Selling Soap....

[Pug Mom]

I have been making soap for about 6 months now. People have been urging me to seel my soap, and I have been resisting. I wanted to keep it fun and not have it be a job... But I think I can make it fun while making some money. I am well aware that I am months away from selling a single bar, but I want to start deciding what my standard line of soap is going to be and getting the recipes down. I plan on giving it away for months while listening to feed back. I have a few questions...

1) Do you have to register your name or can you just google it and if no one appears to be using it just start to use it. (I already have a name in mind.)

2) Have you found that soaps with animal products don't sell well? I love using lard in my soap, but I am afraid people will see the ingredient list and and not buy it.

3) How many years did you sell soap for before you realized a profit and had to pay taxes on your soap selling? I figure at least 3, but was wondering if that was reasonable.

4)What have been your best selling scents? I was thinking Peppermint, Lemongrass, Lavender, and Patchouli to start, with seasonal scents different times of the year.

Is there anything else I should think about that caught you by surprise? My niece's friend does web design, so she will be designing my site. When I am ready to buy I was planning on having a Soap Open Huse at my home, with door prizes and discounts for bringing friends and stuff... I am pretty excited, but I want to take it all very slow to mke sure I have a consistent product that people enjoy...

 

[AshleyR]

Hey there!

I have the same goal in mind as you. I would eventually like to sell my soap and have spent almost the last year preparing myself to do it. I have some good recipes that I'm happy with now, and am just determining what scents that people like and buy (and getting enough money to start making loads of soap!)

One thing I've learned in my "research" lately, is that everyone likes something different. I too thought I had to pare my soaps down to one certain type - I thought I'd do better if I focused on a certain kind of soap - for example: vegan, cp with synthetic additives like FO's or "mostly natural" cp, fun soap (for kids, some funky m&p), etc. etc. I've realized that people like all of those things! I think it is important to have a little bit of everything so you appeal to all kinds of people when you sell.

As far as the business name goes, I don't think you NEED to register your name right away, but you do want to check if anyone else is using it (in Canada you can do a search for $8 on the gov't website). Once you're sure about your name you will want to register it a little later on to be sure nobody else snatches it up.

You will also need to look into getting insurance, which can be very pricy and may change your mind about going into business. You need to be sure you can make money off your soaps in order to drop the $600+ it is costing people for insurance for their soap businesses.

Anyway, hope this helps! Hopefully some other people who are already in business will come along with some advice! You may want to post in the "General Business" forum to get some more advice on this!

 

[honor435]

I have been making soap for about 6 months now. People have been urging me to seel my soap, and I have been resisting. I wanted to keep it fun and not have it be a job... But I think I can make it fun while making some money. I am well aware that I am months away from selling a single bar, but I want to start deciding what my standard line of soap is going to be and getting the recipes down. I plan on giving it away for months while listening to feed back. I have a few questions...

1) Do you have to register your name or can you just google it and if no one appears to be using it just start to use it. (I already have a name in mind.)

2) Have you found that soaps with animal products don't sell well? I love using lard in my soap, but I am afraid people will see the ingredient list and and not buy it.

3) How many years did you sell soap for before you realized a profit and had to pay taxes on your soap selling? I figure at least 3, but was wondering if that was reasonable.

4)What have been your best selling scents? I was thinking Peppermint, Lemongrass, Lavender, and Patchouli to start, with seasonal scents different times of the year.

Is there anything else I should think about that caught you by surprise? My niece's friend does web design, so she will be designing my site. When I am ready to buy I was planning on having a Soap Open Huse at my home, with door prizes and discounts for bringing friends and stuff... I am pretty excited, but I want to take it all very slow to mke sure I have a consistent product that people enjoy...

I sell my soap, just work friends . for now.
I use olive, palm and coconut mostly, I dont know if people would mind shortening, as long as its veg. short., people may be opposed to animal fat?
I have sold over 150$, just to friends and co-workers.
Smells, hmmm. people love cherry almond, sandalwwod, ginger pear, not rose, not jasmine(at least my people). Are you going to use eo or other fo? Lemongrass people liked, i havent made lavender ,yet!
How are you going to package? I like organza bags or ribbon.
Good luck to you.

