How much to charge for my cosmetic formulas?

by HASA98. Posted on Sep 14, 2020    3    4


Not sure how much to start for my private label formula, I've seen people charge alot of money. But I dont have a clue how to price mine.


Comments

Any14Coffee 1

There isn't a lot of detail to go on here, so will just provide some high-level thoughts and ramblings;

It's not as simple as looking at your competitor and matching, undercutting or adding more value because you have no idea how their business is structured and what their costs are, your competitor's pricing should be a factor in your decision but not a driver.

You will need to think about;

How much does it cost to produce your product in full?
Product itself.
Labelling.
Packaging.

Do you have operating/maketing costs?
Delivery of Product - how is his done, does it cost?
Marketing - ads, etc - Are they paid?

So simple example, lets say your

  • Product costs to make, label and package. - £10
  • Your Marketing and Delivery Costs - £10

    If you sell your product for £25, and only 1 product is purchased a month you would have a profit margin of 5% which is £5, all of your production and operating costs were covered in your price structure.

    The 5% profit margin has the capability to fluctuate as I imagine the more product you make at bulk the cheaper it is, marketing is probably a predetermined or monthly fee so you will take further profits from that pot too.

    What I'm getting at here is whatever you decide to do from a pricing perspective, make sure it's done with things like this in mind so you are operating in the green, i.e. you are not paying for your business to operate resulting in loss, your business is paying for itself resulting in a profit.

    Hope this helps!

    Coffee,
uhkayus 2

About tree fiddy

UncleFishKiller 2

Seek out your competition and match their pricing or offer a better value. We have no clue what "cosmetic formulas" means.

IdonthaveCooties 9

50