The Impulse to Sell Your Soap
If the thought, “I could make some money doing this,” has gone through your mind, you are not alone. Innumerable soapmakers have had this exact thought. You shouldn't be afraid of money, nor should you let desire for it overwhelm you. Your labor, ideas, creativity, and time went into your soap, and you can charge a buyer a price that is representative of that energy.
Calculating Price
You can roughly calculate the amount you should charge by doubling the cost of your materials and adding in your labor. This is a very rough, working calculation for friends and relations. A “family” price, perhaps.
Go back to your records and figure out how much it costs in materials to make the soap. You can easily figure the materials by going through and calculating the price per ounce and how many ounces in a batch and divide by how many ounces in a bar. Double that for a base price.
Then, you need to calculate in the cost of the wrapping and decorating. How much did the paper cigar band cost? How much did you pay for the glitter pen you used to make the tag? How much gas money did you spend on gathering all the materials and gear?
Another way to set a rough price is to comparison shop. How much does a bar of handmade soap cost at the health food store, online, or at a boutique? You can figure your novice work is worth less than the master soapers' work from the store.
You are making soap at a time when there are thousands of hobbyist soapmakers thinking exactly what you are thinking. Join the trade organizations, research other companies, and seek out mentors. A few hours of a small business consultant's paid expert time can save you months, even years, of trouble.
However you decide to set the price of your first little sales, the bottom line is to be fair to the buyer and yourself. You need to make back your costs, earn a small profit, and set a price that is appealing and friendly.
The Excitement Money Can Cause
Getting some money in return for a bar of your soap is an exciting feeling. You start calculating in your head and wonder if you can actually make money from doing something you really enjoy! But don't get carried away counting soap bars before they're sold. There are so many factors, and you really need to be smart.
For a while, just sock your soap money away to recoup what you spend on supplies. Then make a little soap kitty where you save up your earnings and spend it on more supplies and equipment. If you carry on in this way, you'll have plenty of time to research your market, what people like, what you like to make, and how much it costs.
