Pricing?

[SunshineGirl]

I dont make CP soaps. so im not sure of pricing. but i was at a weekly farmers market. There is a goat milk soap stand. they are the only soap stand there. but the question is is 9$ to high for a bar of soap? to me i thought it was high and felt that since they are the only one there they are selling on the high side. I make MP soaps so im not sure if thats to high but i know as a MP soap maker i wouldn't sell a bar at that price.

 

[shunt2011]

It totally depends on the market. If she's selling for 9.00 I'm guessing she feels it's a doable price. I could never sell for that price where I live.

 

[TeresaT]

Way too high. How big/heavy is the bar? The average that I've seen at markets, online and specialty stores is $5.00 - $7.00 for a 4 to 5 oz bar. Unless that $9 bar was huge (and able to be cut in half), there's no way I would buy it.

 

[Teahouse]

I think it has to do with how high the quality ingredients the soaper used to make the soap as well as the time it took to package it to sell. Also, buying a spot/table to sell the soap isn't a pretty penny, so i guess that was why the soap was marked that high so that it could make up for some of the loss. There is a great calculator someone had made (i think its from the website soaping101) that calculates how much you should charge a person when you sell the soap.

To you it might be too high, but from the perspective of the soap maker, its not due to ingredients used.

please feel free to correct me if i am wrong

 

[Relle]

I think its too high, but if customers are willing to pay it, then its not. They must have a market at that price or they wouldn't be there or won't be in the future.

 

[SunshineGirl]

Thanks for your comments. they are average size bars. not saying it not high quality ingredients but most supplies i feel he can get locally. i live in the country so i know the goats milk is either from his goats or from a local farm. but then again we live next to the worlds largest retirement community. so to them 9$ a bar is something to brag about lol.

 

[cmzaha]

I think it has to do with how high the quality ingredients the soaper used to make the soap as well as the time it took to package it to sell. Also, buying a spot/table to sell the soap isn't a pretty penny, so i guess that was why the soap was marked that high so that it could make up for some of the loss. There is a great calculator someone had made (i think its from the website soaping101) that calculates how much you should charge a person when you sell the soap.

To you it might be too high, but from the perspective of the soap maker, its not due to ingredients used.

please feel free to correct me if i am wrong

I use high quality oils, tallows, lard etc and sell 5.5-6oz bars for 7.00. At least in my area, customers at farmer markets usually will not pay more for exotic oil soaps. I have a few specialty face soaps with argan, pearl powder, extracts etc for the same price but an oz smaller bar. They will usually bypass them for my regular size bars. Packaging I find, will not warrant a higher price either. In my area $7.00 is the upper end of price for a bar of soap, unless buying at Whole Foods...

 

[The Efficacious Gentleman]

I think its too high, but if customers are willing to pay it, then its not. They must have a market at that price or they wouldn't be there or won't be in the future.

This! It's only too high if the customers say so.

Could it be sold for less? Is the seller overcharging? Very likely - bulk buying even quality ingredients would lower the cost to make it. Using less fancy-pants packaging would reduce the costs there.

But if people buy it............

 

[navigator9]

Yes....if people will pay that much, it's not too much. But at that price, how many bars will people buy? I'd rather sell for less, have people buy more soap, and feel that they can use it every day, every time they wash. If I paid that much for soap, I'd probably use it only to wash my face, and use it sparingly. But if you're selling to people that can afford that much for a bar, and are willing to pay it.....more power to ya!

 

[Jstar]

I'd rather sell for less, have people buy more soap, and feel that they can use it every day, every time they wash

That would be my thinking as well..I'd rather keep a customer coming back regularly than one that comes back once a year

If I paid that much for soap, I'd probably use it only to wash my face, and use it sparingly.

No doubt...and it may just be my way of thinking, but something that expensive had better have gold in it or be HUGE..and I wouldn't share it wiff nobody haha

 

[tbeck3579]

Pricing is like housing, or even the price of gas at the pump. It costs more to do business in major metro areas, and a lot more to rent or buy. A one bedroom rat hole for 2k if you live in NY or Beverly Hills; where I live a 2k monthly mortgage will buy you the nicest home with acreage and barns. Where I live, people are still getting dollar deals and wouldn't dream of paying 10 bucks for soap. In S. Cal people don't think twice about paying 10 bucks for a bar of Chanel 5 soap at Macy's, or a "yuppyized" soap with organic ingredients at Whole Foods or the Farmer's Market.

 

[vmakkers]

After looking around on Etsy, it seems like $9 isn't too far off depending on ingredients and what not. I know people who are willing to pay $10+ for 6oz of soap if it's pretty or cute enough. I remember running into someone at the local soap supply place and she was asking advise from the owner on how to price her soaps. The owner said generally between $1-1.50 per oz and then add 50 cents per enhancement like fragrance oil and color so $9 could be reasonable based on that pricing model especially if you factor in the cost of shipping and things like that on Etsy. Some people maybe willing to pay the $9 for instant gratification.

 

[The Efficacious Gentleman]

I see pricing as a mix of two things - first, the standard formula of costs x 2 = wholesale. Wholesale x 2 = retail. The second part is a slight adjustment based on the area:

If that formula gives you a value under the market value in your area, you can increase it a touch and increase profits. It would also be a sign to recheck that you are including all the costs, if you are a lot cheaper than other people near you.

If the value that you calculate is more than people will be willing to pay, you need to reduce your costs. The best way is to increase your batch size as one of the biggest costs is your time. A 100 bar loaf does not need 10x more time than a 10 bar loaf, so your cost per bar is reduced by making more in one go.

Just looking at the local pricing and matching without first looking at this standard formula means you could well be missing out on an important piece of information