How much income?

[anna1222]

Hi Everyone,

So, I'm thinking about entering the soap making biz. I have read SO much about it, what to expect, how to excel, etc. I'm curious though, how much can I realistically plan on making? I know it depends on so much, but in your experience, what should I expect?

Thanks for sharing!

 

[Becky]

I really don't think there is an answer to that question. As you pointed out, there are too many variables.

Some people make a good living out of this, some don't. Some make enough to support their hobby, some don't. There is no telling what you could expect to make.

 

[anna1222]

Yea, I thought so. Oh well, regardless of how much I actually bring in as a second income, I'm very excited to share my soap.

 

[Tabitha]

Unless you have a lot to invest when you start out, what you nake is going to go right back into it. Just being realistic.

If you look at the top ETSY soap sellers who sell 1000 items a year, break that down into 365 days a year & you have 2-3 sales a day, at $5.00 a bar= $10- 15.00 a day minus the cost of your supplies....

 

[mandolyn]

There's definitely a large initial investment. You have to test, test, test & that costs.

I've observed that those making a living at soapmaking are selling wholesale, doing classes & many are even selling supplies.

You're not going to make a living selling soap on etsy as it's over-saturated with soapmakers. I doubt very much if you will make a living selling at just a web site. Have you googled "handmade soap" recently?

I'm a mod on one of the largest yahoo soapmaking groups. We have 4 or 5 soapmakers joining every single day, & the majority of those are new soapmakers, & about 1/2 want to sell soap some day!!!

I've been selling for 2 years, & don't show a profit on my books yet. I've put everything I've made back into my business. In 2009, I paid for the 2010 HSMG Conference, because it's within driving distance, otherwise, I wouldn't have been able to attend.

This is not the best economy to be launching a business in, either.

I think most soapmakers just love making soap, & find themselves with too much of it. The next thought after "Wow! I have too much soap!!" is "Maybe I can sell it." LOL!

 

[AshleyR]

I've been in business for almost a year, and I'm definitely still in the red and will be for awhile yet. I've put approx. $15,000 into this so far.

 

[Lindy]

March is my one year anniversary and I did show a profit last year thanks to my December sales. To really be successful you need to have a realistic Business Plan and a good Martketing Plan if you want to be full-time.

 

[carebear]

March is my one year anniversary and I did show a profit last year thanks to my December sales. To really be successful you need to have a realistic Business Plan and a good Martketing Plan if you want to be full-time.

was that a profit just for money spent that year or compared to everything invested?

 

[Lindy]

I use Simply Accounting so all expenses go in there as well as all sales. Once the dust settled I actually made a small profit. Of course that's not paying me a wage or anything, but there was a small profit. I also spent every day in the mall basically from December 1st to Christmas and that's where I finally made some decent money. Sold out actually so I didn't even have enough inventory left to do Boxing Week....

Learned a lot in this first year and I know what changes I need to make including upping my wholesale activity. Prospecting like crazy right now and I'm starting to see some of that paying off as well......so we'll see what year 2 of business brings.....

 

[Bigmoose]

Learned a lot in this first year and I know what changes I need to make including upping my wholesale activity. Prospecting like crazy right now and I'm starting to see some of that paying off as well......so we'll see what year 2 of business brings.....

I wish you the best Lindy. We all know how hard you work at it. I agree with what you said 100%. I still have a full time job and even now with the slow time of year I don't have a spare minute. I am sure that at some point this year I will have to go into the office and at the least cut back to 2 or 3 days a week. I could not survive another Christmas season without it. I have about 6 mega shows booked for this summer and fall. I can't wait to do these.

Bruce

 

[bala]

I am in timber and computer system business in pass 15 years. To compare wtih soap selling total amount, I shall go away from soap business.

But, I love to sell soap mold and it makes me so enjoying in it just like make a wood craft.

I want to say that you may not make big deal in soap business but you must enjoy it to communicate with people and change everything by your mind and hands.

It won't be easy to count your income in soap business. Do you like your soap art?

 

[CiCi]

March is my one year anniversary and I did show a profit last year thanks to my December sales. To really be successful you need to have a realistic Business Plan and a good Martketing Plan if you want to be full-time.

That's how much I've put into it, too...and I haven't started to sell, yet. That cost is all from testing and building up what I need to even start to sell...packaging, oils, fragrances, etc. It gets really expensive.

 

[xyxoxy]

I have a lot of similar questions as in the other "Brick & Mortar" thread.

So is it safe to say that the majority of people who sell their B&B products also have some form of supplemental income...? If not, how do you eat and pay rent?

Does anyone "make a living" as a full time soaper even if that does include teaching and selling things other than actual soap? And I guess to the point of the OP... what KIND of a living once you have gotten past that large initial investment and have your head above water?

