Selling Your Craft

How to Price Handmade Soap

A bar of soap that costs around $2 in materials can retail for $8–14 handmade — but only if you price it properly. Underpricing is the most common mistake new makers make. Here's a fair, sustainable approach.

Start with your true costs

Add up everything: oils, lye, fragrance, colorants, packaging, and a share of your tools and overhead. Many makers stop at ingredients, but packaging and a portion of fixed costs belong in the number too. Knowing your real per-bar cost is the foundation of any fair price.

Account for your time

Your time has value. Factor in mixing, pouring, cutting, curing checks, photography, listing, and packing orders. A price that ignores labour isn't sustainable — it just means you're paying customers to take your work.

Include platform fees

If you sell on Etsy or similar platforms, build in listing fees, transaction fees, and payment processing. These quietly eat into margins, so price with them in mind from the start rather than discovering the shortfall later.

Bundle to raise order value

One of the easiest ways to increase what each customer spends is bundling. Group three or four themed bars — a 'Spa Night' or 'Garden Fresh' set — and you can charge $28–35 for what cost a fraction to make. Bundles feel like a gift and lift your average order value.