Welcome, Guest

Author Topic: Need help in pricing my beeswax cosmetics  (Read 266 times)

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Need help in pricing my beeswax cosmetics
« on: December 11, 2008, 11:04:53 pm »
Can anyone help me to figure out how to price my beeswax cosmetics???  I have been making hand creams and various other products using my beeswax. Well after giving away and selling some stuff I have been getting rather large orders now and some people are interested in trying to sell some of my cosmetics.  I do not know how to figure out what kind of markup to charge if someone wants to sell my stuff for me.

Thanks
Annette

Offline DayValleyDahlias

  • Super Bee
  • *****
  • Posts: 1629
  • Gender: Female
    • DayValleyDahlia's Blog
Re: Need help in pricing my beeswax cosmetics
« Reply #1 on: December 12, 2008, 02:27:29 am »
Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #2 on: December 12, 2008, 12:23:37 pm »
Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

That would make a big difference about the time. Thanks and I am researching elsewhere also to get some answers.

Offline Brian D. Bray

  • Heavenly Beekeeper
  • Galactic Bee
  • ******
  • Posts: 7369
  • Gender: Male
  • I really look like this, just ask Cindi.
    • http://spaces.msn.com/thecoonsden
Re: Need help in pricing my beeswax cosmetics
« Reply #3 on: December 12, 2008, 10:23:29 pm »
Hi Annette,

I have been told that when you make a product, you tally up the amount it took you to make it, then double that...of course I am not sure if that includes your time as well...

That would make a big difference about the time. Thanks and I am researching elsewhere also to get some answers.


The time is part of the calculation in such things as fast food when a person is making a large volue of something over and over, that's why McD's can still sell a hamgurger for a buck...total the cost and double it.  But when it comes to more complex, smaller volume products time has to be added in.  The way to do that is time the manufacture of the lot.  Say you were making a batch of 4 dozen bee's wax lip balms:  You'd time the mixing and pouring time as well as the cost of ingredients and containers, divide by the total yield and then double that.  So if the 48 lip balms cost you $5 in ingredients and took a hour to prepare and you decided you time was worth $10 per hour, you'd add the 10+5 to get 15 and then divide by 48 and multiply by 2.  $15/48=.31X2=.62.   Here the price, by custom, would be increased to .69 each.

I hope that helps.  I spent 15 years in restuarant management after I retired from Police work so I've had a bit of experience doing my example.
Life is a school.  What have you learned?   :brian:      The greatest danger to our society is apathy, vote in every election!

Offline jsmob

  • House Bee
  • **
  • Posts: 116
Re: Need help in pricing my beeswax cosmetics
« Reply #4 on: December 12, 2008, 11:46:41 pm »
Hay Annette
 I will be selling my honey at a couple of retail outlets. While talking to the owner about some other products ( I am a rout salesman for a company) he said that his cost would be to high. That he has to get at least 125%. So if an item cost him $3.69 X 1.25 = $4.61 is what he would have to sell it for. From that point he would decide weather he could sell the item or not.
  With that said, I would go to Target, WalMart, and some higher end cosmetic stores. Price the items that are like yours, or near yours. ie Burt's Bees. Figure backwards at what their costs would be, Or maybe even ask. Find out who their vendors are and call them. Find out what they charge whole sell. If you are retailing your product yourself, then charge a competitive price. If you sell out fast your price is to low. If you don't move anything your price is to high. This also will give you an idea if your production costs are high or not.

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #5 on: December 13, 2008, 12:16:13 am »
I appreciate all your help with this. I did decide on something.

The hand cream I make cost me $1.50 for 1oz.

I have been selling this to friends and such for $4.50 (3 times the cost)

I decided that if I sell this product wholesale I will just double my costs to $3.00. I think this is low enough for them to tack on their price and still have an item that is reasonable to sell.

I am just small potatoes right now and do not wish to do anything on a large scale. Just getting some orders here and there is keeping me more than busy enough and hopefully I can at least cover my expenses.

What do you think?

Annette

Offline Brian D. Bray

  • Heavenly Beekeeper
  • Galactic Bee
  • ******
  • Posts: 7369
  • Gender: Male
  • I really look like this, just ask Cindi.
    • http://spaces.msn.com/thecoonsden
Re: Need help in pricing my beeswax cosmetics
« Reply #6 on: December 15, 2008, 08:38:00 pm »
If a retail store buys an item for $2.69 the formula for markup is costX1.69=sales price.  So $2.69X1.69=4.55 or $4.59 traditional. 

This sounds more like the formula you want.

There is a difference in purchasing and item adding value added for a sales price and manufacturing an item for sale.  In manufacturing (ie food service) the normal formula is double the cost, if doing value added the formula is costX1.69 for a 40% (of final sale price) markup.
Life is a school.  What have you learned?   :brian:      The greatest danger to our society is apathy, vote in every election!

