How do you calculate the selling price of your homemade soap?
How do you calculate the selling price of your homemade soap?"
This is a very good question, put simply, it really boils down to a comparison of the price of products currently in the market you wish to sell to and the cost to produce your soap. If you are considering soap making as a viable business, then you need it to be sustainable (pays completely for itself) and competitive (you can price your products near to, or lower than the competition).
This isn't a hard and fast rule, because if you come to market with a totally unique product that no-one else is selling and it proves popular, you can maintain higher prices while the market will bear it, but be aware that if another product comes to market in direct competition, you may have to reduce prices to remain competitive.
It also depends on how you plan to progress, if you make soap for a hobby and simply wish to sell your surplus soap to pay for the hobby and obtain a little pocket money, you would only have to calculate your batch price and mark it up by a small amount to match the price being asked for similar products in your market.
I have provided much more detail on pricing in my ebook Soap Making for Profit (http://soapbusinessguru.com).
More soon,
This is a very good question, put simply, it really boils down to a comparison of the price of products currently in the market you wish to sell to and the cost to produce your soap. If you are considering soap making as a viable business, then you need it to be sustainable (pays completely for itself) and competitive (you can price your products near to, or lower than the competition).
This isn't a hard and fast rule, because if you come to market with a totally unique product that no-one else is selling and it proves popular, you can maintain higher prices while the market will bear it, but be aware that if another product comes to market in direct competition, you may have to reduce prices to remain competitive.
It also depends on how you plan to progress, if you make soap for a hobby and simply wish to sell your surplus soap to pay for the hobby and obtain a little pocket money, you would only have to calculate your batch price and mark it up by a small amount to match the price being asked for similar products in your market.
I have provided much more detail on pricing in my ebook Soap Making for Profit (http://soapbusinessguru.com).
More soon,
Labels: Price, Profit, Soap Making
posted by Gary at
8:35 AM
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