@@peacheskong2245 if you think about it's not really because you are buying the materials and Spending your time making it and it wouldn't be fair to yourself to charge way to less than how much it took to make the item because then you would be cheating your own self out of the hard work you did.
You always come through with great content. You're amazing! We are launching our product on Saturday and have been watching your videos long before we started. Keep going with the great content, it's appreciated! ~Chyna
This was so helpful. I had been doing cost to make item and then adding it what I wanted my profit margin to be. I wasn’t adding in overhead or labor, or considering wholesalers retail. I went back to my first year and my overhead was high bc of equipment, so when I divided it by products sold, it was $7.20 per product! Seems like way too much to add on. I know this year will be lower, but it will still be high as I am still investing. Very glad I found your channel.
You are so sweet and very Genius!! Thank you so much for making life easier for so many new entrepreneurs out there who have just started out and looking for these tips and advice. Thank you
Very helpful. I charge a price I'm happy with...even though some potential customers may think my products prices are high - they take a lot of time to make. Each item is handmade. We have to make sure we put our products infront of the right buyer and show buyers why they 'need' our products. Thanks for the Etsy calculator x
how did you calculate your overhead cost in the very beginning of your business? I am about to launch my business next month so I have no idea how many items I will sell in my first year.
Thankyou Tara Lee for this detailed and informative video. I am soon going to start my handmade soap and lip balm business. After watching your video things are clear for me now about how to price the product. Thank you once again
You are a LIFESAVER!!! I want you to know that I sincerely appreciate your videos, and willingness to share your knowledge. I am trying to learn as much as possible as I start my small business. You are amazing! Thank you so much!
Thank you so much Tara ❤️ I was thinking to start my Cosmetic Business and searching for proper guide then I came to your video nd I realized I'm on right place.... I am watching ur all videos and gonna make my brand soon.... A big fan from Tunisia TN
I created my own hair growth formula but ofcourse there are only a million hair growth products on the market. As a bald man for nearly 20 years I know the majority of them are expensive and don’t work. But I have been using mine on myself so I know it works
Great video. That said, every business will have their own unique formula. For example, a high-end company using this formula may destroy their brand if the price comes out too low.
Hello, concerning the overhead. You calculated based on when you've done the business for a while, what if you're just starting and you you've gotten all the equipment you need (overhead) but since you just started you can't divide it by your sales cuz you've hardly made any sales. In fact you're still trying to figure out how much your gonna price it for to start selling. So my question is, what do you do then? How did you figure out your price when you were just starting your business? Cuz I'm just starting I don't think this question can fully be answered in the comments so could you please please make a video answering these questions and explaining? It would really help. I'm really looking forward to your reply, thank you
Hi, what I do is slightly update the product (maybe packaging or add another ingredient) and reintroduce it with the new prices. I usually wait until the older one is sold out so there are no price clashes. Hope this helps!
Hey tara i know this is very long and difficult to do, but do you mind doing an upgrade video on this? do you still go about this the same way or have you changed the way u price your products now
@@TaraLeee we would love an update! would any subscriptions (shopify, canva, etc.) be considered overhead ? also, would your startup cost be considered overhead as well? it’s soo hard to price things when you’re first starting, so if you do an update i would love if you could include a few more tips about starting :) i love your channel btw 💕
This is interesting. I have spent 1000s on ingredients, as I only buy sustainable, vegan, good quality ingredients and I make great products-if they are not 100% I discard them or give them away, but nobody buys anything unless it is cheap, as in, cost price. They always say it is great, but when I raise my prices to include a small fee for my hours and hours of work they don't buy.
This is such a great video! I’ve watched it twice now, I’m a new business owner (soap and stuffs) and don’t have a year or 2 to calculate overhead, how would I factor that in now so I wouldn’t have to raise my prices later? Thanks, appreciate you :)
OMG ! THANK YOU , THANK YOU ! So much for making this video. I too make homemade products, and I didn't know how to price them. Who do you recommend for a organic soap supplier that does not use glycerin or vegetable oil?
