Prices

[John Harris]

How do you calculate what you charge for a bar of soap? My bars weigh 6.5 ounces and I only charge $4 a bar. Does anyone charge a dollar and ounce, maybe?

 

[Misschief]

My bars are 100 grams and I charge $7.00 per bar or 3 for $20

 

[Cat&Oak]

That's a bargain for such a big bar of soap. ❤

I know I always put Kenna's stuff on here but I think she is really smart! This is a super article and I hope it helps you. Really you can charge whatever you want John.

https://www.modernsoapmaking.com/blog/knowing-real-cost-products

 

[CreativeWeirdo]

I would say, first figure out how much each bar costs in raw materials. Then go from there. I don't sell my soap, but I used to sell homemade jewelry. I would charge double my cost of supplies; more if it was something super intricate and took a lot of time. Sometimes I make custom costumes for friends and I charge them double the cost of supplies, firm. We go pick out fabric together, so they are well informed the whole time.

 

[The Efficacious Gentleman]

Full costs, including your time at your hourly rate * 2 for wholesale orders. Wholesale * 2 for retail. That is a pretty standard calculation for pricing, but can be tweaked -

If the price comes out at 5.03 per bar, 5 fits much better, or 4.97 also gets rounded to 5. And if your price is way below the standard price around, you night be paying yourself too little and can adjust the price up to match (undercutting the market is actually bad for everyone involved) and if it comes out too high then you need to look at lowing your costs - the most expensive part will be your time, so doubling your batch size reduces the cost per bar by a great deal.

That's a massive issue with people who are only selling to cover their costs rather than make a business of it - they often end up undercutting the market and can make properly priced soap seem expensive

 

[Vicki C]

Geography matters too. If I were in a different part of the US I would charge more. My bars are priced at $6, $7, or $8 depending on size (3.7 - 6 oz) and complexity. $4 for a 6.5 ounce bar seems very inexpensive.

 

[Babyshoes]

That's a massive issue with people who are only selling to cover their costs rather than make a business of it - they often end up undercutting the market and can make properly priced soap seem expensive

Yes, this is an issue for any hand crafted items, and is why it's awfully hard for people to make a living selling their handmade crafts. I generally suggest (when the topic comes up) that hobbyists charge (at the very least) materials costs plus minimum wage, and don't forget to charge for time spent photographing, selling, packaging etc, plus a little for water, electricity, rent and so on. They will probably still be cheaper than others, but likely in the right ballpark at least...

(If there is no minimum wage in your area, base it on the hourly rate you'd expect if working in a supermarket, or similar.)

 

[dibbles]

$4 seems low to me too for that size of a bar (Canadian or US both). Montreal is a big enough city that I would think people would be used to paying more for a small luxury item like handmade soap. If your plans going forward are to sell, as in have a business, I'd get more in the ballpark of what you hope to charge for your bars when that happens. If you know you don't want a business in the future, but want to sell to friends and coworkers to keep the soap from piling up price it at whatever feels right to you. I'd raise the price to $5 at least for a bar that big.

 

[Misschief]

I should add that I've been monitoring my costs (as one must do if one sells) and I know that I'll have to raise my prices next season. My COG (cost of goods) has gone up quite a bit this year. Unfortunately.

My bars are 100 grams and I charge $7.00 per bar or 3 for $20

 

[John Harris]

So! The soap show is over. Five people attended. I was selling at 5 for $20. I took in $380. Not bad. I was surprised to see people buying 20 and 25 bars of soap! (Christmas is coming.) And they certainly get excited over it! And, the host served wine! I had to pay my host, and my organizer, and the host's brother $20 each for their time and inconvenience. There were many requests for special orders - Peppermint Oatmeal, Lavender, Eucalyptus, Bay Laurel, to name a few. I really have to figure out how much it costs to produce a marketable bar of soap.

All in all, it was a nice way to spend a Sunday afternoon. And it was nice to move out some of the TON of soap I have sitting around in my basement.

 

[Ugeauxgirl]

Glad it went well. It cleared out your stash so you can make more soap, and now you have money for supplies. Win, Win! There was a small Christmas market in my small town this weekend. 3 vendors selling soap- 2 vendors selling soap for $10 a bar and 1 for $8.50 a bar

 

[John Harris]

$10 a bar! Must be a lot better soap than what I make! Someday...

 

[The Efficacious Gentleman]

Again, as to pricing - let's say that you made 1/4 of that 380, based on 2 x costs = wholesale, 2 x wholesale = retail = 95. Take from that the 60 paid to the three people, leaves you with 35 as pay for the day

 

[math ace]

The price is way too low. Our local Publix grocery is selling cold process soap with essential oils .... Cut into various loaves for around $1.70 ounce.

 

[math ace]

Did you calculate your costs before pricing the bars?

Did you shop the local craft venues to comparison price?

Have you priced what it's going to cost to make the same quantity again? The prices of everything has gone up this year. It will cost you more to make the next batch of soaps.

 

[Vicki C]

That’s great John! It’s $380 that you wouldn’t have had, and it is so much fun to see people be happy with your soap. You may decide to up your prices, but I appreciate your excitement! You must have terrific soap. Those customers will all be back.

 

[ResolvableOwl]

$10 a bar! Must be a lot better soap than what I make! Someday...

Double the amount of St. Joseph's oil … double the price … just my 4 cents.

Seriously, pricing is difficult, even (and particularly) when you don't do it for a living. Sell paintings? Chocolate? Invite to a small house concert? You don't want to get rich from it, but you also don't want to undercut those for whom it's their day job… You don't want simple, straightforward products to appear as if they were elitist luxury, but self-exploitation doesn't serve anybody either.

 

[lucycat]

Over the years I have had several customers purchase for an office for small Christmas gifts. The nicest part is that I usually hear from a few. Selling 30-35 bars to one person is a good way to get your name out because there will be lots of people who use your soap.

 

[John Harris]

Again, as to pricing - let's say that you made 1/4 of that 380, based on 2 x costs = wholesale, 2 x wholesale = retail = 95. Take from that the 60 paid to the three people, leaves you with 35 as pay for the day

Guess I won't quit my day job!

 

[The Efficacious Gentleman]

That’s great John! It’s $380 that you wouldn’t have had, and it is so much fun to see people be happy with your soap. You may decide to up your prices, but I appreciate your excitement! You must have terrific soap. Those customers will all be back.

I mean, he could have also not made so much soap and not spent the money on ingredients and the stand at the fair and saved the 380 to start with! But then I am one of those who think that if you're making too much soap to be able to use or reasonably give away, you can just make less soap instead of selling off soaps that you didn't make to sell