![How to plan and track the budget of your moisturizer brand [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-4_edd68a6a-a01c-4d41-b9c2-c5be032b2525.png?v=1715856416&width=1100)
If you don’t plan and track your skincare budget properly, you're setting yourself up for failure.
When we developed our strategy pack for skincare enthusiasts, we saw a lot of people struggling with their skincare routines and expenses.
They were disorganized, had no grasp of product usage, and were drowning in skincare troubles despite investing in high-quality products.
Don’t let this be you—stand out and achieve glowing skin.
We’ve created a small, free tool to help you get started: our Skincare Budget Tracker and Planner. Let’s turn your skincare routine around and set you on the path to radiant, healthy skin!
Get the budget tracker tailored for moisturizer brands
Most moisturizer brand founders don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for moisturizer brands
Here is an example of a (very) detailed budget for a moisturizer brand, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for office and production space | $3,000 | $36,000 |
| Electricity | Power consumption for production and office | $500 | $6,000 |
| Water | Water usage for production | $150 | $1,800 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $80 | $960 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Production Manager | 1 | $4,500 | $4,500 | $54,000 |
| Quality Control Specialist | 1 | $3,500 | $3,500 | $42,000 |
| Production Workers | 3 | $2,500 | $7,500 | $90,000 |
| Marketing Specialist | 1 | $3,000 | $3,000 | $36,000 |
| Customer Service Representatives | 2 | $2,000 | $4,000 | $48,000 |
| Office Manager | 1 | $3,000 | $3,000 | $36,000 |
3. Raw Materials & Production Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Ingredients | Essential oils, emulsifiers, preservatives, etc. | $8,000 | $96,000 |
| Packaging | Bottles, labels, boxes | $2,500 | $30,000 |
| Production Supplies | Mixing tools, safety gear, etc. | $500 | $6,000 |
| Cleaning Supplies | Sanitizers, detergents, etc. | $200 | $2,400 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $400 | $4,800 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, magazine ads | $250 | $3,000 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of production equipment | $300 | $3,600 |
| Uniforms | Staff uniforms and safety gear | $150 | $1,800 |
| Licenses & Permits | Health permits, business licenses, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $100 | $1,200 |
| Contingency Fund | Emergency repairs and unexpected costs | $400 | $4,800 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some moisturizer brands make 5x more profit than you!
We have studied the strategies of the best moisturizer brands in the world. Replicate them now!
What are the biggest expenses for a moisturizer brand?
Be mindful of these pitfalls. Here are five major costs every moisturizer brand owner needs to consider, along with some tips on how to manage them effectively.
- Raw material costsThese can take up a significant portion of your budget. You're dealing with natural ingredients, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value.
- Labor costsYour team is your backbone, but paying for their wages, benefits, and training can be expensive. This cost is always high because you need skilled employees to ensure product quality and smooth operations. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your team, as this can lead to high turnover and poor product quality.
- Packaging and shippingAttractive packaging and reliable shipping are essential but can add up quickly. To optimize these costs, negotiate favorable terms with suppliers and invest in sustainable, cost-effective packaging solutions. Overspending often happens when you choose packaging that's too elaborate or shipping options that are unnecessarily fast.
- MarketingYou need to get the word out about your moisturizer brand, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our guide. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Research and developmentThis includes everything from formulating new products to testing and compliance. These are expensive because innovation and safety are crucial for customer satisfaction and regulatory approval. Optimize by investing in targeted R&D projects and maintaining a clear focus on market needs. You can overspend by pursuing too many projects simultaneously or investing in high-tech solutions that don’t align with your brand's core values.
How to spend less with your moisturizer brand?
Here are practical tips to help you, as a moisturizer brand owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Partner with local suppliers for high-quality, organic ingredients at competitive prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient lighting and machinery in your production facility. |
| Marketing | Run social media contests for your moisturizer brand and collaborate with beauty influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers who return empty containers. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Research and Development | Allocate budget for R&D to innovate and improve product formulations. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle excess materials. |
| Technology | Invest in multi-functional production equipment and utilize management software for inventory and orders. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Quality Control | Implement strict quality control measures to ensure product consistency and customer satisfaction. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Customer Service | Invest in a robust customer service platform to handle inquiries and feedback efficiently. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Product Testing | Partner with certified labs for cost-effective and reliable product testing. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best moisturizer brands in the world!
There are moisturizer brands that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a moisturizer brand
Yes, some expenses for your moisturizer brand are just unnecessary. They don't contribute to increasing sales or enhancing customer satisfaction.
| Moisturizer Brand Expense | Reason It's Useless |
|---|---|
| Luxurious Packaging | Overly extravagant packaging doesn't necessarily attract more customers and can be a drain on the budget. |
| High-End Celebrity Endorsements | Unless you are a premium brand, most customers are satisfied with relatable influencers. |
| Excessive Product Variants | A large product range increases inventory costs and leads to more unsold stock. |
| Top-Tier Manufacturing Equipment | State-of-the-art manufacturing equipment is not always necessary and can be cost-prohibitive. |
| Traditional Print Advertising | Print ads often have a lower return on investment. Don’t include them in the marketing strategy of your moisturizer brand. |
| Multiple Packaging Designs | Having various packaging designs increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving product quality. |
| Premium Subscription Services | Expensive subscriptions for industry reports or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Office Furniture | High-end office furniture is not always appreciated by employees and can be a significant expense. |
| Custom Printed Labels | Personalized labels are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Office Renovations | Constantly updating office decor and layout can be costly and disrupt operations. |
| Expensive Office Decorations | Elaborate office decorations are often ignored by employees and add to the cost. |
| High-End Office Supplies | Luxury office supplies are prone to damage and expensive to replace, often going unnoticed by employees. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Product Designs | Frequently redesigning products is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense.Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Event Equipment | Specialized event equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your moisturizer brand!
Managing a budget for skincare when funds are tight can feel like a nightmare. It's like being in a constant state of worry where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in new product development or marketing campaigns, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your brand.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of skincare brands just like yours. Get them now!
Make your moisturizer brand more profitable
We have studied the strategies of the best moisturizer brands in the world. All their tactics are explained in our pack!