Hi Tara! I know I'm a little late to getting to this video, but I'm confused a bit. I'm just starting out, I gave myself an overhead cost of 150 for the rest of this year, but I haven't sold any items yet, although I plan to in late November. Should I do the formula for finding the overhead expenses based on what I plan to sell or hold off for now because I haven't sold anything. I want to have accurate pricing but I also don't want to base it off numbers that could still potentially change. Looking forward to hearing back from you!
I am very grateful for you and your videos. You are truly a blessing. I am in the process of starting my own skin care business. I have yet to start a youtube channel. How did you get started here and what was your challenges?
Best practice is to look at all of your ingredients for your product and see what the manufacturer recommended life is for each one. Whichever has the least or shortest shelf life should be your completed product shelf life....
Hello your videos are amazing and right on time. I do have a question regarding oils, being im just starting out when it comes to oils(carrier) does it matter if they are "kitchen" type oils(from grocery store) vs actual cosmetic type oils(from a cosmetic website)? I have used Grapeseed oil by the pompeian brand which i get a 24oz for roughly 5.00 or so but have also been looking into ones on websites.
My name is Bailey and I am starting an Etsy shop called HighVibesGemini to sell crystals and handpainted boxes. I’m having trouble with pricing my boxes. They take me a few hours to make including sketching the design and painting but not including drying times. I’ve tried the pricing formulas and that makes my products very expensive. If I pay myself 10 dollars an hour (which is less than minimum wage in my state) for 3-4 hours of work plus my supplies costs and mark that up that makes just one of my boxes priced at over 100 dollars. I’ve looked on Etsy for competition prices and the price range for similar handpainted boxes is much more affordable. I want to make my products some what affordable but also not sell myself short at the same time. I don’t know what to do and I’m worried the high prices for my boxes when I’m just starting out would ruin my chances at growing as a business. I work full time and I’ve put everything I have into starting up this business and I don’t want my obscene prices to tank that.
I somehow accidentally found your video (the body oil recipe one) and at first you catched me with your vibe (unicorn vibes) but yeah after I watched that video I was like wow she's the real deal. Like your contents, I know these clips quite old now but hey how are you doing?
The minimum wage in British Columbia Canada is 15.20 per hr. And shipping of goods is very expensive to my house. I live in the north. So my products are going to be expensive! Using this formula.
Oh TaraLee Amazing thank you so much I’m in Australia and our postage is huge but I’ve been seriously undercutting myself here this has been a fabulous video! I have emailed you and hope to get a reply soon
How do you know how much ingredients is in a product? Like for example I make a formula for a face wash but the formula makes more than 1 face wash. How do I know exactly how much ingredient of each product I put in that bottle if it fills more than one bottle? I hope this makes sense. Just trying to know how to price my product as accurate as possible. BTW I watch all your videos and the way you explain things really helps.
The way that I do it is I calculate how much it cost to make a large batch of product. So if I make a 500 gram batch of face wash and it costs me $10 to make it then that means 1 gram of face wash is $0.02. So if I am bottling up a 2 ounce bottle of face wash I times 0.02 by 60. Since 60 grams can fit in a 2 ounce bottle. Then I add in the price of the bottle/label etc. That is how I figure out the cost to make a product. & of course I add in labor cost and overhead costs as well, like I mentioned in the video. Hope this helped
Forgive me because I am trying to understand. I make quilts and homemade products here on the homestead and by this equation I should be charging $378 for a 42x42 quilt. That is insane to think about for me. How on earth do you get past the guilt of charging that much?
Hi Tara thank you so much. My only questions is - As a beginner, I am struggling to calculate the price of one item that I make as I have bought a whole load of items! One of them would determine how many pots I will get but the others would last over a long period of time.for a long time.
