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Costing Ingredients
Hi,
I am making a facial oil where most ingredients are costed in £/L. I am also using an online calculator where in enter the total batch volume required (in my case in ml) and it converts from % to oz, lbs, ml and g.
I am a little confused by how I should work out my costing as some of my units are in ml and some in g and I know that weight (grams) is the most accurate way of costing your formula.
I have a feeling I need the specific gravity (SG) of each of the oils?
Someone please guide me in the right direction!
Thank you.
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5 Replies
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Are you trying to figure out the quantity that you need to order from your suppliers? Or are you trying, from a business/marketing perspective, to accurately figure out how much each bottle of oil is going to cost you to fabricate so you can plan how to price your product? From what I see online, both coconut oil and olive oil weigh approximately 10% less in grams than water does. In other words, 100 mL of each weighs approximately 90g. If you’re planning to blend a bunch of oils (carrier — not essential) together, I think that this is a safe assumption. But only you can decide whether you need an extremely precise figure. The most expensive carrier oil that I know of, food-grade raw organic almond oil, costs <4GBP for 30ml, so if your question relates to pricing, I don’t think being off by 5-10% is going to hurt you much.
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The most important thing to do is to make sure you have all the units the same.
If you want to know how much a bottle costs in terms of £/L then all the units should be converted to £/L.
If some of the units are £/g then you’ll need to convert that to £/L. To do that, you are correct you will need the specific gravity of whatever material you are using.
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Thank you so much Perry and Suswang8 for your help. I really do appreciate it.
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On the back of my previous I have another question relating to accounting for delivery costs of raw materials in my costing and also accounting for fixed costs (such as stability testing or challenge testing. How can I make sure my costing covers these please?
Thank you.
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@MaisR - You’ll have to add the shipping costs to the £/g (or £/L) but you’ll need to divide it over the whole shipment.
Suppose you have 100g of an ingredient that costs £10/g. (total = 100*10 = £1000)
Shipping costs are £20. £20/100g = £0.2/gSo, now your ingredient cost is really £10.2/g
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