{"id":56,"date":"2026-03-16T18:52:50","date_gmt":"2026-03-16T17:52:50","guid":{"rendered":"http:\/\/www.7virides.com\/cs\/podnikani\/cenotvorba\/"},"modified":"2026-03-25T11:19:30","modified_gmt":"2026-03-25T10:19:30","slug":"cenotvorba","status":"publish","type":"page","link":"https:\/\/www.7virides.com\/en\/podnikani\/cenotvorba\/","title":{"rendered":"Soap pricing: how to set a price that covers costs and generates profit"},"content":{"rendered":"<blockquote>\n<p><strong>TL;DR:<\/strong> The correct price is calculated as: (material + labour + overhead + regulatory costs) \/ (1 - % margin). Example: lavender soap 85 g with a cost of 162 CZK and 25% margin = 217 CZK. Hand soap does not compete with Dove's price - it targets a different segment. Labour is the most important ingredient.<\/p>\n<\/blockquote>\n<p>Pricing is an area where most start-up manufacturers make mistakes - either they set the price too low (undervaluing their own work) or too high without any support in the value of the product. This page provides a specific pricing framework with formulas and examples.<\/p>\n<h2 id=\"proc-rucni-mydlo-nemuze-konkurovat-prumyslovemu\">Why hand soap can't compete with industrial soap<\/h2>\n<h3 id=\"porovnani-segmentu-a-ceny\">Comparison of segments and prices<\/h3>\n<p>Industrial soap (Dove, Palmolive) is produced in volumes of millions of units with capital intensity, automation and synthetic components. The purchase price per piece in the shop is 30-60 CZK.<\/p>\n<p>Artisan CP soap with 4-6 weeks of aging, natural oils and individual production can't compete with this price - and shouldn't. These are different segments. A customer who buys a handmade soap for 200 CZK is not buying \"soap&amp;#8220they are buying a story, localness, ingredients or a gift experience.<\/p>\n<h2 id=\"jaky-je-vzorec-pro-kalkulaci-ceny\">What is the formula for calculating the price?<\/h2>\n<h3 id=\"pet-slozek-ktere-tvori-prodejni-cenu\">The five components that make up the selling price<\/h3>\n<p>The basic calculation consists of five components:<\/p>\n<pre><code>Price = Material costs + Labour + Overhead + Regulatory costs + Profit margin\n<\/code><\/pre>\n<h4 id=\"1-materialove-naklady-cogs-cost-of-goods-sold\">1. Cost of Goods Sold (COGS)<\/h4>\n<p>It includes everything that physically enters the product or its packaging:<\/p>\n<ul>\n<li>Raw materials: oils, NaOH, water, additives, EO\/FO, dyes<\/li>\n<li>Packaging: paper, label, ribbon, box<\/li>\n<li>Consumables: baking paper for moulds, disposable containers<\/li>\n<\/ul>\n<p><strong>Calculation of raw material costs per piece:<\/strong><\/p>\n<p>Example for lavender soap (1 kg of oils, yield 10-12 pieces \u00d7 85 g):<\/p>\n<table>\n<thead>\n<tr>\n<th>Raw material<\/th>\n<th>Amount<\/th>\n<th>Price\/kg<\/th>\n<th>Cost<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Olive oil<\/td>\n<td>500 g<\/td>\n<td>80 CZK\/kg<\/td>\n<td>CZK 40<\/td>\n<\/tr>\n<tr>\n<td>Coconut oil<\/td>\n<td>300 g<\/td>\n<td>60 CZK\/kg<\/td>\n<td>18 K\u010d<\/td>\n<\/tr>\n<tr>\n<td>Castor oil<\/td>\n<td>100 g<\/td>\n<td>180 CZK\/kg<\/td>\n<td>18 K\u010d<\/td>\n<\/tr>\n<tr>\n<td>Shea butter<\/td>\n<td>100 g<\/td>\n<td>200 CZK\/kg<\/td>\n<td>CZK 20<\/td>\n<\/tr>\n<tr>\n<td>NaOH<\/td>\n<td>150 g<\/td>\n<td>50 CZK\/kg<\/td>\n<td>7,50 CZK<\/td>\n<\/tr>\n<tr>\n<td>Lavender EO (3%)<\/td>\n<td>30 g<\/td>\n<td>800 CZK\/kg<\/td>\n<td>24 K\u010d<\/td>\n<\/tr>\n<tr>\n<td>Packaging (10\u00d7 paper + label)<\/td>\n<td>\u2014<\/td>\n<td>5 CZK\/piece<\/td>\n<td>50 CZK<\/td>\n<\/tr>\n<tr>\n<td><strong>Total per batch (10 pieces)<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><strong>177,50 CZK<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Material costs\/piece<\/strong><\/td>\n<td><\/td>\n<td><\/td>\n<td><strong>~17,75 K\u010d<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h4 id=\"2-prace\">2. Thesis<\/h4>\n<p>Artisan soap production takes 1-3 hours (preparation, production, cleaning) + 10 minutes\/piece for packaging. For 1 kg batch:<\/p>\n<ul>\n<li>Production: 2 hours \u00d7 your hourly rate<\/li>\n<li>Package (10 pieces): 10 \u00d7 10 min = 1.67 hours \u00d7 rate<\/li>\n<\/ul>\n<p><strong>What rate?