How do you go about adding in shipping costs for supplies? Especially because shipping costs will constantly differ with how much you order, where you order from etc.
Shannon Bednarz I think she meant the stuff for the shipping, like bubble mailers, bags to put your product in, business cards, Thankyou cards, whatever you wanna put in it, not the shipping cost as thts a separate cost and not in the product. If tht makes sense?
Hi Tara. Thank you very much for enlightening your viewers like me about such internal information. It is very helpful for new crafts producers who’s scratching their heads about how to set a fair price. It’s very useful and helpful. Wish you great success with your business. Bless you. :-)
This was incredibly helpful. I have been trying to figure this out for over a month now. You broke this down so that it was easy to understand. I am going to get started on this now and see what happened. Thank you!!
Hey Tara just to get more clarification, what is the reason for multiplying the labor+supplies by 2? Also, what it I'm just getting started and feel as if though I don't have an over head cost right now. Do I still add this into the formula? I have bought plenty of things just in the past month and am planning on selling my items at a local gym so I do have to figure out the wholsale price.
![[Special Clip] ATEEZ(에이티즈) 홍중 'Why Do You Love'](http://i.ytimg.com/vi/I6XYXQKN_pY/mqdefault.jpg)
I believe, Never Allow another person's budget determine your prices.
so true!
Tessie Dobey I agree a disagree cuz if they can find a cheaper price they r hooked in
Kind of inconsiderate towards your clients?🤔
@@peacheskong2245 if you think about it's not really because you are buying the materials and Spending your time making it and it wouldn't be fair to yourself to charge way to less than how much it took to make the item because then you would be cheating your own self out of the hard work you did.
Tessie Dobey my mama says the same thing!
You always come through with great content. You're amazing! We are launching our product on Saturday and have been watching your videos long before we started. Keep going with the great content, it's appreciated! ~Chyna
I made liquid Castile soap tonight! I can’t wait til morning to see what it looks like! Thanks for your tutorials! Yours is the best I have found.
Omg! Your god sent. I’m getting ready to launch my lip gloss business and this was the last step I needed. Thank you sooo much for sharing. You rock!!
so glad i was able to help :)
Hope it's going great
This was so helpful. I had been doing cost to make item and then adding it what I wanted my profit margin to be. I wasn’t adding in overhead or labor, or considering wholesalers retail. I went back to my first year and my overhead was high bc of equipment, so when I divided it by products sold, it was $7.20 per product! Seems like way too much to add on. I know this year will be lower, but it will still be high as I am still investing. Very glad I found your channel.
Can u help me understand the labor part if u don't mind me asking
@@secretbeautes1 what don’t you understand? maybe i can help
You are so sweet and very Genius!! Thank you so much for making life easier for so many new entrepreneurs out there who have just started out and looking for these tips and advice. Thank you
I'm actually working on opening my etsy and I was so lost about pricings and fees... and i found your videos and omg it helped me so much! Tysm!!
Very helpful. I charge a price I'm happy with...even though some potential customers may think my products prices are high - they take a lot of time to make. Each item is handmade. We have to make sure we put our products infront of the right buyer and show buyers why they 'need' our products. Thanks for the Etsy calculator x
Totally true!! handmade products take a lot of time and patience. Glad you found my video helpful :)
how did you calculate your overhead cost in the very beginning of your business? I am about to launch my business next month so I have no idea how many items I will sell in my first year.
I don’t know how I found this channel ❤ This is my sign that God really wants me to start my business. This channel is Gold 😊 Your a blessing
Thanks this was very helpful! I am wanting to start a coffee body scrub business and need all the information I can get.
Hi Tara thank you so much for your video very helpful. but how do you calculate the supply cost that you came up with $1.50 can you please show me
Thank you so much for your formulation! It's overwhelming but VERY necessary.
Just found this channel. You're such an inspirational!