Offline BjornBee

  • Galactic Bee
  • ******
  • Posts: 3775
  • Gender: Male
Re: Need help in pricing my beeswax cosmetics
« Reply #7 on: December 15, 2008, 09:14:04 pm »
jsmob,
Your example given is really just the same as a 25% markup. I wish I could find some of those markets willing to only mark up 25%..... :-D

Now I have seen some that want a 125% markup, but that would make your example final price of $8.30 for that wholesale price of 3.69

I think if you find markets that will take 25% markup on your price, you should be kissing their feet everytime you walk in their store.... :-*
www.bjornapiaries.com
www.pennapic.org
Please Support "National Honey Bee Day"
Northern States Queen Breeders Assoc.  www.nsqba.com

Offline Cindi

  • Galactic Bee
  • ******
  • Posts: 9825
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #8 on: December 16, 2008, 12:29:00 am »
Oh Annette, I wish you well.  You have a most beautiful product that you are making, I am very, very impressed with that I have seen.  I wish that I could do the same, but I just am not that one that can take that time like you are, I basically do not have the patience for this kind of stuff.  My hat off to you girl!!!  I think that ensuring that you get totally and perfectly recompensated for your hard work is prime here, you go girl!!  Have that great, most wonderful day, health.  Cindi
There are strange things done in the midnight sun by the men who moil for gold.  The Arctic trails have their secret tales that would make your blood run cold.  The Northern Lights have seen queer sights, but the queerest they ever did see, what the night on the marge of Lake Lebarge, I cremated Sam McGee.  Robert Service

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #9 on: December 16, 2008, 03:08:48 am »
Thanks dear people for all the suggestions. I have had so many offers for my creams and lotion bars and people wanting to sell my stuff for me I am feeling overwhelmed and needing to step back and truly figure out where I want to go with all this. Business doesn't come easy for me as I would just love to give everything away, but of course that is not practical and hubby is watching the receipts.

I seem to just feel good getting smaller orders here and there that I can fulfill in an easier manner. I have a friend in Hawaii who is a wonderful salesman and offered to sell my stuff over there on a bigger scale. I am not sure I feel ready for this, but not ruling it out yet.
I am still formulating different products so I have to see how I want to go with it all, or even at all.

Also if anyone here had a look at my posting of some things I made, well the little bee had to go as well. I downloaded the Haagen Daz bee from the website and made up a cute label using the bee,  but when you read the terms of use on the website, it clearly states "to be used only for personal use". Since I am selling now, I had to come up with a different label. I have a designer friend who helped me and the new label truly makes me very happy. I will still use the little bee label for giving gifts.

I truly appreciate each and every post and how you all made the efforts to enlighten me how business works. I have learned a lot in a very short time.

Take care and thanks once again
Annette


Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
mistake
« Reply #10 on: December 16, 2008, 03:14:18 am »
mistake, meant to pm someone. sorry

Offline JP

  • The Swarm King
  • Universal Bee
  • *******
  • Posts: 11709
  • Gender: Male
  • I like doing cut-outs, but I love catching swarms!
    • JPthebeeman.com
Re: Need help in pricing my beeswax cosmetics
« Reply #11 on: December 16, 2008, 09:04:45 am »
Annette, don't get overwhelmed, its just not worth it and don't sell yourself short. You have a fine product that is handcrafted and very desirable but you can only supply so much of your product as you are a very small operation.

You need to consider what you want your clientel to be, as who do you want to target. You enjoy making these gifts but if you are not extremely well compensated, the labor of love soon fizzles to total aggravation and then you've just dug yourself into a miserable hole and the fun of it is a thing of the past.

I would set your prices high for consumers and give friends a break, remember why you started doing this in the first place, for the shear joy and love of it right?

Reasonable people expect to pay more for handcrafted things, besides they appreciate patronizing small businesses because they know that love and joy created those items.

Its just like fresh raw honey vs store bought crap from God knows where, get your price and enjoy every aspect of your creations, good luck to you Annette!


...JP
My Youtube page is titled JPthebeeman with hundreds of educational & entertaining videos.

My website JPthebeeman.com http://jpthebeeman.com

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #12 on: December 16, 2008, 05:11:30 pm »
Thanks JP

Yes, you are right about knowing exactly what I want, and actually I do know what I want. I had a women tell me yesterday that she can sell my stuff in a Spa near here and I felt really, really good about this. So I am going to target Spa's and some specialty stores in my own area. Better to keep it small right now.

Thanks again.
Annette

Offline DayValleyDahlias

  • Super Bee
  • *****
  • Posts: 1629
  • Gender: Female
    • DayValleyDahlia's Blog
Re: Need help in pricing my beeswax cosmetics
« Reply #13 on: December 17, 2008, 06:09:07 pm »
I made lotion bars today!  Annette, you inspired me!  What fun...I have used up almost all the beeswax I harvested.  Now of course...I am looking to buy the stuff!

Where can we find the best wholesale prices on beeswax, cocoa butter and the like I wonder?  I dohave a resale license for the dahlias, but I have never searched this stuff before.

I would like to sell the lotion bars along with the dahlia bouquets that I sell in the Summer...

Any ideas?

Hugs

Offline annette

  • Galactic Bee
  • ******
  • Posts: 5353
  • Gender: Female
Re: Need help in pricing my beeswax cosmetics
« Reply #14 on: December 18, 2008, 12:39:42 am »
I will PM you tomorrow with many sources I have found out. I promise tomorrow.