is 4$ a fair price?

[kaseencook]

He he, We are watching Star Trek right now! We got out season 6 of deep space nine, but the next generation was out favourite.

I totally agree about the farmers market. We don't have great markets in our area (they are all junk markets, so no one is really interested in crafts), but at least we got a lot of feedback and could really tell what people are and aren't interested in. Especially since online customers can't really experience soap - only through a picture.

 

[Jeremy]

Wow, can I ever get off topic.

Yeah, 4 bucks is fair for plain bars, try and charge a little more for fancy and see what happens, the ol' multi marketing works a charm, $5.00 for one, 2 for $8.00, and three for umpteen billion, errr, I mean $10.00
And let them choose differerent scents that way there is more chance the customer will find the one scent they just have to have in their tub and then you just created a repeat customer and everyone loves options and getting a bargain.
Oh, one thing I read that I think is smart, always give out your contact info with every bar sold so if the soap is given as a present there is the possibility of a new customer.
So to make a long story longer, yeah 4 bucks sounds fair.

 

[barefootbody]

I found this pretty good site on small business:

http://smallbiztrends.com/2008/01/top-e ... crets.html

◊ Scott Shane, Author of “Illusions of Entrepreneurship” – “The data show that most entrepreneurs compete on price, but doing this leads companies to perform worse. New companies are better off competing on service, quality or some other dimension.”

◊ Tim Berry, Planning Startups Stories – “One of the most expensive myths in marketing is that lower price produces higher volume. That might be true for coal or gasoline, but not for most businesses. Lower price means, well, ask yourself: do you always eat at the lowest price restaurant? Buy the lowest price clothes? Do you drive the lowest priced car? Pricing is your best statement of value.”


There's more on the site, I just thought this kind of fit with what Jeremy is saying.

 

[surf girl]

I have a small business, and my general philosophy is that I would prefer to charge more and work less than charge less and work more for the same amount of money. Not being run off your feet allows you to give a much better quality of service, and gives you a LIFE. When I am too busy, I figure it's time to put the prices up. The people who chose based on price can then go elsewhere (they have choices), and that is perfectly fine with me.

 

[barefootbody]

I think my quality is excellent, and I am not willing to cheapen it by selling it cheap.

 

[abigtroutt]

My wife and I sell our soaps at a farmers market and do very well. we sell our 3oz EO bars for $4 a bar and we cant keep it in stock. We were thinking about raising our prices but I dont know if the customers would or want to pay the increase. We buy in bulk and our cost per bar is now lower then when we started and we continue to find better prices on quality supplies. Its not a perfect but start with a business plan and be ready to make changes as you go. And the main thing in the business plan is you must make time and have fun with what your doing!!!

 

[Jeremy]

abigtrout, do you personally do the selling or does your wife do the frontman work. This is one of my concerns is when I start selling my soaps will the potential customers shy away from a guy selling?

 

[Jeremy]

Nah, I must have worded it wrong. Purely a business related question. I am fine representing our brand but if having me as a frontman takes even a dollar out of our pockets then my wife will want to be out front.
Here's the brass tacks of it all, I love making soap, finding new scent combinations and improving my game as I go and when I started making soap it was always with the idea of creating an eventual income from it.
So if my wife selling soap at the local flea market brings in 500 dollars per weekend and I bring in 300 dollars per weekend it's simple math to see which makes more sense and which will propel the business faster to the point of store frontage , wholesaleing and market branding.
I apologise if that question offended you but it's a real concern I have as to the perception of the buyer.

 

[Maria]

As a business person, I am more concerned about things I can control and one has no control over the perceptions of a buyer. Whoever is doing the selling should have a presentable appearance and be friendly and informative about the product. If the product fits what your target market is looking for, it is not going to matter who does the selling. My husband does just as well at selling as I do. Even better with hispanics as I do not speak spanish.

 

[honor435]

abigtrout, do you personally do the selling or does your wife do the frontman work. This is one of my concerns is when I start selling my soaps will the potential customers shy away from a guy selling?

before i started making my own, i bought from a farmers market from a man and woman, he was very knowlegable, i dont think it matters.

 

[barefootbody]

I think a male selling is more likely to attract other males to the product & I have found that a large portion of my business is from men.

 

[chainapa]

Fair Price

To determine a fair price you first need take all your costs to produce the bar including label or packaging. Then you need to see what your labor rate for yourself is, are you a $3.00, $5.00, $8.00 $10.00 per hour worker or do you work for free, add these costs and divide by the number of bars your producing in that specific batch by your costs including any waste.
Now making a profit margin above that is totally up to you.
You can’t judge what other people charge because some crafters by in bulk with larger discounts. Do a little research on what other soap crafters sell there soap for in you local area and take the weight of the bar into your comparison.
Chainapa
OH Soaps.com

 

[Jeremy]

Thanks everyone, your opinions really help.