pricing Archives - Soap Queen

For many small business owners, the creative aspects of running your own business come easy. If you’re a soapmaker, choosing the ingredients, design, color and fragrance of products is fun! But after your products are created, it’s time to sell. This is when small business owners must decide how much to charge for the product, and that can be a little confusing. It’s important to understand there is no black and white guide to pricing your products. Every business owner will price their products differently depending on a number of factors, including the distribution model, fixed costs, raw materials, labor and more.

Before we dive into it, keep in mind these numbers are very simple and are meant to give you a place to start. In business, there are many small costs and things to consider that are unique to you. These numbers may also seem unrealistic for your situation; your costs may be much higher or lower. Adjust the numbers in the examples to fit your costs. For example, the overhead costs of a soap storefront in Seattle will be much higher than a soaper selling their products via Etsy. Click here to learn more about where to sell your products. To help make the process of tracking your costs a little easier, download this free Pricing Your Soap Worksheet.

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Wow! Thanks for the awesome response yesterday to the Craft Show Questions. A few commenters asked how to answer the questions that I posed.

Let’s have a discussion about that!

Here’s how I would answer the first question. If you have any thoughts on how YOU would answer or think that there is more to add from my question, please feel free to post your thoughts and suggestions as a comment. If you use this script, make sure you have a few main points that you memorize. This way, you can make it personalized with your flair and also shorten it as needed.

Wow! $4.50 for a bar of soap!? Why so much!?

“Thanks for noticing that the pricing is a little bit higher than the grocery store! The most obvious thing is something you can see in front of you – these are little miniature works of art. They are time intensive and hand made. But there’s a more reasons that they cost more (they’re not just a pretty face!) and in my mind, the most important thing is that I use real oils and real ingredients. The bulk of the grocery store brands are what I call a “Synthetic Detergent Bar.” This means that the soap is actually some form of lathering chemical (like SLS or Sodium Lauryl Sulfate) pressed together to form a bar of soap. “

(when they give you a disbelieving look, head into this section)

“Seriously! That’s why you need to use lotion each and every time you use that fabulous (insert big company name soap here). My soap uses skin loving oils like coconut, palm and sweet almond oil to produce a perfectly balanced cleansing bar that leaves your skin moist, clean and smooth to the touch when you get out of the shower.”

“In addition to that, I use only fragrances, colors and herbs that have been approved for use on skin and high quality ingredients cost a little more. I make everything in small batches to ensure that the product you’re getting today is the best thing that you could possibly use on your skin. And, you’re helping to save the environment by buying from me instead of (insert big company here). Did you know that they make all of their soap over in Asia? Think of the environmental cost of getting all of that soap made there and shipped over here!”

“My soap is also very hard and should last as long or longer than the commercial soap. Plus, doesn’t it smell so much better to you?”

“Finally, when you purchase from the little guy (me!), you’re supporting a better economic way of life. Did you know that little small businesses just like me contribute more to our local economy because dollars spent with me stay in our community, helping to make our community stronger? Small business is the backbone of American society (though you couldn’t tell through the big subsidies the government gives to big business!) and employs the bulk of the American workforce AND provides the majority of the tax base.”

“So, you’re not only paying for a better way to do business that makes this community stronger but you’re paying for a better bar of soap that is healthier for your skin, your family and the environment.”

“How many bars would you like? (make sure you ASK for the sale after going through all of that) I have a deal where if you guy 4 bars, it’s just $16 plus tax. They keep for a long time and also make perfect gifts.”

How to Calculate the Price of Your Products

Why Does Your Soap Cost So Much?