Calculate Break-Even

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FWD: Artisan Soap Cost Breakdown - Need Your Thoughts

---------- Forwarded message ----------
From: Sarah Martinez <sarah@handmadesoaps.com>
To: Mike Chen <mike@supplierplus.com>
Date: Mon, Dec 11, 2023 at 2:15 PM
Subject: Artisan Soap Cost Breakdown - Need Your Thoughts

Hi Mike,

Thanks for the quote. Here's what I'm working with for my new lavender soap line:

Materials per bar:
- Olive oil: $0.85
- Coconut oil: $0.65
- Lavender oil: $1.20
- Lye and additives: $0.45
- Packaging: $0.75

Fixed monthly costs:
- Studio rent: $800
- Insurance: $150
- Utilities: $200
- Equipment depreciation: $100

I'm thinking of pricing at $12 per bar. Does this make sense? I can realistically make and sell 200 bars per month to start, maybe 400 if things go well.

Let me know your thoughts!

Sarah