Thankyou Tara Lee for this detailed and informative video. I am soon going to start my handmade soap and lip balm business. After watching your video things are clear for me now about how to price the product. Thank you once again
You are a LIFESAVER!!! I want you to know that I sincerely appreciate your videos, and willingness to share your knowledge. I am trying to learn as much as possible as I start my small business. You are amazing! Thank you so much!
Thanks Tara!!! Your videos are really helping me especially with pricing and preparation.
I really love your channel! So genuine and informative!I always learn something new.
Thank you so much Tara ❤️ I was thinking to start my Cosmetic Business and searching for proper guide then I came to your video nd I realized I'm on right place.... I am watching ur all videos and gonna make my brand soon....
A big fan from Tunisia TN
I created my own hair growth formula but ofcourse there are only a million hair growth products on the market. As a bald man for nearly 20 years I know the majority of them are expensive and don’t work. But I have been using mine on myself so I know it works
Great video. That said, every business will have their own unique formula. For example, a high-end company using this formula may destroy their brand if the price comes out too low.
Your doing a great job. Your videos are easy to understand & quite helpful. Thank You. :)
This is very informative, thank you. And your cat is super cute😍
I needed this video ❤️ I can’t believe I didn’t come across your videos last year
Hello, concerning the overhead. You calculated based on when you've done the business for a while, what if you're just starting and you you've gotten all the equipment you need (overhead) but since you just started you can't divide it by your sales cuz you've hardly made any sales. In fact you're still trying to figure out how much your gonna price it for to start selling. So my question is, what do you do then? How did you figure out your price when you were just starting your business? Cuz I'm just starting
I don't think this question can fully be answered in the comments so could you please please make a video answering these questions and explaining? It would really help. I'm really looking forward to your reply, thank you
How do you adjust you prices when you've already started low and now you need to raise the price?
Hi, what I do is slightly update the product (maybe packaging or add another ingredient) and reintroduce it with the new prices. I usually wait until the older one is sold out so there are no price clashes. Hope this helps!
I just started so I have to go through the cost so far. Haven’t gotten to the boxes and bubble wrap yet.
Awesome job on doing skin care products and good video on handmade goods
Great information Tara! Thank you SO much!
This is very helpful, thanks for sharing xx
I'm so happy you found it helpful! :)
Hey tara i know this is very long and difficult to do, but do you mind doing an upgrade video on this? do you still go about this the same way or have you changed the way u price your products now
i still go by the same method.
i may still do an updated video though.😊
Oh great! Thank you! I’m recently repricing and I’m going with this method so I was just wondering
@@TaraLeee we would love an update! would any subscriptions (shopify, canva, etc.) be considered overhead ? also, would your startup cost be considered overhead as well? it’s soo hard to price things when you’re first starting, so if you do an update i would love if you could include a few more tips about starting :)
i love your channel btw 💕
Thank you very much! I was looking for this info for a long timeeeeee
I'm so glad you found my video helpful :)
@@TaraLeee I Love you Tara
ABSOLUTELY WONDERFUL! Thanks Lady T!
Super informative!!! Thank you for the breakdown!
You made that so simple to understand! Thank you so much!
Omg it was totally kismet that you posted this today. I'm pricing today for my first etsy biz. Thank youuu
This is interesting. I have spent 1000s on ingredients, as I only buy sustainable, vegan, good quality ingredients and I make great products-if they are not 100% I discard them or give them away, but nobody buys anything unless it is cheap, as in, cost price. They always say it is great, but when I raise my prices to include a small fee for my hours and hours of work they don't buy.
