It's not always that simple. Depends on your particular set up with the business. Sometimes it 4x markup. If you plan to wholesale, that changes things too. It's different for everyone.. Lol
Only in some cases. It can be 3x or 4x. Some products require way more thought due to labor, production costs, materials, little nuances that are unique to your product, etc.. But, if you're leaving room for selling wholesale and retail for a fairly simple product, then 4x is going to work better generally.
I do plan on selling once I learn more but the thing you said about having to pay for costs even if it is a hobby... perfect. My husband gives me a hard time for giving soap away for free. Definitely going to have to “ eat it “ and show him this video! He’ll be glad to know I finally understand what he was saying 😂
I learned something else from you. Just my 3rd video today and I liked everything you said. Were you a teacher? You explain everything so simple and you cover all the bases.
I worked in special education for a local school district for about 8 years. Not really a teacher but i did work with teens :) Thanks for watching and the kind words!
@@simplymoonchild3908 I know you will this last year and may have had to question answered since then, but I'm gonna answer so other people can see it. Depends on how much you make/sell. If you only make a little, a cheese slicer should do. If you plan on a lot, wire cutters are pricey but might be worth it, as long as you know you'll use it. With those, though, really do your research to make sure you'll need or want it, though. They're something like $200 a piece!!!! 🤪🤪🤪🤪
This guy is so right: you don't add your time onto handcrafted goods. When I see people doing this, they always overprice their items at flea markets etc. $20 for jewelry that isn't even sterling silver etc.
Don't forget they spend the time of making that jewellery, it doesn't matter what material it is. I am a watch repair and the time is so precious it doesn't matter what watch it is.
Oh my goodness. My mind is so blown it's about to leak out my ears. My shop goes live next week and I was using 6 different calculators and averaging the outcomes. I didn't just calculate time to make the product, I calculated everything from start to finish. From the trip to the store to buy the yarn to writing, editing and posting the listing for each individual scarf. WHOLESALE put me over $150. Retail was astronomical for a scarf that's not made of gold. I went along, however, because the calculators and blogs were encouraging. Get paid for your time, it's valuable. Just because you wouldn't buy it (I'm frugal) it doesn't mean that someone else won't. As I set up to go live next week, I started wondering if something was off. I got to this video because I was searching for whether or not to charge for the entire production, from getting in the car to buy the yarn to uploading the listing to Etsy or just the time to actually make the item. Then I watched this and I hear what you said about time, and I'm flabbergasted. But the price when I calculate things makes more sense. This question hit me after watching this ten times and then reading the comment 5 times. As craftsman, we're selling goods, not services unless we're doing custom which may be different. But if you're not custom, could it be said that when we add in time, we're charging for goods AND services? Much to think about but I may have to run with your advice.
Yep.. if I calculated all my time in then each bar of soap would retail for over $20🤣. We make our money after the sale. I agree it should be looked at, but if we nickle and dime everything into each product, we would never be able to compete with the market at all. Now, if I'm doing custom work that's a different ball game. So, how long does it take you to make one of your scarves.. including the trips to get materials. If it's more than an hour to an hour and a half, then it's going to be tough unless you're in a very affluent area. Or.. if your scarves are something that's set apart and more unique then what people can get from other creators. You said your scarves were pricing at roughly $150 each? So, that means your time and materials are $37.50 right?
@@unclejonssoap Oh my goodness! I started my shop last Wednesday and got my first sale yesterday! And the lady wants two more scarves! I can't help but wonder how eager she'd be for more scarves if I set the scarf at the original price of 187.00 for that particular kind. Based on all the other calculators and blogs and vlogs I would have done it with reservations, figuring they were the experts. If I didn't see your video at what was practically the midnight hour, I don't think I'd have this really encouraging start to my little business. THANK YOU for such practical and reasonable advice!
Thank you! I will try your strategy. Another strategy that was online, gave me a selling price of $98, for only 1 Keychain! NO ONE is going to buy a Crocheted Keychain, for that amount!
