Crafting is a challenging market since many artisans are crafters and many consumers don’t know what goes on behind the scenes. It is important to know how much it costs to create your soap! The key costs to calculate are: ingredients, your labor, labels & packaging/shipping. As a general rule of thumb, multiply your cost by 200% for retail.
Keep in mind the cost of doing business, such as insurance, electricity and marketing, is additional and should be discussed with your accountant. If your business plan is to emerge larger than a small hobby, you should plan on talking with an accountant sooner than later to set up your structure.
On average, it costs about $1-$2 to create a bar. This can change with normal market fluctuations, shipping charges and bulk purchases. Be sure to shop around for the best prices and purchase as much as you can afford and store to get the lowest price per unit.
Thankfully, we, as crafters, are no longer pigeon toed into selling only in our local neighborhoods. We now have the power of the internet! We can aim our marketing dollars towards a wealthier market.
I often see handpoured soap sell anywhere from $4-$7 depending on the creativeness. So, dependent on your costs and market, you could make $1-$5 per 4 oz bar of soap.