 

[Lindy]

I am just setting up my "official" business, but what I have found is that people are far less sensitive about tallow and lard than we think. I have found that there are of course the vegans who want nothing animal - those who like pretty - those that like natural scents like coffee, chocolate, honey, etc. - those who like scents such as flowers, spices, so these would include your FO's - there are those who want Castille & Bastille without anything in it & then there are those that want fun, funky & playful. The trick is finding the right mix for your area. That one I won't be able to answer for at least another year......

HTH

 

[Pug Mom]

Thanks guys! Yes, I am aware I need insurance (I don't want someone with sensitive skin owning my house! ) Before I sell a single bar I will be insured to do so...

I plan on using EO's to keep the natural ingredients going, with some special FO's mixed in (and clearly marked). I want to keep it simple to start, 4 or 5 standard soaps with different seasonal scents.

Interesting that lard and tallow doesn't turn people off. I can remember as a kid my mom buying soap at a craft fair and I refused to even try it once she told me there was animal fat in it...

I have figured out a name, and I have googled it and nothing even close comes up So that's a good thing...

I don't plan on paying my mortgage with this. I would like to offset a little of the $$ of my new addiction though while still keeping my family using my homemade soap for free.... I have 3 sisters that all have families and my parents, so that is a lot of people to keep clean with my soap!!

 

[ChrissyB]

99% of the soap in the supermarket that is commercially made is made with tallow - sodium tallowate is it's saponified form. That doesn't seem to put people off buying commercial soap. They use that because it's cheap, then they cover it with a heap of cheap perfume.
Having said that, I have made soap with tallow and it came out lovely, one of the best soaps that I have made, I made it with tea tree and lavender for my sons skin. I forgot about it, then refound it, so it had been curing for about 4 months, it was so nice I wish I made more.
I try to be a bit more of a vegie burger now though.
Good luck to you Pug Mum, I hope you are successful in all your endeavours...and you too Ashley, and Lindy, and Honor.

 

[Drex]

1) Do you have to register your name or can you just google it and if no one appears to be using it just start to use it. (I already have a name in mind.)

You can check with the state attorney general about getting a trade name.

For a website you can visit http://www.networksolutions.com/ and do a name search. If your name is available get it even if you will not be using it soon. People buy and sell names and try to turn a profit doing it. If you lose the name and try to buy it from one of these name resellers be prepared for them to throw outlandish price quotes at you.

2) Have you found that soaps with animal products don't sell well? I love using lard in my soap, but I am afraid people will see the ingredient list and and not buy it.

This depends on how you go about explaining what you use and how you manufacture. Do not high light or put much emphasis on it if you feel people may be offended.

I do not see anyone really making much of fuss about it. Many products used daily have some animal byproduct in them or used in some part of the manufacturing process.

3) How many years did you sell soap for before you realized a profit and had to pay taxes on your soap selling? I figure at least 3, but was wondering if that was reasonable.

Do cost analysis and survey customers for what they like. Focus on what cost you little but gives you the greatest profit. Use the customer input to direct this pursuit in the proper direction.

When you turn a profit on initial investment really depends on how you approach business. If you approach business as a hobby you may never recoup cost.

Business plan. Some people make a big deal about these being a hassle. With a business plan you will have direction and set expectations. Something you can always look at and it will get you back on track.

4)What have been your best selling scents? I was thinking Peppermint, Lemongrass, Lavender, and Patchouli to start, with seasonal scents different times of the year.

Many sites have a top 20 selling EO list. That I would assume is a good indicator. I really feel though what sells well for me or someone else may not sell that well for you or the next person.

Ask customers. Take return buying customers you have and give them free samples of test products and get feedback. This would be the best method. It also builds customer relations.

