How to Calculate Cost of Material - Selling Homemade Skincare Products
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- čas přidán 12. 11. 2019
- How to Calculate Material cost of your Homemade Skincare Products. Selling Homemade Skincare Products. Selling Skincare Products Tips.
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Tara your content recently has been CRAZY good 🥰 (who else agrees?)
awwwh thank you so much!!! That truly means so much to me
TaraLee thank you for responding 😭😭❤️❤️
Of course! Thanks for all your support 💗
@@TaraLeee by chance do you buy in bulk or? Is amazon the only company you buy from or?
@@TaraLeee have you thought about a coop
I just wanted to take the time out to say that I am a 22-year-old college student in Texas and I’m trying to start my own hair care product line your videos have helped me tremendously, thank you !!!!
The Formula is 1 COI +S=T.
Step 2 convert oz into Grams . Step 3 T÷G= PG
Step 4 PG×G= is your answer. I hope this helped. I watched this video like 50 times but I finally got it. Here's is break down of all the letters I used above . S which is the shipping, COI which is the cost of item. T is the total price of item with shipping. Then take T and Divided it by G which is Grams(use Google or download a converter app). Which then gives your the PG (per gram) and then multiple that by G to give you your answer.
You are awesome and such a big help!! Thank you so much for being so consistent over the years, and I hope to keep watching your content for years to come ! 🤗🥰🤞🏾❣️
Hey Tara, I've just spent the day creating a spreadsheet using this video. Absolutely understandable and easy to follow. You have an amazing gift. Thank you for you videos and knowledge ❤
And I am going to follow u and do a spreadsheet
Did you use google sheets or excel for your costing spreadsheets?
Thanks
@@RK-su4hs I used excel
This is such a neat video, I love it thanks for sharing! And I am obsessed with your peach pillow! 💕
You are such a blessing ❤️❤️ keep up with these WONDERFUL videos ❤️
I'm so glad that I found this. I was trying to figure out how to price my first product. This was super helpful!
Thank you sooooooo much for all your tips, bless you and your business
This was so helpful thank you so much tara, I love you ❤
Omg.. thank you so much.. u got a subscriber... am done with my home made products and was struggling with the pricing.. this was so helpful
Thank you for sharing! Awesome!❤❤
Wow this is soo helpful, thanks Tara!!!
glad you found it helpful :)
thanks for watching
The “I feel like Dora” got me 😂😂 You are amazing Tara, do you have an updated version of this video that will simplify or make it any easier? This one is easy to follow but I know you are a very innovative person and you are always finding out ways to do this easier ❤️
I needed this THANK YOU
Great helpful video!!
Thank you! Yes plz make a wholesale video!
You're amazing. Thank you for this video.
Thank you so much God bless you and your brand❤
Awe I love your set up so much!😍💕
awww thank you! :)
Glad you like
You're a great teacher you know that? thankyou
Very helpful great video ❤️
You explained it great Thanks I was having problems understanding how to price my product.
ooo this is so cool! thanks for sharing ehhe i learned something new
Thank you so much. This video help me whole alot. You the best!!!😉
Great information, thank you.
Thank you so much!
Thank you!!
On your phone your can use WPS Office for the charts
4:48. Excel. I'm genuinely curious if she didn't know that Excel existed lol
Always love your videos👌💗💗
Thank you so much! :)
Thanks for this. I'm about to start selling and completely forgot shipping!
Tara I so paused the video and did the calculations I FEEL ACCOMPLISHED EVERYONE THANK TARA 👏🏽💐💐💐💕💕💕❤️
Great content as usual Tara; very helpful. The only thing I would alter (and I know I’m being picky here) is the division of the shipping cost; I believe that rather than simply dividing it equally, it should be divided according to the ratio of the subtotal. It would make sense for items on the invoice that are proportionally small in cost compared to other items xx
This comment was literally years ago lol but how would dividing “according to the ratio of the subtotal” look? How would I divide the shipping
Thank you ❣
I swear to god you have saved me so much times I cannot thank you enough
I understand your process of obtaining the amounts per Oz and per Gram.. super easy for me and I thank you for laying it out the way you have here... however I have a BIG question! Why are we not adding in the tax amount with the costs? Is there a particular reason, because it just seems like we should be doing that because it is part of the cost.. but I also wondered if maybe there was another rout for that? I am working diligently on this process to find all my costs right now so your response would be GREATLY APPRETIATED!! Love the video and thank you again Tara Lee!