<\/strong> Minimum 200-300 CZK\/hour for skilled craft production. A lower rate undervalues your work.<\/p>\n<p>Example at a rate of 250 CZK\/hour:<\/p>\n<ul>\n<li>Production: 2 h \u00d7 250 = 500 CZK<\/li>\n<li>Package: 1,67 h \u00d7 250 = 418 CZK<\/li>\n<li>Total work for the batch: 918 K\u010d<\/li>\n<li>Work\/piece: 91,80 CZK<\/li>\n<\/ul>\n<h4 id=\"3-rezie-overhead\">3. Overhead<\/h4>\n<p>Includes costs that cannot be allocated to a single product but must be included:<\/p>\n<ul>\n<li>Energy (electricity, water): approx. 10-20 CZK per bag<\/li>\n<li>Wear and tear of equipment (moulds, mixer, scale - depreciation): approx. 5-10 CZK\/ roll<\/li>\n<li>Insurance, space rental (if applicable)<\/li>\n<li>Health and social insurance for self-employed persons: break down to the expected annual volume<\/li>\n<\/ul>\n<p>Example: health + social 40 000 CZK\/year, 200 bags\/year = 200 CZK\/bag = 20 CZK\/piece.<\/p>\n<h4 id=\"4-regulatorni-naklady-amortizace\">4. Regulatory costs (amortisation)<\/h4>\n<p>CPSR for 10 000 CZK amortized over 3 years at 100 pieces\/year = 10 000 \/ (300 pieces) = 33 CZK\/piece.<\/p>\n<h4 id=\"5-ziskova-marze\">5. Profit margin<\/h4>\n<p>Profit (not income) is what is left after all costs have been deducted. For sustainable production, we recommend a minimum margin of 20-30% of the selling price.<\/p>\n<p><strong>Formula:<\/strong> Selling price = Total cost \/ (1 &#8211; margin %)<\/p>\n<h2 id=\"prakticky-priklad-kompletni-kalkulace\">Practical example: complete calculation<\/h2>\n<h3 id=\"levandulove-mydlo-85-g-krok-za-krokem\">Lavender soap 85 g - step by step<\/h3>\n<table>\n<thead>\n<tr>\n<th>Folder<\/th>\n<th>CZK\/piece<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Material costs<\/td>\n<td>17,75 K\u010d<\/td>\n<\/tr>\n<tr>\n<td>Jobs<\/td>\n<td>91,80 K\u010d<\/td>\n<\/tr>\n<tr>\n<td>Directed by<\/td>\n<td>CZK 20<\/td>\n<\/tr>\n<tr>\n<td>Regulatory costs (amort.)<\/td>\n<td>33 K\u010d<\/td>\n<\/tr>\n<tr>\n<td><strong>Total cost<\/strong><\/td>\n<td><strong>162,55 CZK<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>At 25% margin: 162.55 \/ (1 &#8211; 0.25) = <strong>217 CZK\/piece<\/strong><\/p>\n<p><strong>Recommended selling price: 220-250 CZK<\/strong> (rounding, price anchor).<\/p>\n<h2 id=\"ruzne-ceny-pro-ruzne-kanaly\">Different prices for different channels<\/h2>\n<h3 id=\"velkoobchodni-vs-maloobchodni\">Wholesale vs. retail<\/h3>\n<p>If you supply to stores or spas, the wholesale price is usually 50-60% of the retail price. At retail 220 CZK = wholesale ~100-130 CZK.<\/p>\n<p>Check that the wholesale price still covers your costs and maintains at least a minimum margin.<\/p>\n<p><strong>Warning:<\/strong> Many small manufacturers accept wholesale orders with prices that do not cover their actual costs - they undervalue the work. Do the math up front.<\/p>\n<h2 id=\"jak-vyuzit-psychologii-ceny\">How to use the psychology of price?<\/h2>\n<h3 id=\"prakticke-techniky\">Practical techniques<\/h3>\n<p><strong>Price anchoring:<\/strong> Offer a variant in different formats (85 g \u00d7 1 piece, gift set of 3 pieces). A customer who sees a set for 590 K\u010d as a \"saving&amp;#8220versus 3 \u00d7 220 K\u010d (660 K\u010d) will buy the set and your margin on the set may be higher.<\/p>\n<p><strong>Premium signal:<\/strong> Price communicates quality. Artisan soap for 99 CZK is questionable for the customer - why so cheap? At 190 K\u010d it's not premium - it could be supermarket natural cosmetics. At 220-280 K\u010d it is a clear premium signal.<\/p>\n<p><strong>Price vs. value:<\/strong> Add value (beautiful packaging, story of composition, certificate) and the price of 280 CZK will be acceptable to the customer.<\/p>\n<h2 id=\"jake-chyby-se-nejcasteji-delaji\">What are the most common mistakes?<\/h2>\n<h3 id=\"tri-nejnebezpecnejsi-chyby\">The three most dangerous mistakes<\/h3>\n<p><strong>Error 1: Failure to include work.<\/strong> \"Raw materials cost 20 CZK, I sell for 80 CZK, that's a good margin.&#8220; But 2 hours of work are not included - your real hourly fee is negative.