Foreword
With craft show season rapidly approaching, I wanted to share how to take a closer look at your production costs so you can effectively price your product and see some return on investment.
While there are many other associated costs, for the sake of this blog post we are just going to take a look at the very basics: cost of ingredients, cost of packaging and cost of your time. These simple calculations will help you determine which ingredients to use and will give you a visual and accurate financial plan. Since we’re just turning our hobby into a business, we don’t necessarily need to worry about wholesaling and overhead costs like storefront electricity, employee wages, etc… yet. I am going to usecold process soap对于这项运动。
The Breakdown
For demonstrative purposes, let’s say I am going to my first event and I need to know how much profit I can make. The recipe I will be using for this example is one of my more gentle formulations. Even though it’s got a higherCoconut oil百分比，它产生稳定，奶油泡沫，非常适合敏感皮肤。（我很高兴在下周的博客教程中通过这个制作的食谱！）
I normally only make small batches, so to product 10 approximately 4.8-5 oz. bars of soap, the recipe calls for the following:
- 0.9 lb.椰子油（76度）
- 0.6磅Sweet Almond Oil
- 0.5 lb.米糠油
- 0.76磅蒸馏水
- 0.3 lb.氢氧化钠
I want to scale my recipe up to make a 100-bar batch for the show. Since my original recipe yields 10 bars of soap, I am going to multiply the ingredients by 10 so I can determine how much material I need to purchase.
Just take a look at the savings when buying in larger quantities. Here at Bulk we make it easy to determine your price per pound of product. On each product page, the selection menu will indicate the total price as well as how much you pay per pound. To the left you will see pricing for our椰子76油。为此努力，我正在购买35磅。因为我将在我的食谱中使用很多。扩大您业务的优势之一是在散装中购买的能力，从而节省了巨大的金额。在今天的经济中，它只是有道理。
Review your personal budget and decide if you will save money in the future by purchasing in bulk.
Scaling Up
The chart below shows each ingredient broken down in weight and cost per pound and batch. One of my favorite resources for creating spreadsheets and documents is Google Drive due to its ease of sharing and intuitive, user-friendly nature.
将食谱缩放到100个酒吧将需要超过30磅。原料。这将超过100美元的投资，所以重要的是我们计算我们的利润率。每条肥皂重约4.8盎司。这实际上是关于行业平均水平的。
现在是时候计算了每个无人的酒吧成本的时间了。这是设置价格的第一步。一批无味的肥皂将花费52.77美元的材料，但我需要确保我也为此付出代价！通过决定每小时支付多少钱，这是每个酒吧的成本，乘以几个小时，我从头到尾投入批次。我发现平均而言，一批批次让我大致一个集体三个小时。我决定了这个冒险的价值20美元/小时。这将增加价值60.00美元的劳动力成本。当我划分100巴的收益率时，我的成本为每酒吧1.12美元。由于我在更大的数量中购买了我的成分，因此我能够节省更多的资金，因此增加了我的利润率。
香水和品种
I want to have a variety to offer my customers so I need to factor in the cost of the fragrances I’d like to offer. This works pretty much like my base oils, and I like to figure this pricing by utilizing the price per pound displayed on the亚博亚洲顶级线上游戏娱乐平台散装食子素website。I multiply the weight of the fragrance oil in pounds by cost per pound so I am able to determine that I need 1.22 lbs. ofLavender fragrance oil，费用为11.81美元/磅/磅。在这个例子中，你可以看到我也做了一些定价Grapefruit Rhubarb和Cedarwood Patchouli fragrance也是。网站上显示的每磅价格有助于我计算特定的香水是否具有成本效益。
It might seem like I am at my final cost per bar but we’ve got one more factor to consider –包装。Presentation is important, but I don’t want to lose any potential profit by using expensive包装just because it’s pretty, especially for my first event. So, I decided on simpleshrink wrap sleevesfor $0.11 each and精心设计的专业寻找标签每次0.13美元。
So, back to the Lavender example – I set my spreadsheet up to add my total packaging cost of $0.24 ($0.11 + $0.13 = $0.24) to my individual bar cost giving me a final Lavender bar cost of $1.36.
A common price I’ve seen at local craft shows is between $5 and $8, but that may vary depending on your location. It is important to also take into consideration the varying markets and sales trends of your area.
我决定把薰衣草pu酒吧在6美元rposes of this exercise. If I charge $6 and it costs $1.50 to make the bar, packaging included, I could potentially make a profit of over $450.
一旦我为所有香水做到这一点，我就可以开始预测我在工艺事件中的潜在利润。我通过为所有4个品种添加我的潜在利润，然后减去参加活动的成本 - 展位费，活动，展示材料等。我计算出约305美元。现在我能够考虑这些成本，让我们来看看我的潜在事件利润：
我现在可以看到我的潜在事件利润超过$ 1,500.00 - 哇！
In Conclusion
让我们面对 - 这绝对不是开创自己的事业的有趣部分，但是什么is有趣的是看到您的财务未来持有的潜力。建立了电子表格后，您可以开始将此模型调制到您可能销售的任何产品，甚至可以跟踪您自己的个人预算。通常作为工匠，我们陷入了困扰，我们忘记了数字，这也非常重要。
Do you see why buying in bulk can help save you money? What has helped you scale up your production or track your sales? Please let us know in the comment section below. We would love to hear from you!
Great information on calculating costs. I can’t wait to read through our recipe steps in the next blog post.
Thank you! Nina
Glad you like it Nina!
This post and all of the others have been so helpful as I start my new business. Thank you so much!
很高兴它有助于！
一切都是山羊肥皂......我需要打破这个并重新计算熔体和浇筑净香料。我喜欢这个页面的信息如何感谢！
很高兴它有所帮助;不客气！