Yes, a video on how to sell on wholesale will be helpful.
You’re amazing!!
awwh thank you so much! :)
You're amazing!
Hello! thank you so much for all these helpful videos- you have helped with reducing my level of anxiety of creating holisitc/alternative medicine/skin care business. Can you please do a video on how to calculate the cost of one drop of essential oils if that makes sense or can I use the same method as presented in this video? thank you so much!!!!
Thank you tara , love you 💓💋
Awwwwh love you!
Your my favorite person 😊 your voice calms me so much ☺️☺️☺️☺️☺️☺️
Awwwh really! 🥺🥰
You are so sweet!💗
Very interesting!!
glad you enjoyed.
thanks for watching :)
Hello Tara! 🥰Since I found your channel, I've been watching all your videos. You are a love for sharing all this information for beginners like me. Thank you!💜 I just have a doubt about % loss in production, do you manage any % of loss in production to incorporate into the cost? I know that in some sectors, such as food, it's between 7-15%, but in the case of cosmetics, I have no idea. 😓
Also, I wanted to send you a Happy New Year, full of blessings, many improvements in your health, much happiness and love. 🥰🥰🥰
The best would be to use the cost of shipping each ingredient separately and use it as the cost. That way even if you only need to ship one ingredient, the cost of shipping is already accounted for
Hi Tara. Do you put the cost of packaging in your final price?
Tara what a helpful video. Thankyou
Do you include Etsy (or in my case Amazon) fees into costing?
Appreciate the help & guidance
you're the best
Do you also calculate the taxes you paid on the shipment? Shipping+Handling+taxes or just Shipping+handling?
Tara do you use a template for your costing? Do you recommend google sheets or excel for your business related charts & details
Thanks in advance
You are a source of inspiration for me
Can you please tell me what preservatives should we I use in lipsticks and body butter before selling them?
Hi! I love your videos! But question. What if you're shipping is free?? How do you incorporate shipping?
Hi Tara. Do you incorporate the price of packaging in the price of your product?
I do understand what you are saying.
would the coloring and fragrance be something to add into the cost??
I love your channel! Quick question: Why not include the cost of packaging as well? (Bottles, lids, labels, etc)
You definitely want to include that. This video is just about how to calculate the cost of the actual material in the product. I have another video talking about how to price a products all together
Hey tara so that means when you add
.055 + .055 would equal to 1.1 and that would be 2 grams of allantion. Is that correct?
Idk if i completely skipped over it but after you do price per gram do you multiply by the amount of grams in the product
Hi Tara, this video was helpful. I have a question. After we find how much it costs for 1 gram of each ingredient, is the next step to multiply the 1 gram by the total amount of grams in our product formulation to get the total costs for the total amount of grams in our formulations?
I hope this question wasn't confusing, but I am so lost.
How to you figure out the cost if the size in grams is as small as 0.05g, I’m trying but failing epically as to try and divide 1g into such a small number I’m struggling?
Thank you so much for these informative videos! Would you do the same if you brought your items from the store? Just not adding in a shipping cost?
yup. exactly :)
Thank you ❤
Where can I get silicone resin ? It’s so expensive on making cosmetics
Where does packaging go, overhead or production? Things like stuffing, organza bags for products
Hello Tara, I started following you just last week and you have been amazing. Please, I don’t seem to know the 8 oz, 2.2 lbs and 1lbs. In case my Allantoin was 100g or 250g and white willow bark 60ml how will I get a gram from them.
