I won't be rich anytime soon

[Guest]

I believe I am a month or so into soap making. I have 44 sale-able bars downstairs. I've given away and used a ton. I love making soap but gawd will I be the crazy cat lady soon.

If I sold every bar for $5, I'd have $220, thats my cell phone bill. I know I can boost my profit by buying wholesale logs and selling them along with my product.

Will I forever be a childcare provider longing to be a starving artisan?

 

[kathrynit4]

Good question - I'd like to here the answers too

I am also just starting soap making as a business venture.
My plan is to go to farmers markets and craft fairs, at least to start with. Eventually I'd love to have people coming to me (physically and through a web site) asking for my product.
I'd love to here other's experiences seeing as I'm just making this up as I go along!
So many questions and no time to look them all up!!
I'm not even buying my raw materials wholesale yet... that must be a recipe for disaster.
Looking forward to more on this thread.
Kathy

 

[honor435]

I also would like to do some craft fairs, how do i start? tax id #? crafters insurance? I have about 90-100 bars made now, i have small fairs at work, but kinda burning out that market.

 

[Guest]

Phillysoaps.... it depends on whether you are selling 44 bars over the course of a month or over the course of a week. Building a customer base and getting repeat business is what you want to do. This, of course, depends on how you are marketing and selling your soap -- which is just as important as making the soap itself.

 

[mandolyn]

1. Do you have insurance?
2. How old is your oldest bar of soap? A year old, less than 6 months?

I ask #1, because what if someone has an allergic reaction to your soap & decides to sue you? It happens more than you realise. Even if you know you're not in the wrong, you'll have to appear in court with an attorney & that costs. Might as well have the insurance company's attorney deal with it. They know what they're doing.

Some craft fairs require you have insurance, or they charge you an extra fee so you're covered at the fair. I'm in one this summer that requires insurance. It was an extra $25 without it. It's a HUGE event, & one I didn't want to miss.

I ask #2, because if your soap isn't older than 6 months, you have no idea what it's going to be like in 8 months or a year from now. Some people buy soap as gifts, they wait for the giving (maybe months,) then the recipient says, "Oh how pretty!" & sits the soap in a dish not to be used, but to be looked at for several months, or puts it into a drawer & forgets about it for 6 months. Do you know what your soap will be like? Will it develop DOS or go rancid?

To sell in most states, you have to charge sales tax, so you'll need a tax ID. You need to check with your state, county & city to see if you need any permits or licenses.

I encourage soapers who want to sell to register as an LLC or Corp, so if you get sued, they can't touch your personal property.

Do you have & can you use accounting software? You need to keep track of customers, orders, supplies, sales tax, etc. It's just easier to have it all in one place.

You might want to throw in working on a business plan in there someplace. LOL

OK, but first what do you consider as "saleable bars of soap"? You've been soaping one month? How old is the soap? If it's only one month old, & you've only been soaping one month, tell me what that soap's going to be like in 6 months, 12 month or more.

 

[Deda]

1. Do you have insurance?
2. How old is your oldest bar of soap? A year old, less than 6 months?

I ask #1, because what if someone has an allergic reaction to your soap & decides to sue you? It happens more than you realise. Even if you know you're not in the wrong, you'll have to appear in court with an attorney & that costs. Might as well have the insurance company's attorney deal with it. They know what they're doing.

Some craft fairs require you have insurance, or they charge you an extra fee so you're covered at the fair. I'm in one this summer that requires insurance. It was an extra $25 without it. It's a HUGE event, & one I didn't want to miss.

I ask #2, because if your soap isn't older than 6 months, you have no idea what it's going to be like in 8 months or a year from now. Some people buy soap as gifts, they wait for the giving (maybe months,) then the recipient says, "Oh how pretty!" & sits the soap in a dish not to be used, but to be looked at for several months, or puts it into a drawer & forgets about it for 6 months. Do you know what your soap will be like? Will it develop DOS or go rancid?

To sell in most states, you have to charge sales tax, so you'll need a tax ID. You need to check with your state, county & city to see if you need any permits or licenses.

I encourage soapers who want to sell to register as an LLC or Corp, so if you get sued, they can't touch your personal property.

Do you have & can you use accounting software? You need to keep track of customers, orders, supplies, sales tax, etc. It's just easier to have it all in one place.

You might want to throw in working on a business plan in there someplace. LOL

OK, but first what do you consider as "saleable bars of soap"? You've been soaping one month? How old is the soap? If it's only one month old, & you've only been soaping one month, tell me what that soap's going to be like in 6 months, 12 month or more.

What she said. It's important to know what your soap is like in 6 months, even better a year out.

 

[heyjude]

Lots of good info. I've only been making soap for a few months and people who have tried my bars have wanted to buy some. I am so flattered that I give out a free bar to anyone who has asked!

