# Determining Price per Bar



## hiddensprings (Aug 6, 2009)

I've been selling Goat's Milk Soap for a couple years now and my business is really growing. :goodjob: It is going from being a hobby to a serious business. And, as a new "business woman", I thought I really should figure out exactly what it cost me to make a bar of soap so I can tell if my profit margin is high enough. That being said, I can easily calculate the price per batch for all of my ingredients except my goat's milk. I raise the goats, milk the goats, feed the goats, store the milk until ready to use, etc. So, how does one calculate the cost of 16 oz of milk? (that is the amount I put in every batch) Suggestions?


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## Forlane (Jul 17, 2010)

This is how I would do it, probably way too much thought into it but I like to have as realistic of numbers as possible. 

What % of the 16oz milk required per batch, does 1 goat produce on a daily basis? (How much milk does one goat produce daily on average?) How much feed is required per day for that 1 goat? Do you own or lease your property the goats are on? How much land is necessary per goat? How much did/does the land cost per goat? (1 acre per goat? 1/10? ) How much feed required to bring a goat from birth to production of milk? How many days per year will the goat produce milk? For how many years? Average cost of medicine required for 1 goats lifetime? 

Basically add all of the costs of the goat over the course of its lifetime. Take the number of days it produces milk multiply that by the amount of milk it produces on daily average. Divide total cost by the amount of ounces of milk produced in one lifetime. That will give you the true cost per ounce.

Atleast this is the way I would do it.

Hope this helps some.


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## Charleen (May 12, 2002)

Licensed goat milk producers in our area sell their fluid milk for $6 per gallon. This is the figure I use to calculate my costs even though I'm raising my own goats.

The goat milk soap business is also covered by our farm liability insurance, so don't forget to figure the cost of your insurance into your calculations, too. Plus percentage of your electricity, phone, computer line, etc. Lots of things to consider.

Good luck to you!


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## linn (Jul 19, 2005)

hiddensprings said:


> I've been selling Goat's Milk Soap for a couple years now and my business is really growing. :goodjob: It is going from being a hobby to a serious business. And, as a new "business woman", I thought I really should figure out exactly what it cost me to make a bar of soap so I can tell if my profit margin is high enough. That being said, I can easily calculate the price per batch for all of my ingredients except my goat's milk. I raise the goats, milk the goats, feed the goats, store the milk until ready to use, etc. So, how does one calculate the cost of 16 oz of milk? (that is the amount I put in every batch) Suggestions?


I would figure it at whatever it would cost to buy the milk at the store. That is how I figure the cost of home rendered lard.


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## hiddensprings (Aug 6, 2009)

Thanks Ladies....very helpful information. Goat's milk in our area sells for $8-$10 a gallon (raw milk and it is only done on shares since my state wants to regulate what you drink) So that would give me a base. 
Forlane, your method makes a lot of sense for me to truly get the right figure. PLUS, I will know what it is actually costing me to raise my girls. 

Thanks again for all of your input


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## lathermaker (May 7, 2010)

I get my milk by the barter system. But, to figure out a cost for the bar, I just use what it would cost me to buy in a store, should I lose my regular supply. My actual cost is less, but it gives me a little cushion to work with. The cost of the base oils fluctuate so bad that you don't want to be undercharging for the bars.
Customers get really grumpy if you're constantly changing prices.


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