This is so interesting!!!
I'm glad you found it interesting.
thanks so much for watching :)
How would this work for fl oz or ml ingredients?
This causes me SO much confusion in my business when trying to calculate the cost of a final product because each of my products contains multiple ingredients of differing weights. Each time I buy my ingredients they cost a different amount from the last time due to buying different sizes of the ingredients or simply because of using different suppliers when my preferred supplier is sold out. So I have to do these calculations non-stop in my business and it's sooo tedious. Do you have any tips for making calculating the cost of a product easier/quicker, please? x
I always use the most expensive cost so I don’t have to recalculate all the time. Cause I know sometimes it’s more expensive and other times cheaper depending on how much shipping costs and what supplier you have to buy from.
@@TaraLeee ah thank you. So your calculations are an estimate rather than the exact final product cost. I was always trying to make the calculation precise. Thanks then xx
@@TaraLeee hey Tara can you help me as well. My comment is above . I’m having a really hard time as a bulk buyer of oils . Being that my cost for ingredients came up to such a high amount
hey quick question what if your buying different sizes of the ingredients each time say i buy 8oz and i do all of this what you just showed me but then i need to make bigger batches so i buy 1 gallon of each ingredients do i do this over or i keep the same grams thing from before.... and how will this affect the price of my product because i don't want to keep changing the price... and also how do i use the supplies+laborX2+overhead=whoesaleX2+=retail when using this method i know u said in the last video use how much each gram is and add it in the supplies
Whew! I think I’ll leave that to you! How can I purchase skincare products from you?😊
It was really confusing in the beginning because we don't use ounces in South Africa but I managed to work it out😊
Hi, do you charge the labor?
So if you were using oz then you would just divide the cost of the ingredient by the number of ounces?
My jars are 8oz 25 for$59 including shipping. Its 0.262 for a gram. So when I tried to convert it I to ounces it said 7.34 🤔 and I know that's too much for an ounce. Can you help me please idk what I'm doing wrong
Want to see more products for oily skin type please
gotcha! I'll keep that in mind :)
It's hard for me to formulate products for oily skin types since I don't have oily skin and I'm the one who tests all the products. lol But I will definitely try to do more :)
What if i get my ingredients from different websites?? Do i still divide the different shipping cost by all ingredients?
How do you calculate your cost on your labels and ink? I'm having trouble there.
do I add tax along with shipping ?
Does anyone make their own handmade products (hair and body) and do you also buy in bulk ? Because i have to buy my oils that i use more of in bulk because i make a lot of products with those specific oils. My ingredients alone doing all the math came up to $79.33 .. I haven’t included packaging pricing , overhead and labor. Also i work in oz not grams
So I love this I completely understand everything and even made me a spreadsheet but one thing I have to ask how do u get 500 g for 1 lb I keep getting 453g for 1 lb😢
I loved this video it was helpful, and I tried the calculations too. But I didn't get one thing, that shipping cost is only for one product? or more than one?
$8.99 is for the entire order, she then split it up according to how many items she ordered so each item carries an equal part ($1.28) of the shipping cost and that gets incorporated into the total cost for each item. You can do it by weight too, but I find it easier to just split it evenly between all the items I've ordered. It might be worth doing it by weight if one item is much heavier than the others, just so that an otherwise cheap ingredient doesn't suddenly become expensive due to the high shipping price of the heavy item.
so is the end number supposed to be low? I got $3.75 after multiplying the price for 1g of my ingredients by the amount of grams of the ingredient in 1 jar of my body butters. If so, If I were to price a jar for $12 does that mean my profit is $8.25?
PC based software comparable to MAC numbers is Microsoft Office Excel
when im measuring out water it seems to be too much im not sure why!
