my friendly local business adviser. He says there's a soap maker in Orkney who has managed to get their soaps into virtually every hotel on the islands by offering guest bars at cost. The company details are included in the packaging, with the idea being that guests who use the soaps will be impressed enough to look for the supplier locally and buy full sized bars, then at a profit to the maker.

Something else to consider?

I strongly recommend that you be making soap for a bit longer before looking at selling....

As for putting your soap in somewhere at cost why not work from the direction that your product is significantly better than the 10 cent bars they are currently procuring. As a business person it simply doesn't make sense to buy someone's business. I am in hotels including the Rosewood Hotel Georgia in Vancouver. I'm there because my product is world's away from what they normally have to offer. This is a very, very high end hotel and this is my market. You want to promote yourself as a quality producer where only the best will do. Also, and this may not mean anything to you, but you are representing our industry. Do we really want that representation to be bargain basement or exquisite? I opt for exquisite personally. Your mileage may vary....

 

[Clemmey]

As part of the "American Dream" people tend to think that hey I like to do this... lets make a business out of it. As a business/marketing teacher I want to warn you that many people then get burned out on what they love. If you love soap making... think twice about this opportunity... what will expanding look like and would you be willing to go that route. I wish you the best... just my 2c

 

[Lindy]

Cemney you are absolutely right! March 15th will be my 4 year anniversary of being in business and it has been a roller coaster. I've been in business before and I love being self-employed and I thought I was well prepared to do this. Well best laid plans and all that. I am finally at the point that I have a good idea of where I am going to go with this business. I kept getting distracted and getting a job to help finance things. In the end those jobs damaged my focus on the business. So now it is the business, plain and simple.

So a word to the wise. Loving soap and making it are not the same as being in business with it. You need to understand what being in business is really all about and remember that when you are in that craft fair, or you are trying to get in the door at a hotel, you represent every soapmaker, everywhere. You are our representative and I've seen people so desperate to sell their soap they undercut the market by 50% and simply don't care what they do to everyone else.

Okay off my soap box :silent:

 

[z00100]

Sorry for taking a long time replying.

I've had further meetings with the Hotel and this is what the crux of the story is:

They are getting a full kit (soap, shampoo, conditioner, lotion and body gel). They wanted the full kit from me but are willing just to get the soap.

Regarding actually doing the quantity, I can. I have the space and I have the time. That's not the issue. The biggest issue right now is that they are buying just the SOAP for 13 Cents USD. No matter what I have tried, I cannot get down to that price. Even with a single oil recipe. The only way I can get below that price is to calculate if I made close to 100,000 pieces a month. Which is not doable at all.

If they are buying a bar for 13 cents, then I would have to at least make a bar for 1/2 the cost for it to be worth it.

They have 5 chains and keep on telling me that they will expand to other branches once they are happy with my product.

The bar of soap is 25 Grams or .9 oz. That would be like .052 cents per gram. I just cannot come close to this price at all.

Any help would be appreciated.

I don't need Insurance in Bahrain. That just doesn't apply here. Worst case they will terminate the contract. But there is no legal liability issues in Bahrain.

 

[z00100]

Right now, I'm leaning towards not accepting this order.

My products have a standard that I cannot deviate from and coming down to their price point would mean that my product would have to be inferior. That's something that doesn't sit well with me

 

[melstan775]

You just need to tell them you can't meet their demand at the 13 cent price. Tell ten you would be taking a loss just to produce the product and you aren't able or willing to pay to supply them. Make an offer and see if they accept. If they don't then maybe it's not the right deal for you. It's a great opportunity but not likey to produce enough interest to cover your loss to supply them.