This breaks down to about $0.41 per ounce. For example, 1 pound of olive oil is $6.49. When you buy larger quantities of ingredients, the cost per pound/ounce is reduced. Mold - found using our Lye and Fragrance Calculators If we cut each batch into 3.8 ounce bars, we can get 20 bars from each batch. You need 2.5 ounces of Energy Fragrance Oil for a light/medium scent. Wood Mold, which holds 76 ounces of soap. The examples below use an easy cold process recipe with three oils, one scent, and one color.įor this example, we’re using the 5 lb. The direct cost of each batch varies because they have different ingredients. Giving the extras category of $70 a month means you can replace things that break or wear out.Įxtras (shelves, spoons, molds, postage, etc.) - $70 But since they last longer than one use, we think it makes more sense to put them in here.
If you prefer, you can factor the molds into the raw material cost (direct costs). In this case, we’ve also factored in molds. Learn more in the Insurance for Bath and Body Businesses article. On average, it runs about $20-40 per month. Let’s not forget insurance! This is an essential you should have before starting any soap business.
That means the costs may fluctuate quite a bit. They may also include costs that vary from month to month, like marketing materials, design work, and website maintenance. Some indirect costs occur on a monthly basis, like rent, phone, and water. Next, you have your phone/internet bill, heating, electric, water, sewer, and garbage. In this simple example, we’ll say renting a room is $200 (mortgage of $800 divided by 4). To get a true overhead cost for when you do get past the start-up phase, your company should be paying you rent (but for tax purposes, only if you’ve allocated a room solely for soap making). If you're like many small-scale soap makers, you work out of your own home or apartment. These are things like heat, electricity, phone bills, etc. While there’s no black and white guide for pricing, this article can help you get started.īefore we dive in, keep in mind these numbers are very simple and meant to give you a place to start. Choosing recipe ingredients, design, color, and fragrance is fun! Selling is where it gets confusing - specifically how much to charge for each bar of soap. For many makers, the creative aspects of running a small business come easy.
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