Percent usage of product multiplied by unit price divided by grams used. That should give you better estimate. 😉
Hey Tara my ingredients come in pound for example 7.5lb for coconut oil it cost $33.12 but when I add the shipping in it it’s $47.22. And then when I got to put 7.2lb in ounces it’s 120 ounces and then when I put it in grams is 3401.94 and then when I start doing the math it doesn’t make sense can you plz help me
Thanks
..I can take classes with u personal....I'm in nyc I don't i went to Puerto Rico for take some soap classes with a other youtuber 😊🇺🇸✏📓🤓☕
I'm sorry, but I don't offer classes.
That is awesome you got to go to Puerto Rice for a soap class though. sounds fun! :)
@@TaraLeee yes..a convention ...4 days...but think about 🤔🤔🤓😉😉Thanks ah now I can make ur lye soap....🤓🤓😊thanks thanks again guapa bendiciones cada Dia bonita 😍😍😍🇺🇸🇺🇸🎁🎁📓✏☕
If you only work in ounces will it be the same set up ?
And before you calculate the price of shipping are the original prices before tax or including tax ?
Yes, you would just divide the cost of the item by the number of ounces in that item.
Hello TaraLee, working in supply chain, I am used to calculate those cost of material. You usually also need to add your electricity costs, evaluate the cost of you working for it and so on. Therefore, the pricing needs to be calculated based on that also.
Yup! This video is all about how to calculate cost of material though. I have a whole other video about how to price items that talks about overhead costs, which would include electricity and labor costs - czcams.com/video/fcO5cvO1khE/video.html
Please help. I am stuck. What if i have a 1oz oil and im trying to figure out what the price of .60oz of the oil. Im sorry if im confusing! Please help
Is it possible (in my personal calculations) to have 4 digits after the decimal? Ex: .0089 PLEASEE RESPOND! ❤️
Hi crazy question, math isn’t my thing sssso how do I do this with fl. oz? I’m lost
Ok, we still have to add boxes, your paper, your Etsy. How do we add them to this and then get the actual cost?
So with your first product you use it costs 0.55 grams right, when you are looking into making a product, say you use 30 grams of that item in your product how do you tally that up? Because I have an all natural body butter line and I use 2 tbs of Almond oil (and other stuff of coarse) to make 5 body butters and I saw that 30 grams = 2 tbs so I am so confused at this point on how to get the price of that for each!
Hey! You would just multiply the amount you use (30 grams) by the cost per gram of the item (say $0.05) to get a cost of $1.5. If you use the 30 grams for 5 body butters, then you would divide the $1.5 by 5, which would be $0.3 for the almond oil for 1 butter. Do this for all the items you use in the body butter and add the costs of each ingredient together to get the full material cost of one body butter.
Excel is the spreadsheet software for PC users.
thanks so much! :) I thought it may be, but wasn't sure.
or Google Docs which is free and you can access anywhere with a wifi connection!
vegan viridity Google Sheets
how much according to you should be the bottle cost? empty bottle i meant especially when your product is new in market and you are launching it in small batch
Do u have a recipe for acv conditioner??
I used to use an ACV rinse. I actually just used pure Apple cider vinegar. I might of added some essential oil to it. I can't quite remember, it was years ago when I used an ACV rinse. I'm sorry I can't be much help here.
I was thinking about adding some to the water phase
Thanks Tara
Heyy for the calculations to get $12.28 , $12.28/226.8grams = 0.05414462 x 226.8 = $12.28
Quick question because I’m confused so , now that I have all my cost of 1 gram calculated... what do I do with that information? Do I add all of them up and that’s the material cost? Or.. am I only using the chart to know how much 1 gram cost per ingredient?
She also has another video about how to price items, it's like part 2 to this video
What if I only ordered one item how would I calculate the shipping?
Add the shipping cost into the one item you bought
Wouldn’t the weight (in grams) be different for the green tea extract since it’s liquid ounces whereas the allantoin is weight ounces? Or does FSS measure/label all ingredients by weight?
It’s all measured by weight :)
Thanks for the reply! That’s good to know!!
Literally just asked this question, am I just to google fluid oz to grams?
Windows has excel for graphs