Thank you Uncle Jon for your simple cost analysis. I'm starting a craft product business and I was scratching my head how to price my products. This helps me big time. Thank you again!
I work in a crew of two. A trainee was along recently, & he has a landscaping business. This guy's no uber-genius, but I was peppering him w/ questions about how he knew what to charge (he often submitted & won lucrative municipal bids). This's always fascinated me. Thanks!
I appreciate the video. As for ink printing a label. What I did was note my ink level before I printed a label, Then I printed a sheet of labels and noted my ink level again and saw the difference. I then just put the cost of the ink and the ink level used on my spreadsheet and it figures out everything for me and adds it in the cost of my soap. So, as a result, Now I can make any size recipe and every little thing I do while adjusting my recipe and size, it tallies the cost for me and that includes ink. Very handy. I don't have to stick to the same size bar to know the cost. Although, my sales are from person to person and I only wish I could mark mine up 4x. I just figured that out. That would mean my normal $4 bar would be $6.40 Also, one more thing. I also tack in the cost of my shipping supplies. If I recieve $100 worth of oil, I enter in all the normal info but I also enter in the cost of shipping so if a bottle of spearmint costs me 33.95 and the shipping was 12.78 now my new cost for that bottle is 39.36 because it was factored into percentage size of orders. Meaning if that bottle was 30% of my shipping cost now that price is raised accordingly on my spreadsheet so I get my money back. That is included also as I adjusting my recipe. Very handy to have for pricing.
Hi Jon. Thank you for your response. I live in the US. I have Home Depot and Lowe’s in New Jersey. I will take your advice about the Lye. At least now I have a brand name. I was nervous about buying the wrong brand to make cold process soap. So thank you so much for the info. I love your calculator tutorial. I also enjoyed your pricing video. Well, I’m not going to (Lye) lol....I like all of your videos. They are wonderful and informative. I had no idea about pricing and a lot of other things you teach. Maybe this weekend, I can take the time to break out the pricing. I want to make soap for myself but also sell it. I want to start with one of your recipes that you so graciously reveal in one of your videos. Again, thank you for your kindness in sharing what you know. I appreciate it. I hope I can ask you more questions and that you don’t mind. God bless you Jon. Thank you. Maria
x2.5 for wholesale should cover all your cost. x4 for retail. Those are fair prices considering all what is involved to manufacture your product. For big wholesale orders then you have some room for price negotiations with your clients…
I just found you Jon! I love your common sense approach. I have soap hobbied about 20 years', there was no internet then, to be business savvy, but now more info. I'm doing my homework, the maths side is really the hard work! hopefully will get there and launch later this year luv n light x
I've just started learning the basics of soap making, with the intention of turning it into a business someday. Your videos helped a lot in raising my confidence about pricing the soaps. Thank you so much! A subbie now. :)
Sometimes I sell my soap to myself. This is nice because I can charge anything I want since I'll be the one collecting the money. I just took a shower with a $6T bar of soap, and man do I feel good.
Hi, I am originally from New York. I grew up in Brooklyn, NY and moved to Jersey many many years later as an adult. Toms River NJ is very different from the city life, but I like it. Still miss New York though very much so I visit the city a lot. I have never been to Mt. Holly but have heard it is very nice. Where do you live Jon? And I can’t wait to try to cost out soaps and expenses. Going to follow your cost video. I started making melt and pour last December, but I want to do cold process. It’s better. Once I get confident with that, then I want to try making other things like detergent. You’re the best. No need to watch other videos people. I’m sticking with Jon. Lol
First.. Thanks for watching! We used to spend parts of our Summers in Tom's River! Island heights to be exact. There was a small closer of Summer cottages does near the yacht club where that old pavilion burned down (again). West camp walk was the street name. Loved that little area! I think you'll be fine doing CP soap. It's not too difficult unless you try to make it that way... Lol. Just take your time in the first few batches and have fun with it 😁. Mt. Holly is ok I guess. It's had some major ups and downs through the years but it's still where I came from. Glad to have you on our channel! Feel free to ask questions and Todd me dinner ideas if there's anything you would like to see in video. Cheers!
