Soap and Bath Bomb Business

DIY bath bomb business Seasonality and Trends

How to Make Profit from Your Handmade Soap All-Seasons

When I was little I would always see my Dad fill up a page of a columnar after dinner. “This is the secret to a debt-free household,” he says. “Keeping track of everything from expenditures, liabilities, and looking for patterns.” The handmade soap business is not in any way different.

This is especially true with the looking-for-patterns part. Knowing trends and seasonality on any business is an important factor if a handmade soap maker like myself wants the handmade soap recipes to work their money magic.

I know my Dad’s accounting blood flows through my veins whenever my eldest son admires my Excel spreadsheets, listing every handmade soap making supplies I purchase and handmade soap making kits I sell.

So what is business seasonality?

 

It’s when certain seasons or events affect a business in such a way that the business lose (partially or entirely) revenue streams. For those who are just planning to get their feet wet in diving into a handmade soap business, don’t let this phenomenon scare you. It affects ALL kinds of businesses. Moreover, it can totally be combated.

As with any battle, they key to winning is preparation. But how, you ask?

For a handmade soap business like yours, which rely heavily on word of mouth advertising or on craft fairs, here are three words you need to remember: social media marketing.

Social media marketing does not necessarily mean simply selling your handmade soaps on various online platforms and promoting your products so you can make money out of that handmade soap recipe and that essential oil combination you are very proud of.

It also means actively devouring any information available on these online platforms to improve your sales. Here are three key points in creating a social media marketing strategy for your handmade soap business.

GET TO KNOW YOUR AUDIENCE

 

A key component of marketing DIY bath bombs — or any other products, for that matter — yet something that some eager beaver crafters tend to forget is knowing the targeted audience. Yes, most of those who want to make a living out of their craft have an idea who might want to buy their products. But they don’t take time to really get to know the audience.

To know what to sell — and HOW to sell — you have to know what matters to your audience. Why do they buy DIY bath products? Which bath bomb recipe do they ask about a lot? Which essential oil combinations are getting a lot of attention? What makes them prefer to shop online rather than to just pick one at a famous bath and body store? Are they into craft fairs? Which ones? Do they like handmade soaps and bath bombs for the scent, the color, the texture?

Once you’ve identified all these (and feel free to add questions as you fit your handmade soap business and your audience), then you can curate a social media marketing strategy that your target audience will surely devour and that will translate into sales in no time.

Quick tip: Stalk those who frequent other DIY bath bombs online shops (or maybe even just DIY online shops in general). Take notes on what posts they tend to like and comment on. Incorporate those notes on your social media posts.

MAKE SURE TO TREND-WATCH CONSISTENTLY

 

Just like getting to know the audience, this requires a bit of “stalking.” Look at Twitter. Search on Pinterest. Take a moment to park yourself on Instagram.

Are there any hashtags related to your brand that is attract a lot of buzz? If yes, then make sure you use that hashtag when making a post. Is there a craft fair that’s generating interest? Make sure you sign-up for it.

Do this every day, consistently, without a miss. Trends on bath bomb recipes change every day and your business must keep up with them to stay relevant in the market.

Quick tip: Bookmark a few known handmade soap sellers — small business or commercial brands — and check what is common in their most liked and commented posts. See how you can bring that into your own business.

DIVERSIFY

 

When you trend-watch, don’t only look for popular hashtags. Also check out what fans and followers commonly love. See if you have a variant that caters to that and diversifies your offerings to open yourself to a wider market.

Let’s say you specialize on minty DIY bath bombs in earth colors. If you notice that in a particular month, people tend to lean more towards bath bomb recipes that are fruity and bright-colored, maybe it’s time to learn that that and start mixing up your essential oil combinations.

Widen your craft. Take time to learn more not just about your craft but other crafts as well. This means that in seasons when bath bombs are just not making a killing in sales, then you have a “back-up plan.”

And there you have it. Some few tips to prepare yourself for the inevitable business seasonality. If you have any other tips you want to share with business crafters, comment away. We also would love to hear how these tips helped you out.


Need craft supplies for your DIY Soap and Bath Bomb projects?

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Interested in crafting ideas like Bath Bomb Recipe, DIY Bath Bomb, How To Make Bath Bombs and more? Let us inspire the creative spirit in you. Browse our blog for more handmade soap recipes.

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midyear

Pointers to Make Sure Your Handmade Soap’s Price is Right

One of the most challenging aspects of running a handmade soap making business is determining how much you will charge per handmade soap that you are about to sell.

Going too low might not cover your handmade soap recipe costs or worse, it might correspond to losses on your end, like taking away quality fragrance oils from your recipes.