Great info. I’m about to binge watch your videos
Thank you Tara. God bless you
This is such a great video! I’ve watched it twice now, I’m a new business owner (soap and stuffs) and don’t have a year or 2 to calculate overhead, how would I factor that in now so I wouldn’t have to raise my prices later? Thanks, appreciate you :)
Thank you. Starting my business now
Have been seeking on Etsy for a year now and I really needed this thanks
Another great video! Thanks for sharing❤️
Really very useful.... I'm an indian bt i don't have any Indian youtubers making videos on these topics. Thanku so much for this..🙂
Thank you Tara for this video!. I really love your videos, there is always something to lean, thanks :)
Thank you Tara for your great knowledge sharing..Love from Malaysia.
good work TaraLee thanks for a great insight
OMG ! THANK YOU , THANK YOU ! So much for making this video. I too make homemade products, and I didn't know how to price them. Who do you recommend for a organic soap supplier that does not use glycerin or vegetable oil?
Hi Tara! I know I'm a little late to getting to this video, but I'm confused a bit. I'm just starting out, I gave myself an overhead cost of 150 for the rest of this year, but I haven't sold any items yet, although I plan to in late November. Should I do the formula for finding the overhead expenses based on what I plan to sell or hold off for now because I haven't sold anything. I want to have accurate pricing but I also don't want to base it off numbers that could still potentially change. Looking forward to hearing back from you!
I am very grateful for you and your videos. You are truly a blessing. I am in the process of starting my own skin care business. I have yet to start a youtube channel. How did you get started here and what was your challenges?
good luck to you!
I am hooked thanks i just started and I was hang up on price
Tara,how do you calculate the expiration date on product?
Best practice is to look at all of your ingredients for your product and see what the manufacturer recommended life is for each one. Whichever has the least or shortest shelf life should be your completed product shelf life....
Excellent information. Thank you.
This information is gold! Thx
Very informative, thanks.
Hello your videos are amazing and right on time. I do have a question regarding oils, being im just starting out when it comes to oils(carrier) does it matter if they are "kitchen" type oils(from grocery store) vs actual cosmetic type oils(from a cosmetic website)? I have used Grapeseed oil by the pompeian brand which i get a 24oz for roughly 5.00 or so but have also been looking into ones on websites.
My name is Bailey and I am starting an Etsy shop called HighVibesGemini to sell crystals and handpainted boxes. I’m having trouble with pricing my boxes. They take me a few hours to make including sketching the design and painting but not including drying times. I’ve tried the pricing formulas and that makes my products very expensive. If I pay myself 10 dollars an hour (which is less than minimum wage in my state) for 3-4 hours of work plus my supplies costs and mark that up that makes just one of my boxes priced at over 100 dollars. I’ve looked on Etsy for competition prices and the price range for similar handpainted boxes is much more affordable. I want to make my products some what affordable but also not sell myself short at the same time. I don’t know what to do and I’m worried the high prices for my boxes when I’m just starting out would ruin my chances at growing as a business. I work full time and I’ve put everything I have into starting up this business and I don’t want my obscene prices to tank that.
I somehow accidentally found your video (the body oil recipe one) and at first you catched me with your vibe (unicorn vibes) but yeah after I watched that video I was like wow she's the real deal. Like your contents, I know these clips quite old now but hey how are you doing?
Thank you so much, do you consider each empty jar or plastic container in the supplies or in the overhead?
suppliers. goes into the cost of item
The minimum wage in British Columbia Canada is 15.20 per hr. And shipping of goods is very expensive to my house. I live in the north. So my products are going to be expensive! Using this formula.
I am making origami scrapbook kinda journal of everything you say and that blog. that taught you
Thanks for the great info, Love Your cat 🐈❤️
Thank you so much this was very helpful!!!
Oh TaraLee
Amazing thank you so much I’m in Australia and our postage is huge but I’ve been seriously undercutting myself here this has been a fabulous video!
I have emailed you and hope to get a reply soon
thank this helped a lot
Great information! I am starting off my business what number should I be putting in for my overhead cost? This is all new to me.
I found your channel today and I am hooked.