The rarity of the product and how many you want to make in a given time, should also factor in. In my case, I'm by myself and I don't want to be bombarded with orders. Therefore I'm multiplying my cost to make times 8.
Oh sorry Jon. I didn’t see the last part of your response that I can ask you more questions questions. And yes, your response helped a lot. I’m googling Ace stores in Jersey. I’m sure they exist lol. Thanks again. Have a blessed day.
Good breakdown! I'd like to add that when you're pricing, you need to look not just at the price you pay for the materials you use, but also the cost of getting those materials to your shop. If you buy a bucket of oil for say $50, but it costs you $20 for delivery, then really the oil costs $70. "Cost of goods sold", etc.
Exactly! I probably should have spelled that out a little more clearly. I use the total cost of that product. So if it's shipped, that is part of my cost, if I buy something retail (gasp) then I include the sales tax I paid out of pocket. Thanks!
Makes you appreciate the value of buying in bulk! I used to make and sell candles, it helps to break the price of all your ingredients down to cost per gram, makes calculating your finished product a lot easier :)
Yep! I do it by ounces because I'm too stubborn to learn metric right now..lol. But I find that if I break it down like that it is easy. Just have to make sure I watch for price changes throughout the year 😁
people keep saying to i need to average my time in, funny though, I enjoy making it so much I don't feel like its a job. I am about to launch my product in June and the only thing I don't like to do is sit at the computer and make labels. :( But because I am starting out with low start up cost I know its mandatory. Thank you for the video, found you this morning and now I'm up to 4th video.
Charging for time is a very difficult thing. Fortunately soap making isn't labor intensive. It probably takes you significantly less than an hour to mix up a batch of soap. That's prep, mixing, and cleanup. Then there is cutting, printing labels and packaging. Again, less than an hour I'm guessing. The reality of the situation is you price on your direct costs. If you're working full time and not making enough to pay all your overhead and utilities and end up with enough money in your pocket to make it worth your while, you either need to increase prices or decrease costs or increase your productivity so you can make more money.
I needed this , I've just started out! I also want to learn to make soap and candles etc. Most off the stuff I make are out off socks and cotton wool and they get shipped abroad . Thank you!!
It is my hobby, that I do very regularly, but, I do give it away. I have a great job that pays very well. I'm reasonably debt free, the kids are grown, my husband died years ago. Soap making is my hobby/addiction. I make soaps for several hospitals for premies for free. I make fun CP pretty soaps and HP natural soaps, and I give them to charities, family, and a few coworkers for free. It's gets the soap out of my way so I can feed my addiction to making it. Like I said, I have a job that pays very well. I actually get to retire this year in November before my 50th birthday. Making soap is fulfilling, and giving it to low income families or individuals and for the premies gives me purpose. So, I get as much as I give. ❤❤
Now that makes sense and is a wonderful thing! My main point was the people that do it to sell at craft shows, farm markets, websites (Etsy), etc.. that don't price it like a business. Those people are completely different than someone like you who makes it as a hobby or to give it away. Giving is a good thing. But a business can't survive pricing at cost and hoping to"make it up in volume".. Lol. I'll have to check out local hospital to see if they accept soap. Great idea!
Thank you. I make model kits (figurines). I see everyone including labor costs with complex formulas. But those formulas only work if you are making stuff that only costs a few bucks to make like jewellery or gift cards. My product would be too expensive, I'd struggle to sell. My material costs are so high I only multiply by 3, otherwise my market will shrink.
very cool and extremely informative. some of the websites out there also tend to offer suggestive retail prices below some of their kits that they have available.