I would be too afraid to sell without insurance and despite the positive feedback (after all some of them are my friends) I feel I have ALOT to learn before I would even consider selling it anywhere.

That being said, what if I put out a few bars of soap at work and made them available for free, but if someone wanted to make a small donation to defray my costs they could. I know it's a bit of a fine line, but boy are some of these supplies expensive!

Jude

 

[mandolyn]

Quote>Lots of good info. I've only been making soap for a few months and people who have tried my bars have wanted to buy some. I am so flattered that I give out a free bar to anyone who has asked!

I would be too afraid to sell without insurance and despite the positive feedback (after all some of them are my friends) I feel I have ALOT to learn before I would even consider selling it anywhere.

That being said, what if I put out a few bars of soap at work and made them available for free, but if someone wanted to make a small donation to defray my costs they could. I know it's a bit of a fine line, but boy are some of these supplies expensive! Smile

Jude<End Quote

Well, you'd then have to prove your non-profit status in order to avoid charging & paying sales tax. How else could you accept a free-will donation without it being taxable? There's still a product & money changing hands = a sale of merchandise = taxable.

 

[heyjude]

Hmmm..... sounds like much too much to go through to save some money. I look upon my soapmaking adventure as a hobby and I suppose the cost of soapmaking is small potatoes compared other hobbies I could have like restoring antique cars or collecting art masterpieces!!

Thanks for the advice.

Jude

 

[Guest]

much of my cp is not even cured yet. My hp, I don't use for a week, I guess I was looking at this box of 44 bars and commiserating...

 

[heyjude]

On the bright side..... I bet your house smells great!!!

Jude

 

[Guest]

On the bright side..... I bet your house smells great!!!

Jude

It does grapefruit, geranium and sweet almond icing

 

[Guest]

I don't know if any soap makers get truly rich selling soap , if they do they are few and far between.
I want to sell my soap because I love making soap and believe it is far superior to store bought stuff.
I just do what I love and love what I do.

Kitn

 

[Maria]

It is not that hard to build up enough sales at local markets that will keep you pretty busy. I started out making CP soap also but there was no way I could keep up with the demand. I had soap all over my house curing and people didn't want to wait weeks for scents they had requested. I switched to HP and put the soap in one room on a giant baker's rack which took up a lot less space.
When people go into this they seem to be concerned about demand for their product. The real issue is supply. It was harder than I expected to make large quantities of soap, print labels and wrap them to sell. It would have been less stressful if I wasn't already running a business fulltime of course.
You definitely need a business plan of some kind and it is important to get good advice on how to set up the business structure to protect your assets.

 

[heartsong]

x

i look at it this way...it's a hobby that got out of control! LOL!

after making and selling soaps for a little over 11 years i've seen a lot of "feast or famine" times. the key is to stay creative and flexible.

what worked in one region of the country may not work in another. also you have to look at how much time and money you have to invest and begin a business strategy.

come up with a idea (concpt) and make it yours.

 

[Dixie]

If I can break even I'm a happy soaper! lol

 

[Jeremy]

I`ve been soaping now for quite a few months and am just now starting to know that I make good soap. And what makes one soap better for one application over another. I have been giving my soap away from the beginning and am just now starting to have people ask for more. I guess that`s a good barometer of the quality of your soaps. I intended to market soap a lot sooner than this but as all the longtimers will tell you there is defiantely a learning curve.

 

[jarvan]

Fear of retribution/litigation in today's society would definitely keep me from selling my wares. I am too much of a newbie to be able to spit out the whys and wherefores of the soapmaking process and product. I would consider myself nothing less than negligent if I couldn't do at least that when asked questions about my soap. I am learning every day.

I respect and admire those who do make a business of selling soap and are successful at it. I will continue to buy others creations while concocting my own.

This is the most expensive hobby I have every endeavored into, but a lot of it is start-up and my idiocy in ordering online!

For someone who is entertained by immediate gratification, soaping has really challenged me. It's like therapy to make me a more patient person.

 

[kathrynit4]

"I don't know if any soap makers get truly rich selling soap , if they do they are few and far between.
I want to sell my soap because I love making soap and believe it is far superior to store bought stuff.
I just do what I love and love what I do."

I appreciate the above comment and feel the same... but sure would like to get paid to do what I love instead of working at what I don't!
I'm in Canada and here, Farmer's market sales are not subject to taxes. A blanket type Insurance is covered by the market organization, but individuals are on there own if it's their product which causes trouble.

I still think that getting a tax number would be important for private sales and also to be able to buy product at wholesale costs.

I had no idea about the shelf life of CP soap being in question. I've been making soap about seven years, but only for myself and family, and I bet it hasn't sat around long enough for a true test!
Better look into HP.

This is a very helpful discussion.
Kathy

 

[ChrissyB]

I think that it would be downright irresponsible to sell any soap if you have only been making soap for one month.
JMO