home business ideas

Home Based Soap Business

Making and selling handmade soap from home

home based soap business

A home based soap business making and selling handmade soap can be a fun and profitable way of making money from home and the demand for natural body care products has soared in recent years.

An essential element of a succesful soap business is to get the pricing right. Once you have perfected How to Make Homemade Soap you are ready to start Selling Your Home Made Soap. Find out how to properly price your handmade soaps and make sure you are on the road to profit and success!

  • Research the competition. Get a price range for your homemade soap by finding out what the prices are for similar products in your target market or area. Go to local stores that stock handmade soaps and check the prices. Visit craft fairs and farmers markets, see what types of homemade soaps are popular and the prices they go for. Go online and research prices for handmade soaps. This will give you a sales price range from highest to lowest dollar amount that you can use as a guideline for your home based soap business.
  • Consider your soap business overheads. You need to include the cost of the overheads involved in making and selling soap at home such as electricity, water, phone and internet costs. Include any advertising and marketing costs such as business cards and brochures. Work out the approximate monthly costs of these overheads and write down the figure. Include a percentage of this figure in the cost of each soap bar.
  • Your equipment start-up costs. List the equipment you bought for your home based soap business. Include pans, spoons, blender, molds etc. Add up these costs and work out how to amortize the costs over a fixed period. For example if you spent $240 on equipment and you decide to amortize or write off these costs over a two year period you will need to include $10 per month in your sales prices.
  • Your ingredient costs. Add up the costs per pound of soap. For melt and pour soap include the cost of the soap base and fragrance and color costs. For cold process method soaps include the cost of the oils and fats, lye and distilled water plus fragrances, colors and any other additives. Weigh the soap bar and work out the cost as a percentage of the cost per pound of handmade soap.
  • Your labor costs. This is where you look at the profit you expect to make with your home based soap business - the cost of your time and labor. Work out how much you should pay yourself per hour. When working out your time per batch of soap remember to include time spent designing the soap, sourcing and purchasing soap supplies, marketing and selling the soap and travelling time as well as the actual time spent making the soap.
  • Your packaging costs. Include your costs for wrapping and packaging each soap.
If you find the costs of the soap are too high to make a decent profit and remain competitive review your soap supplies. Are you getting the best prices? Buying in bulk is usually more cost-effective. Review the quantity of soap you produce per batch. Doubling the amount of soap you make in each batch does not mean doubling the time spent making it, it usually only takes a little more time to make more soap per batch.

Starting a home based soap business is simple. Building it and making it successful takes some thought, planning and hard work. However you decide to market and sell your homemade soaps it is essential to have set the right price.

About a homemade soap business from home at Make Homemade Soap

Techniques for Making Homemade Soap

Use these Soap Making Instructions to create your own handmade soap using the melt and pour method.

Making homemade soap from scratch can be rewarding. Find out how at How to Make Homemade Soap

Where to source your soap making supplies? Find good resources at Soap Making at Home

Get inspired with these Soap Making Ideas

How to market and sell your handmade soap at Home Made Soap Sales

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home based soap business

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Why start a home based soap business?

  • Handmade soaps are becoming more and more popular
  • There is a growing demand for natural body care products
  • Homemade soaps are an inexpensive body care treat
  • Handmade soap is chemical free and far less harsh than commercial soaps
  • Soaps made by hand are nourishing and gentle on the skin
  • Homemade soap has character - it smells and feels good
  • Making soap at home is both fun and creative
  • Consumers are increasingly aware of the benefits of natural handmade soaps

Making home made soap is a creative and rewarding way of earning extra income.

home based soap business

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