<\/p>\n<p><strong>Error 2: Failure to include regulatory costs.<\/strong> The CPSR for CZK 10,000 must be amortised in the price of the product.<\/p>\n<p><strong>Error 3: Comparison with industrial soap.<\/strong> Premium segment customers don't look at Dove's price - they look at competing artisanal manufacturers.<\/p>\n<p><strong>Error 4: Discount as default.<\/strong> If you always sell at a discount, the base price loses credibility. Use discounts strategically (Black Friday, loyalty program, season).<\/p>\n<h2 id=\"ceny-pro-jednotlive-prodejni-kanaly\">Prices for individual sales channels<\/h2>\n<h3 id=\"srovneni-a-strategie\">Comparisons and strategies<\/h3>\n<table>\n<thead>\n<tr>\n<th>Channel<\/th>\n<th>Recommended price<\/th>\n<th>Note<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Own e-shop<\/td>\n<td>100% retail<\/td>\n<td>Full margin<\/td>\n<\/tr>\n<tr>\n<td>Farmers' Market<\/td>\n<td>100% retail<\/td>\n<td>Direct contact increases sales<\/td>\n<\/tr>\n<tr>\n<td>Etsy \/ Folksy<\/td>\n<td>100% + fees (approximately 10%)<\/td>\n<td>Include platform fees<\/td>\n<\/tr>\n<tr>\n<td>Instagram \/ TikTok shop<\/td>\n<td>100% + fulfillment<\/td>\n<td>Keep an eye on transport costs<\/td>\n<\/tr>\n<tr>\n<td>Wholesale (shops, spa)<\/td>\n<td>50-60% retail<\/td>\n<td>Check the margin<\/td>\n<\/tr>\n<tr>\n<td>Gift sets<\/td>\n<td>110-120 % of the value of the pieces<\/td>\n<td>Premium packaging = higher value<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"caste-otazky\">Frequently asked questions<\/h2>\n<p><strong>What margin should I have?<\/strong> At least 20-25% to cover all costs. Ideally 30% for a healthy reserve and reinvestment.<\/p>\n<p><strong>If a competitor sells lavender for 150 CZK, should I look?<\/strong> Not necessarily. It may be an inferior product quality, or the manufacturer undercutting their work. Stick to your calculation - if it covers your costs, your price is right.<\/p>\n<p><strong>How should the price differ online vs. physically on the market?<\/strong> The price should be the same. Online you have higher shipping costs, physically you have time costs. It compensates.<\/p>\n<p><strong>What if I don't want to bid up the price, but I want a higher margin?<\/strong> Reduce costs: more efficient production (more pieces per batch), cheaper packaging, lower energy costs. But never compromise on quality or your work.<\/p>\n<p><strong>As a beginner, I'm afraid to set the price too high. What should I do?<\/strong> Calculate your calculation using this guide. Then check it with other manufacturers or a mentor. Trust your numbers - they're not just your words, they're your costs.<\/p>\n<p><strong>See also:<\/strong><\/p>\n<ul>\n<li><a href=\"\/en\/selling-handmade-soap\/soap-making-costs\/\">Cost of legal production<\/a> - overview of regulatory costs<\/li>\n<li><a href=\"\/en\/selling-handmade-soap\/where-to-sell-handmade-soap\/\">Where to sell soap<\/a> - overview of sales channels<\/li>\n<li><a href=\"\/en\/selling-handmade-soap\/soap-photography\/\">Photos of soap<\/a> - how to take photos to increase sales<\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>TL;DR: Spr\u00e1vn\u00e1 cena se vypo\u010d\u00edt\u00e1 jako: (materi\u00e1l + pr\u00e1ce + re\u017eie + regulatorn\u00ed n\u00e1klady) \/ (1 \u2212 mar\u017ee %). P\u0159\u00edklad: [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"parent":19,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-56","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/pages\/56","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/types\/page"}],"replies":[{"embeddable":true,"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/comments?post=56"}],"version-history":[{"count":1,"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/pages\/56\/revisions"}],"predecessor-version":[{"id":159,"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/pages\/56\/revisions\/159"}],"up":[{"embeddable":true,"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/pages\/19"}],"wp:attachment":[{"href":"https:\/\/www.7virides.com\/en\/wp-json\/wp\/v2\/media?parent=56"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}