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Formulating a cleansing oil for the very first time
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Hello everyone
Im working on the cost of my product and want to understand something.
If in my formula for example there isargan oil 40%
Baobab oil 5%
Almond oil 2%
CCT 40%
vitamin E 0.2%
Sorbeth 30 10%
phenoxyethanol 2.3%To calculate the cost so the lab doesnt lie to me, i can ask ok how much is argan oil per litre, how much is baobab oil per liter
So lets say that the capacity of my cleansing oil is: 100ml and the cost of argan oil per litrer is 100usd for instance and they put 40% argan oil meaning 40% of 100ml which means 40ml worth of argan oil.So the cost of 40Ml of argan oil is 4usd, so basically i do this for all pther ingredients to determine the cost right, is this correct? So this means that the arhan oil in mly cleanser or whatever is worth 4USD.Also the lab hasnt given me costing yet and i dont know if this is unprofessional on their end or its because they are waiting to receive the ingredeints prepare the samples then tell me the costing/Someone told me they should give me the cost irrespective of them preparing the samples:they should ask the supplier overseas how much this costs and for them to ask that question they must first revert to me and ask me:<Ghita how many cleansing oil do you want to produce so when they know for instance i want to start wiht 200 bottles they will know how miuhc they will ask cus they know in each bottle how much they put of each ingredient and so they ll determine the cost.But they didnt ask me that yet; they say they are wating for samples which i find bogus, they first need to ask me!!
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You should have an idea of the basics on costs. Even homemakers do this - I know it’s the first thing I do when I am formulating. Do you know how to use Excel? If so you just need to do a basic spreadsheet. I have one for each formula and modify as I go and sway ingredients. For me I always include the total cost of my products (even though only for home use). I have a spreadsheet with a list of all the ingredients I have and the amount of each and what cost me with freight included. I then break that down to the cot per gram. No doubt the lab or whatever producing your product would be buying in bulk and therefore have much reduced costs that they may not necessarily pass onto you and they also have include all their overheads, equipment, packaging etc, staff pay, payroll tax or whatever taxes your country has warehousing, distribution, other costs like electricity, water, products and equipment needed for cleaning and sterilizing to name a few. I think you need to do some basic making yourself to understand the costs involved before you go get lab making stuff in bulk. Anyway, if you choose to go down the road with the lab first once you get their costs you need to analyze and breakdown each component or they should provide this for you. Sorry if my comments seem harsh but I was a Business Analyst before I retired and took up my skin making hobby (I worked in a lab years ago as one of my first jobs for many years). It would be best if you did a business study, look at all yours costs and do a basic P&L on your proposed business before making anything - you may find you lose more money than you may potentially make especially in first few years - even if it is eventually a success. It is one thing making products at home or for a small client base to embarking on a full scale business without a business background. Good luck.
Example of my simple stock take spreadsheet (have more columns but can’t show in this format). I believe Google have free spreadsheet similar if you don’t have access or know how to use Excel.
Ingredient Size (ml) Supplier Date ordered Cost Shipping
costTotal Cost Cost per ml Oil type 1000 xxx 11/09/22 $132 $8.00 $140 $0.1400 -
Hello @Squinny, thanks a lot for your detailed answer.
Im actually outsourcing the manufacturing to a lab.
So my costs are:Cost of product itself ( cleansing oil or face scrub or shampoo or whatever)
Cost of primary packaging
cost of secondary packaging
cost of stickers
cost of filling by the lab
END OF DIRECT COSTSThen i have other costs such as sponsored ads, rent where ill be warehousing my products;
What bothers me is that i asked the lab for the costs and they said they will give me costs once they prepare the samples for me because for each product i want.Lets say i want a face gel , so first they send me the sample as per my requirement with my formulation; if i validate then they will determine the cost which somehow makes sense i think/Imagine if they send me a sample and i want them to change a texture or add an ingredient so this will affect the cost of the product; so i believe i first determine the formulation i like and once i do that they give me the costs, is this a good way Squinny?
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Hello everyone
Is it possible to have a cleanser that doesnt rinse off? -
@Ghita37 - I have sent a message to your inbox. Maybe in first instance contact someone like New Directions Australia (they also do International enquiries) - click on the services tab and you will see a button for international. They may give you some idea of what they do and how much it all costs and then you can compare or find a Similar Business where you are rather than just a Lab. However, I think before you go down the road of manufacturing, selling, distribution etc you make some products that you are happy to sell and this takes time. Start with 1 product and concentrate on that first. In the meantime, get yourself skilled up to run a Business with all it entails. Note that the Economy is struggling worldwide so launching a new Business will have more challenges than in a better Economic Climate. Even well-established companies in general had lower profits (some substantial and may had losses) in 2022. Cheers and good luck in 2023.
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Ghita37 said:What bothers me is that i asked the lab for the costs and they said they will give me costs once they prepare the samples for me because for each product i want.Lets say i want a face gel , so first they send me the sample as per my requirement with my formulation; if i validate then they will determine the cost which somehow makes sense i think/Imagine if they send me a sample and i want them to change a texture or add an ingredient so this will affect the cost of the product; so i believe i first determine the formulation i like and once i do that they give me the costs, is this a good way Squinny?It is how most of outsourcing manufacturing works I believe.
For example, if I want to make hand cream.
I have to choose
1. Which formula, weather it is stock formula or developing one.
2. How much I want, eg 100 ml 5000 pieces = 500000 ml
3. choose packaging, … etc.After you approve the sample, they can work on their production cost then they will give you price quotation.
As @Squinny suggested - make sure you calculate every costs, and plan your business well.
Ghita37 said:argan oil 40%
Baobab oil 5%
Almond oil 2%
CCT 40%
vitamin E 0.2%
Sorbeth 30 10%
phenoxyethanol 2.3%@MarkBroussard gave you a very good formula structure, I recon you follow that. Or if you want to make this formula it’s your decision.
Squinny said:@Ghita37 - I have sent a message to your inbox. Maybe in first instance contact someone like New Directions Australia (they also do International enquiries) - click on the services tab and you will see a button for international. They may give you some idea of what they do and how much it all costs and then you can compare or find a Similar Business where you are rather than just a Lab. However, I think before you go down the road of manufacturing, selling, distribution etc you make some products that you are happy to sell and this takes time. Start with 1 product and concentrate on that first. In the meantime, get yourself skilled up to run a Business with all it entails. Note that the Economy is struggling worldwide so launching a new Business will have more challenges than in a better Economic Climate. Even well-established companies in general had lower profits (some substantial and may had losses) in 2022. Cheers and good luck in 2023.Great advice.
Ghita37 said:Hello everyone
Is it possible to have a cleanser that doesnt rinse off?Micellar water doesn’t need to be rinsed off.
Cheers.
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