Guest Soap in a Hotel

[z00100]

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.

That's exactly what I'm going to do.

I just want to wait for a bit and run some scenarios on my excel sheet and see if I can do something that is at the lower end of my quality spectrum. But still within my quality band.

Thanks!

 

[green soap]

I could not do it for that much either. Heck, I could not do it for four times that much.

 

[Lilahblossom]

Ya I would give them a price and if they don't want it fine. They don't want the highest quality handmade soaps for their guests. Plain and simple.

 

[Mandarin]

I have been selling to hotels and inns for many years. My name is not on the label and this is fine with me. I have been selling for 15 years and I am well past the point of my ego getting in the way of making money. My goal has always been to make a decent living from this business with a high quality product. I get my name out with my full size products and that is fine with me. I am in extremely upscale inns, as well as in just simple places. My soap ingredients vary from client to client. The best piece of advice that I can give you is to stand your ground and not sell your product for any less than it is worth. Provide a high quality product at a reasonable price. Don't you dare give it away...

 

[Lindy]

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.

Why do you feel you need to match the price of a detergent bar? Your soap is worth more and therefore if they want it they need to pay more. The least expensive I will sell mine (at 1500 + order) is 75 cents and they will buy them because they know they are getting quality. If the hotels want better than they have been getting they will pay for quality.

 

[becca757]

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!

I've been wondering about getting my soaps into the hotels in my area as well but I don't have slightest clue. Would it be okay to ask for suggestions? Thank you!

 

[becca757]

Why do you feel you need to match the price of a detergent bar? Your soap is worth more and therefore if they want it they need to pay more. The least expensive I will sell mine (at 1500 + order) is 75 cents and they will buy them because they know they are getting quality. If the hotels want better than they have been getting they will pay for quality.

I agree!! I'm fairly new at soap making and just reading about that hotel's offer made me feel cheap! I would never go that low.

 

[Candybee]

The price they are negotiating doesn't sound realistic to me. Sounds to me like they have not purchased handmade soap before-- guest size or not. Even a 1oz bar I would sell for .75 cents at wholesale.

I remember when I first started selling to B&B's and could not find a way to make them any cheaper without compromising quality. So I decided to set my price to what I knew they were worth and stuck to my guns about it. They accepted.