Pricing guide for soap makers
Most underpricing comes from a cost that leaves something out: the packaging, the minutes, the bars that did not come out right. Here is the formula, then one real example worked from start to finish: lavender cold process soap, which costs $4.67 per bar and sells at $11.68.
Updated . Example prices checked on supplier sites the same month.
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 home soap maker usually makes 2 to 3 lb of oils at a time in a loaf mold and cuts 10 to 12 bars. This example uses 32 oz of oils and cuts 10 bars of about 4 oz each after the cure.
| Material | Used | Cost |
|---|---|---|
| Olive oil (pomace)$7.16 for 1 lb | 14 oz | $6.27 |
| Coconut oil 76$30.71 for 8 lb | 9 oz | $2.16 |
| Shea butter$36.12 for 5 lb | 6 oz | $2.71 |
| Castor oil$4.39 for 1 lb | 3 oz | $0.82 |
| Sodium hydroxide (lye)$17.06 for 2 lb | 4.45 oz | $2.37 |
| Distilled water$1.50 for 1 gal | 9 oz | $0.10 |
| Lavender fragrance oil$24.10 for 16 fl oz | 1.5 oz | $2.28 |
| Labour: 1 h 30 min at $20.00/hr | $30.00 | |
| Total for 10 bars | $46.71 | |
| Cost per bar | $4.67 | |
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.
Shops that buy wholesale usually pay about half of the shop price. Half of $11.68 is $5.84. That still covers the $4.67 cost, with $1.17 left per bar.
The soap 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.
Start from your full cost per bar, with your time and packaging, then divide by 1 minus your margin. A bar that costs $3.00 sells at $7.50 for a 60% margin. Then check that half of that price still covers your cost if you plan to sell wholesale.
Usually, yes. Bigger packs cost less per pound, so the same recipe costs less per bar. But bulk oils tie up money and can go off. Compare the cost per bar at each pack size before you buy the big one.
Charge for what it costs you, then for what it is worth to your buyer. Essential oils often cost several times more than fragrance oils, so work out the cost per bar for each scent and price each one on its own.
Write the recipe for one standard batch, then record what each real batch made. Stockria uses the real number of good bars when you release a batch, so the cost per bar is the true one.