Pricing handmade soap making kits too high, however, might turn off your potential buyers, too. To find the sweet spot in pricing your merchandise, determine and calculate how much it will cost you. For starting a handmade soap business or any business, the universal formula to be used is:

(Raw Materials + Fixed Cost + Labor Cost) x Markup = Retail Price Per Piece

To achieve the minimum base production cost, add up the raw materials, fixed cost, and labor cost. This basically gives us an idea of how much the handmade soap is worth.

On the other hand, the markup or profit is the amount added on top of your base price to arrive at your selling price. To give you a better idea of each component, check out the 4 pricing aspects you should always consider:

1. Raw Material

Find out what type of handmade soap you want to sell in the first place. Your choice will ultimately be the baseline on how to price your products.

Will it be a bath bomb or an organic handmade soap? Perhaps it’s a fruity one or one with essential oils? This will also determine what method you are going to use. Will it be melt and pour, cold/hot process or milling, DIY bath bomb?

Each type will require different handmade soap supplies that may raise or lower your overall cost. See below for a sample breakdown of raw materials for a purple lavender handmade soap:

 

RAW MATERIAL COST
Fragrance: Lavender $6.50
Color: Purple $8.00
Oils: Olive $15.00
Water: Distilled $4.00
Lye $15.00
Packaging (Wrapper, Jute String, Logo Print Out) $10.00
TOTAL $58.50

 $ 58.50 / 75 pcs = $ 0.78

(Total Raw Materials / Number of Bars = Raw Material Cost per Bar) 

2. Fixed Cost

Basically, fixed cost is the cost of running any business. This covers electricity, rent, and other utilities required to produce your handmade soap products.

Fixed cost may vary from month to month depending on your manufacturing consumption so it is important to accurately compute this to cover your monthly recurring expenses.

Assuming you’re working at home, here’s a sample calculation below, omitting the room/store rental:

 

FIXED COST COST
Electricity $30.00
Water $15.00
Phone $20.00
Internet $70.00
Equipment (i.g. Mold, Tools) $45.00
TOTAL $180.00

(Monthly  Fixed Cost / Number of Bars = Fixed cost per bar)

3. Labor and Manufacturing

Never ignore your own labor costs. Determine how much per hour will you charge for yourself and establish how many hours it would take to complete a batch of your handmade soaps.

Don’t forget to factor in your prep time, cleaning up and doing your own packaging. These would already give you a rough estimate of your own monthly rate. Here’s an example:

 

LABOR COST
Preparation Time $30.00
Making the handmade soap $15.00
Cleaning Up $20.00
Packaging $70.00

 

LABOR COST
Preparation Time $30.00

 2hrs & 30min x $10.00 per hr / 75pcs = $0.33

(Hours x Hourly Rate / Number of Bars = Labor cost per Bar)

 

4. Markup

After figuring out how much your handmade soap bar costs, it’s time to include your revenue per product sold or your markup. Adding this to your base production cost will ultimately give you your final retail price. Experts recommend markup of 150%-200% or multiplying the base cost by 2.5 to 3.

Based on our sample above, here’s the final selling price of the lavender bar handmade soap:

(Raw Materials $0.78 + Fixed Cost $0.40 + Labor Cost $0.33) x 2.5 Markup = Retail Price Per Piece $3.78

All these aspects are what makes up the overall pricing of your handmade soap making business. Keep in mind to work on a trial and error basis by adjusting your costs and experimenting on your mark up in order to find the right price for your homemade handmade soap products.


Need craft supplies for your DIY handmade soap and Bath Bomb projects?

Our products are carefully curated to bring to you the best of the marketplace, including All Natural Bulk Dried Edible Flowers, Skin Safe Liquid handmade soap Dye, and Mica. Creativity drives us to keep our offerings on trend and in style. 

Visit our Store and purchase one of our items to receive these freebies!

If you want soap recipes to help start a soap business, browse here and here!

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Are Bath Bombs Cosmetics Bath Bombs

Selling Bath Bombs Legally and Other Myths About Bath Bombs

We will be upfront here and answer the question: NO, bath bombs are not cosmetics.

But for the sake of argument, I want to unfold this issue a little further. I think a lot of people reading this right now are either:

1) a long-time bath bomb user and have recently been concerned about some articles that have been popping up about bath bomb recipes not using FDA-approved colorant; or

2) those who have never tried bath bombs and would want to but is doing a bit of research on how to make bath bombs, what is a bath bomb, especially when it comes to FDA regulations.

Whatever reason got you reading this article, we hope to make light of a few concerns you might have regarding using DIY bath bombs before rummaging through soap making kits or going back to just meddling soap making supplies.