 

[Drex]

About taxes. Check with your state. Some states require taxes to be collected as soon as you start doing business and making transactions.

It maybe possible to classify your business as a hobby and avoid collect taxes. Again you need to check with your state and dept. of taxation about options.

 

[Pug Mom]

About taxes. Check with your state. Some states require taxes to be collected as soon as you start doing business and making transactions.

It maybe possible to classify your business as a hobby and avoid collect taxes. Again you need to check with your state and dept. of taxation about options.

I live in New Hampshire, no income tax, no sales tax. Live Free Or Die baby!!

 

[andreabadgley]

My biggest piece of advice (based on experience, believe me), is to PLAN your business BEFORE you go into business. I had this idyllic vision of "just selling soaps to fund my habit," but selling enough soap to fund my habit meant running a full-fledged business. Which is way more involved than just selling some soaps here and there.

If you're going to have a product lne, you have to constantly be on top of your supplies to make sure you've got enough whenever you need them, you've got to keep on top of your soap inventory, especially with CP, to make sure that you're making them in time to replenish your stock when it sells out, you've got insurance, taxes, keeping track of accounting/supplies/inventory/sales/customers, designing labels, figuring out packaging. And then there's the website design, photographing soaps for the website, updating the website, etc. If you've run a business before, this will all be old news to you, but for me I desperately wish that I had worked all this stuff out before I started selling. I'm constantly learning as I go, and I'm spending so much time running the business, I don't have time to work on my business plan so that I can have a better idea of how to set prices, when to order supplies, when to make soaps, how much soap I need to sell and at what price to profit, blah blah blah.

Don't get me wrong - I'm thrilled that I'm busy selling soaps because it means my business is doing well. It was just a huge surprise to me that the business end of things would totally dwarf the actual soapmaking. I don't think it would have been that way had I planned better. If you've never done a business plan, I have found the SCORE website to be really helpful for providing templates: http://www.score.org/business_toolbox.html.

Good luck to you, and kudos on taking it slow. I think you'll be glad you did.

 

[Lindy]

That's a good template for the Business Plan as well as the projections.

I just finished my Business Plan and it was a really good experience because it made me look at everything I am going to be selling including wholesale, retail, contract etc. It was a lot of work but well worth the effort. I now have a road map on how my business should grow. For anyone going into business, even part-time I would recommend it. This documents is more for yourself than it is for anyone else even though it is what the banks want if you are looking for funding.

Cheers
Lindy

 

[Drex]

http://www.sba.gov/

SCORE is linked from there also.

Your state also probably has a small business development center. Take advantage of all the resources you can.

My biggest piece of advice (based on experience, believe me), is to PLAN your business BEFORE you go into business. I had this idyllic vision of "just selling soaps to fund my habit," but selling enough soap to fund my habit meant running a full-fledged business. Which is way more involved than just selling some soaps here and there.

I agree completely. Though I have never sold soap. I have tried to turn hobbies into business. My first attempt failed.

If you're going to have a product lne, you have to constantly be on top of your supplies to make sure you've got enough whenever you need them, you've got to keep on top of your soap inventory, especially with CP, to make sure that you're making them in time to replenish your stock when it sells out, you've got insurance, taxes, keeping track of accounting/supplies/inventory/sales/customers, designing labels, figuring out packaging. And then there's the website design, photographing soaps for the website, updating the website, etc. If you've run a business before, this will all be old news to you, but for me I desperately wish that I had worked all this stuff out before I started selling. I'm constantly learning as I go, and I'm spending so much time running the business, I don't have time to work on my business plan so that I can have a better idea of how to set prices, when to order supplies, when to make soaps, how much soap I need to sell and at what price to profit, blah blah blah.

Many things can be out sourced. Like finding a web design student to do web work for resume material. Photography students who want to build resumes also. You can barter product for services or some will just be happy with a letter of recommendation.

Mainly though you need to know your objectives and have a firm plan on how to achieve them. As andreabadgley points out many things need to considered and thought out.

No sales tax... You are lucky.