Hi, you are fantastic and wonderful to share your knowledge. I love your straightforward approach and no nonsense explanations. Just simple and right to it. I am learning a lot from you even though I have not made my first batch of soaps yet. I want to watch ALL of your videos. But where should I buy and what brand lye? That is was stopping me from making the soap. I want to keep it simple like you do. God bless you for all you do. Thank you so much! Maria
Hi Maria! Thanks for watching. So... That's Tricky Weston depending on where you live. If you're in the US, I can help with that. Locally, see if you have an Ace hardware store. They tend to sell Red Devil lye and it's 100% sodium hydroxide. If they don't carry it (near the plungers) then I would go on Amazon and look for Essential Depot sodium hydroxide. I'm not sure if the price is better on Amazon or directly from essential depot. I would compare both. I love that I can get my lye from them in pre portioned 2 pound bottles. Even though I make a lot of soap, it makes life easier with storage and not opening too much at one time then having to transfer 50 pounds of lye to buckets..lol. I hope that helps. Please let me know if you have any other questions 😁
Awesome! Glad you got something from it :) Hopefully, I can keep it going! Do you have anything that you want to see explained? Just let me know and I'll see if I can get it done. Thanks!
Awesome video....only thing I can think of that you didn't mention is I incorporate my shipping costs into my ppb...some ingredients are expensive to ship! Your last video on trolls had me rofl!! Keep up the good work !
Do you mean getting stuff shipped to you? I always figure that as part of the cost of goods. Shipping my stuff to customers, they pay for..lol. Thanks for the kind words. I was late getting another jerk video up :)
Yes, stuff shipped to me. My customers also pay for shipping. Always enjoy your videos, love what your thoughts are on the small business soaping industry. Soap on :)
Very helpful, thank you!~ Can you talk to us about how to develop customers when starting out? Not everyone can dive right into a website for example. Do you feel this industry has room for new makers, since just on here on RU-vid, there are so many, much competition? Thanks again !~
I love all the advice and simple breakdown of cost to create the pricing for a product. And I'd love to know which printer you use (that supplies so many multi task). Thanks.
Double is still to low even as a hobby. I'm doing it as a hobby, and learned that even that is costly not in just supplies but in lability. Apparently you can get sued for soap you gave away to someone else. Good buy hobby, hello years of legal battles and debt, if not prison (they could have had an allergic ration so bad it ended them). Then I would sell like you said, just enough to kept it going with a little extra so it can grow with new colors and new molds etc or have some spear gas money. Well that is a profit motive, and if your intent is to make a profit you are a business. So you have to register as one, and there are so many costs that go with that. Long story short just as a hobby you will have to be maybe 2.5 to 3 times. Unless you plan on hording all your soap and one day someone finds your clean corpse under a pile of soap. edit: You can't go asked on time, I agree. Every state has a different standard of living nd minimum wage. If you live in a costly state you can forget about selling your soap anywhere. So I agree, that is probably the one thing that staying being the hobby, you will be putting time into this and not making much.
thank you so much for sharing!!! I work a low wage job and want to start my own business... I have been saving up for a while and making and selling my own soap sounds like a great investment! I have a very creative vision for my own soap. I would just love to know where you buy your material from. I assume you buy bulk correct? I love your videos! keep it up :)
+Salvador Suazo Congrats on starting your own business! As for materials, you'll have to shop around and source things by quality and price according to your location. It varies depending on where you are located, what you can have shipped to you, and what you can source from other local business owners. Good luck and thanks for watching!
Thanks for the great video as I am just getting started, I am wondering what you consider a wholesale order as far as volume is concerned? Is it mixed items because since soap is usually 6 weeks to wait that would take awhile. Blessings to you!
Thank you. Love the simplecity in your way of thinking. Can you help me with some essential oils supplies. I am nieuw in soap making and I live in Holland.
When I click plus.com it shows the website of communication provider not wholesalesupplies website. Are you sure this is the address? By the way I like your video. I just stumbled on your video. Now I am subscribing to your channel. I live in Bali, Indonesia.