First, though, we need to define a few things to help ease necessary explanation later.

What’s a Bath Bomb?

Let’s start by defining what is a bath bomb. Traditionally, these are circular, bomb-like bath products that are packed with a mixture of ingredients that effervesces when it makes contact with water. So when added to bath water, they add scent, bubbles, and colour.

What’s a Cosmetic Product?

Let us get technical here and lift the very definition of a cosmetic from the Food and Drug Administration (FDA). Their website says,

“The Federal Food, Drug, and Cosmetic Act (FD&C Act) defines cosmetics by their intended use, as “articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body…for cleansing, beautifying, promoting attractiveness, or altering the appearance” [FD&C Act, sec. 201(i)]. Among the products included in this definition are skin moisturizers, perfumes, lipsticks, fingernail polishes, eye and facial makeup preparations, cleansing shampoos, permanent waves, hair colors, and deodorants, as well as any substance intended for use as a component of a cosmetic product”

How does the law define a cosmetic?

The Federal Food, Drug, and Cosmetic Act (FD&C Act) defines cosmetics by their intended use, as “articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body…for cleansing, beautifying, promoting attractiveness, or altering the appearance” [FD&C Act, sec. 201(i)]. Among the products included in this definition are skin moisturizers, perfumes, lipsticks, fingernail polishes, eye and facial makeup preparations, cleansing shampoos, permanent waves, hair colors, and deodorants, as well as any substance intended for use as a component of a cosmetic product.

How does the law define a drug?

The FD&C Act defines drugs, in part, by their intended use, as “articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease” and “articles (other than food) intended to affect the structure or any function of the body of man or other animals” [FD&C Act, sec. 201(g)(1)].

How can a product be both a cosmetic and a drug?

Some products meet the definitions of both cosmetics and drugs. This may happen when a product has two intended uses.

For example, a shampoo is a cosmetic because its intended use is to cleanse the hair. An anti-dandruff treatment is a drug because its intended use is to treat dandruff. Consequently, an anti-dandruff shampoo is both a cosmetic and a drug.

Among other cosmetic/drug combinations are toothpastes that contain fluoride, deodorants that are also antiperspirants, and moisturizers and makeup marketed with sun-protection claims. Such products must comply with the requirements for both cosmetics and drugs.

Why Bath Bombs are not Cosmetic Products

With these definitions, let us go through each point of FDA regulations’ definition of a cosmetic and see if it checks out with what is a bath bomb and with the purpose a bath bomb serves.

Are bath bombs meant to be rubbed on skin?

  • No.

Poured?

  • No.

Sprinkled?

  • No.

Sprayed?

  • No.

Do bath bombs cleanse?

  • No. They are more like “additives” to that which technically cleanses the body.

Beautify?

  • Also no.

And I guess we can now also say that bath bombs are not moisturizers, perfumes, nail polishes, eye and facial makeup, hair products, or deodorants.

Yet bath bombs sometimes – even the DIY bath bombs like these ones – include oils that promise to moisturize the skin or combat itchiness and inflammation. Do they now fall into the cosmetics category? Yes. And by all means, you are free to use food-grade dye, as FDA regulations’ “Color Additives Permitted for Use in Cosmetics” page, food colorant may be used.

Should Bath Bombs be FDA-approved?

Here’s a good response from our own customer care on why we still need to loop back to bath bombs not being cosmetics:

“However, if you are using [bath bombs] at home or selling bath bombs that are used into the tub water to color it with fragrance; based on the response from FDA above, we do not think it is under the cosmetic category because it is no cosmetic value. Please do feel free to double check with FDA directly if you have further doubt.”

We hope this article helped. If you have any further questions, comment away and we’ll try our best to give an answer, especially those related to DIY bath bombs. As our customer care response also said, feel free to direct questions to FDA and we’d love to hear what they have to say so we can share best practices with fellow soap- and craft-makers.

References –

The FDA website- Is it cosmetic, a Drug, or Both? (Or is it Soap?)

 


Continue Reading- 4 Hot Leads on Starting a Soap Business on Instagram

Our products are carefully curated to bring to you the best of the marketplace including All Natural Bulk Dried Edible Flowers, Skin Safe Liquid Soap Dye, and Mica. Creativity drives us to keep our offerings on trend and in style.

Purchase from our Store and get these resource for free!  If you have additional info that you can share, write to us here

Interested in crafting ideas like Bath Bomb Recipe, DIY Bath Bomb, How To Make Bath Bombs and more? Let us inspire the creative spirit in you. Let’s connect via Facebook and Pinterest and you might just win a free giveaway!

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