Pricing guide for lip balm and skincare makers

How to price a tube of lip balm

Most underpricing comes from a cost that leaves something out: the packaging, the minutes, the tubes that did not come out right. Here is the formula, then one real example worked from start to finish: peppermint lip balm, which costs $0.76 per tube and sells at $1.90.

Updated October 4, 2026. Example prices checked on supplier sites the same month.

The formula

Cost per tube = (materials + packaging + labour) / tubes made
Price = cost per tube / (1 - margin)

Margin is the share of the price you keep. A 50% margin means the price is twice the cost. A 60% margin means 2.5 times.

A worked example: peppermint lip balm

A small lip balm maker often makes 200 to 250 g at a time and fills 50 tubes of 0.15 oz. This example makes 220 g and loses 3% in the pot.

Cost of Peppermint lip balm, 50 tubes
Material	Used	Cost
Beeswax pastilles$12.71 for 1 lb	72.6 g	$2.03
Shea butter$8.30 for 1 lb	72.6 g	$1.33
Sweet almond oil$4.65 for 1 lb	71.06 g	$0.73
Vitamin E (T-50)$10.17 for 2 oz	1.1 g	$0.20
Peppermint flavor oil$10.95 for 2 fl oz	2.64 g	$0.49
Lip balm tube with cap (0.15 oz)$36.62 for 100 pieces	50	$18.31
Labour: 45 min at $20.00/hr		$15.00
Total for 50 tubes		$38.09
Cost per tube		$0.76

Where the example prices come from

Beeswax pastilles: $12.71 for 1 lb, from Wholesale Supplies Plus, checked October 4, 2026.
Shea butter: $8.30 for 1 lb, from Wholesale Supplies Plus, checked October 4, 2026.
Sweet almond oil: $4.65 for 1 lb, from Wholesale Supplies Plus, checked October 4, 2026.
Vitamin E (T-50): $10.17 for 2 oz, from Wholesale Supplies Plus, checked October 4, 2026.
Peppermint flavor oil: $10.95 for 2 fl oz, from Wholesale Supplies Plus, checked October 4, 2026.
Lip balm tube with cap (0.15 oz): $36.62 for 100 pieces, from Wholesale Supplies Plus, checked October 4, 2026.
4 oz amber glass jar with lid: $1.46 for 1 piece, from Specialty Bottle, checked October 4, 2026.

Prices change and shipping is extra. They are here to make the example real, not as a quote. Put your own prices in the calculator.

Step by step

List what goes into one batch. Write down every material, with the amount you use for one batch of 50 tubes, and the packaging for each tube.
Price each material from the pack you bought. Divide the pack price by the pack size, then multiply by the amount you used. Change units first so grams go with grams. In the example the materials and packaging come to $23.09.
Add your time. Count every minute: making, cleaning up, packing. 45 min at $20.00 an hour is $15.00.
Divide by the tubes you made. $38.09 / 50 = $0.76 per tube. Use what you really got, not what the recipe promised.
Set the price from the margin you want. Price = cost / (1 - margin). At a 60% margin: $0.76 / 0.40 = $1.90.

Check the wholesale price

Shops that buy wholesale usually pay about half of the shop price. Half of $1.90 is $0.95. That still covers the $0.76 cost, with $0.19 left per tube.

What lip balm and skincare makers often leave out

Product left in the pot. A few percent of every batch stays in the pot, the jug and the pipette. Count it as a loss, not as product.
Containers and labels. A tube, a jar, a lid and a label often cost more than what is inside.
Your time. Melting, pouring, topping off, capping and labelling 50 tubes takes most of an hour.
Testing. Samples, stability tests and products you give away are part of what the line costs.
Fees. Market, card and online shop fees come out of the price, so check what is left after them.

Try it with your own numbers

The cosmetics cost calculator starts with this example. Change the prices and amounts to yours and you have your cost and price in a minute. Save it as a recipe in Stockria and the cost stays right when a supplier changes a price.

We set it up for you

Frequently asked questions

How much should I charge for handmade lip balm?

Work out the full cost of one tube with the tube, the label and your time, then divide by 1 minus your margin. A tube that costs $1.20 sells at $3.00 for a 60% margin. Many makers then round to a price that is easy to pay at a market.

How do I turn percents into the cost of a batch?

Multiply each percent by the batch weight to get grams. 33% of a 220 g batch is 72.6 g. Then divide the pack price by the pack size in grams and multiply by those grams. Add up every line for the batch cost.

Why is my cost per jar higher than the ingredients?

Because the container, the lid, the label and your time often cost more than the butters inside. A $1.46 glass jar can be more than half the cost of a jar of body butter. Count every part.

How does the batch size change my cost?

Bigger batches spread your time over more units and lose a smaller share in the pot, so each unit costs less. Ingredient cost per gram stays about the same unless you buy bigger packs.