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Wednesday, May 19, 2010

Pricing exercises

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I've had a number of wholesale enquiries recently (which is amazingly exciting) and it has prompted me to sit down and actually work out proper pricing structures for my soaps.

Let me just say, it was a very eye-opening experience...I had no clue I was undercharging to the point that I wasn't even covering costs most of the time.

Having been brought up in a very penny pinching household (and I don't mean that in a bad way Mum, honest) it pains me to part with more cash than I have to so I've found out the hard way, that pricing my soaps based on what I think is a fair price just won't work! I wasn't taking into account the cost of my base materials, the differences in weight and difficulty for different soaps, the number of steps involved, whether I was able to do other things while making certain batches of soap or whether it had to be watched closely, how long it takes to package, what those costs are etc. It had snowballed before I realised there was even a problem.

So as much as I hate to do it, some of my prices will be increasing over the next few days & weeks as I get myself into the habit of doing actual costings. I wish soap making supplies were cheaper in Australia, dang it!

3 comments:

  1. Kimberly Beatdown Belle RobinsonWed May 19, 09:25:00 PM GMT+10

    ....and so you should charge accordingly! these soaps are AWESOME and people, including your good self who create, put their heart and soul into the creations they make... you need to cover your costs... good thing you realised it now! good luck and great work... i love seeing what beautiful creations you come up with x

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  2. *Beam* are you doing wholesale???
    we run this little shop in the summer....

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  3. Thanks ladies, I'm so glad people understand, I was really stressing about it.

    I will be soon Morgan, I have a couple of small wholesale accounts and I'm hoping that within the next few months, I can take bigger orders :)

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