The pricing “rule of 5x” just means that you charge five times the cost of goods being sold. Just plug in your costs and the number of bars you get per batch. It is a MS Excel spreadsheet and ready to use. No matter which method you use below, I have developed a soap cost calculator that can save you a lot of time and tedium.
#COST PER OUNCE CALCULATOR FREE#
First however, how would you like a free Soap Cost Calculator? Soap Cost Calculator I will do whole sub-section on commodity versus artisan right after we cover some pricing basics. It’s just important to note why there can be such a large discrepancy in pricing. This is largely to the use of lower cost ingredients.Īnother factor can be making the soap in massive batches of 250 or more bars. The result is that modern shoppers often expect to pay less than the product is worth. Unfortunately, too many newcomers chose to compete on price. There is no shortage of high-quality homemade soap in any nook of the US, Canada and most of Europe. In today’s more health-conscious society, many new handmade soap companies have popped up. Some people would even drive to Amish country or Mennonite regions and buy boxes of organic farm-fresh lye soap at a time. Ten or twenty years ago, people purchasing homemade artisan soaps understood they would pay significantly more for the product. Heads Up!īefore you decide on your strategy, it is important to note the difference between selling a commodity and a specialized item. There are so many easy ways to do so now that you can come up with pricing that works quite well with minimal time or effort.īetween the four methods covered in this post, you are sure to find the one that works best for your exact needs. Properly pricing your soaps was far more complicated 10 years ago. The quickest and easiest method, but least accurate based on “hard data”.Comparison Pricing (the “Apples to Apples” method).
#COST PER OUNCE CALCULATOR HOW TO#
Top methods for how to price soap include: The 5x Rule, Time and Materials, Price per Ounce or Gram, and “Apples to Apples” Comparison.
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