 

[Tabitha]

How much money do you need a week to live on? If the answer is $500.00, then you will need to sell between 250 and 500 bars a week. Will this be craft shows? farmers markets? If you plan to sell wholesale you will need to sell between 500 and 1000 bars a week to put $500 in your pocket. That's a lot of soap. I know of people who do it, but they are few & far between.

 

[carebear]

I use Simply Accounting so all expenses go in there as well as all sales. Once the dust settled I actually made a small profit. Of course that's not paying me a wage or anything, but there was a small profit. I also spent every day in the mall basically from December 1st to Christmas and that's where I finally made some decent money. Sold out actually so I didn't even have enough inventory left to do Boxing Week....

Learned a lot in this first year and I know what changes I need to make including upping my wholesale activity. Prospecting like crazy right now and I'm starting to see some of that paying off as well......so we'll see what year 2 of business brings.....

That's fantastic. But I might mention that a lot of people forget to include some costs in their calculations - supplies like paper towels, additional utilities cost, insurance, transportation, stuff like that is so easy to just roll into your personal expenses it's hard to see what they really cost.

good luck.

 

[IanT]

lol trust me I have seen her biz plan and it is in-depth to say the least... very well put together...

 

[madpiano]

It is not just the amount of products you need to sell a week, you need to MAKE it as well.

Soaping is a brilliant hobby. Will you still love that georgeous Lavender Patchouli soap in 3 months time when you have to make another stupid batch of it (your 5th that month) because that's all people ever buy ?? (just kidding here, I still love mine, lol)

And on top of it, how much time do you have to spend selling the let's say 500 items per week ? Will that leave you enough time to make more products when you get home, complete all the paperwork for them (believe me, paperwork is the worst part of the business), answer any emails, ship orders, cook dinner, clear your soaping equipment out of the kitchen and have a life left ? Oh, yes, quote some wholesale accounts and make some promotional material, keep the website updated (and Facebook and Twitter) and make sure you have enough stock on Etsy.....

So, then you get ot the point of having to employ people - if you are blessed like me, you have a teenager who attends business school and needs to do Product Design and Customer Care as homework. (win-win situation here, hehe), otherwise some of your profit will end up paying for someone else's holiday (you no longer have the time for one, so it shouldn't matter anyway).

Living of soaping is possible, but not small scale and not as a hobby. If you are single (mum or otherwise) it will be very very hard (that's why I am doing some temping work now) and it will eat up all of your savings and weekly food budget before even a small amount of profit (I made £10.00 after all costs last month!! - it went straight into a bottle of champagne as it was my first profit after 2 years) is seen. If you are living with someone else who can cover all houshold bills while you get started that would help immensly, as all of the above are just that much harder if trying to do them on top of a 9-5.

If anyone ever invents a 36hr day, please send them my way - I need those !!

 

[Lindy]

Ian thank you!

Carebear I am grateful to have had the professional guidance I got right at the start. By using an accounting program you can take all of the expenses into account including bankm charges, paypal fees etc. This year my focus is now moving into wholesale as well and keeping my retail as well. To do this I'm bringing in my business to business selling experience (check the current issue of Saponifier for the first article I wrote on how to do this) and calling on business in Western Canada to buy myt products for their stores to resell. I believe to make a true business out of this fantastic hobby you need to create a balance between wholesale and retail.

Cheers

 

[IanT]

Ian thank you!

Carebear I am grateful to have had the professional guidance I got right at the start. By using an accounting program you can take all of the expenses into account including bankm charges, paypal fees etc. This year my focus is now moving into wholesale as well and keeping my retail as well. To do this I'm bringing in my business to business selling experience (check the current issue of Saponifier for the first article I wrote on how to do this) and calling on business in Western Canada to buy myt products for their stores to resell. I believe to make a true business out of this fantastic hobby you need to create a balance between wholesale and retail.

Cheers

 

[cathym]

The important thing is to find a 'niche'. If you're lucky you can set up in your community at fairs and markets and establish a CONSISTENT presence. Even if you have competition if you have quality products and a friendly smile people will buy your soaps. Soon retailers who are looking for unique items will buy wholesale from you. This is how it starts. The PROBLEM is making enough for the demand. The higher the pile of soap the higher the sales. Last summer I set up at my Farmers Market and consistently sold 50-60 bars each Sat. @$5. I could have sold more but I ran out and had to quit in Aug. This year I have been working like crazy to have way more stock so we'll see how it goes! Once you work out the kinks I do believe there is money to be made. Don't get discouraged. Also, sorry this is so long but how do you find out about sales numbers on Etsy? I thought that was kept private. I personally don't think people will buy a $5 bar and pay $10 to have it shipped but an 'Etsy' presence is good for image and marketing.