How do you know how much ingredients is in a product? Like for example I make a formula for a face wash but the formula makes more than 1 face wash. How do I know exactly how much ingredient of each product I put in that bottle if it fills more than one bottle? I hope this makes sense. Just trying to know how to price my product as accurate as possible. BTW I watch all your videos and the way you explain things really helps.
The way that I do it is I calculate how much it cost to make a large batch of product. So if I make a 500 gram batch of face wash and it costs me $10 to make it then that means 1 gram of face wash is $0.02. So if I am bottling up a 2 ounce bottle of face wash I times 0.02 by 60. Since 60 grams can fit in a 2 ounce bottle. Then I add in the price of the bottle/label etc. That is how I figure out the cost to make a product. & of course I add in labor cost and overhead costs as well, like I mentioned in the video.
Hope this helped
New subscriber! This is very helpful!! What’s your background?
This is so helpful. Thank you
throughout great... & last 2 mins awesome
Love this vieo I really found it very helpful!
Thanks very informative.
You're the best I love you !! Thank You so much!!!
Where do you learn making skincare products?
OK, so, I've done my calculations, and it says I'll need to charge £7.53 for my lip balms. I need feedback. Does that seem too high? For lip balm?
Thank you dear that was useful ❤❤❤❤
How would I would do this if I'm selling different sizes for example like 1oz 4oz and 8oz how can I do the prices for those
Forgive me because I am trying to understand. I make quilts and homemade products here on the homestead and by this equation I should be charging $378 for a 42x42 quilt. That is insane to think about for me. How on earth do you get past the guilt of charging that much?
Hey Tara ! I like your video. Take love from Bangladesh.
Hi Tara thank you so much. My only questions is - As a beginner, I am struggling to calculate the price of one item that I make as I have bought a whole load of items! One of them would determine how many pots I will get but the others would last over a long period of time.for a long time.
How do you go about adding in shipping costs for supplies? Especially because shipping costs will constantly differ with how much you order, where you order from etc.
Shannon Bednarz I think she meant the stuff for the shipping, like bubble mailers, bags to put your product in, business cards, Thankyou cards, whatever you wanna put in it, not the shipping cost as thts a separate cost and not in the product. If tht makes sense?
Ima going to have to rewatch the video 😅 but this is done for every product correct?
Hi Tara. Thank you very much for enlightening your viewers like me about such internal information. It is very helpful for new crafts producers who’s scratching their heads about how to set a fair price. It’s very useful and helpful. Wish you great success with your business. Bless you. :-)
Wooooww golden information
Thank you Tara lee
Can you teach me formulation by training course
Love love love ❤️ Lots of love to you 🙂
lots of love to you!!
@@TaraLeee did you paint your nails White
@@TaraLeee much Love to you 💛💙💜💚❤💖🖤💘
Hi Tara, is the equipment that's used to make the product considered supplies or overhead?
Thanks
If you are a startup business how would u know how much products ur selling per year? And u wouldnt know how much taxes u will pay per year thanks
Thanks..before watching this I was so confused
what if you don't have a shipping price then how do u calculate
Fantastic thank you
Thank you
Good on you
Super cool video!
This was incredibly helpful. I have been trying to figure this out for over a month now. You broke this down so that it was easy to understand. I am going to get started on this now and see what happened. Thank you!!
How do you calculate if you private label a certain item for your line ?
Did you find out?
Thank you teraa for inspiring me but I can't do shampoo it cost me too much difference in currency plus shipping :(
What if you haven’t sold any products yet because your trying to price your products?so you won’t have anything to divide your overhead by.
Hey Tara just to get more clarification, what is the reason for multiplying the labor+supplies by 2? Also, what it I'm just getting started and feel as if though I don't have an over head cost right now. Do I still add this into the formula? I have bought plenty of things just in the past month and am planning on selling my items at a local gym so I do have to figure out the wholsale price.
It's just so that you are earning enough profit for your product.
@@didigogo139can you confirm please @taralee
Thank you ! And where did you say i can get a paper copy from you 🧡