![How to plan and track the budget of your soap shop [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-5_32912f6c-4e05-45fc-8cb7-45e9663ea7d5.png?v=1715856375&width=1100)
If you don’t plan and track your soap shop budget properly, you're setting yourself up for failure.
When we developed our strategy pack for soap shop owners, we saw a lot of soap shop owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial sales.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your soap shop's finances around and set you on the path to success!
Get the budget tracker tailored for soap shops
Most soap shop owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for soap shops
Here is an example of a (very) detailed budget for a soap shop, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for retail space | $2,500 | $30,000 |
| Electricity | Power consumption for lighting and equipment | $300 | $3,600 |
| Water | Water usage for production and cleaning | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $50 | $600 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $200 | $2,400 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Store Manager | 1 | $3,000 | $3,000 | $36,000 |
| Sales Associates | 2 | $2,000 | $4,000 | $48,000 |
| Soap Makers | 2 | $2,500 | $5,000 | $60,000 |
| Marketing Specialist | 1 | $2,500 | $2,500 | $30,000 |
3. Raw Materials & Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Soap Base | Raw materials for soap making | $2,000 | $24,000 |
| Essential Oils | Fragrances and essential oils | $1,000 | $12,000 |
| Colorants | Natural and synthetic colorants | $500 | $6,000 |
| Packaging | Boxes, labels, and wrapping materials | $800 | $9,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $100 | $1,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of soap making equipment | $200 | $2,400 |
| Uniforms | Staff uniforms and aprons | $100 | $1,200 |
| Licenses & Permits | Business licenses and permits | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some soap shops make 5x more profit than you!
We have studied the strategies of the best soap shops in the world. Replicate them now!
What are the biggest expenses for a soap shop?
Be mindful of these budget busters. Here are five major costs every soap shop 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 ingredients like essential oils, lye, and natural additives, 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.
- Staffing your soap shopYour staff is your backbone, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a certain number of employees to provide excellent customer service and keep operations running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your shopPrime locations come with high rent, but they can attract more customers. Utilities like electricity, water, and heating are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to get the word out about your soap shop, but advertising can be expensive, 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 pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from soap-making equipment to store fixtures. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your soap shop?
Here are practical tips to help you, as a soap shop owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Raw Materials | Source ingredients in bulk from local suppliers to reduce costs and ensure freshness. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient equipment in your production area. |
| Marketing | Run social media contests for your soap shop and collaborate with local influencers for free exposure. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own 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. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| 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 inventory management software. |
| 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. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| 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 soap shops in the world!
There are soap shops that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a soap shop
Yes, some expenses for your soap shop are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Soap Shop Expense | Reason It's Useless |
|---|---|
| Luxurious Store Decor | Overly lavish decorations don't necessarily attract more customers and can be a drain on the budget. |
| Premium Packaging | Unless you are targeting a high-end market, most customers are satisfied with simple, eco-friendly packaging. |
| Excessive Product Varieties | A large variety of products increases inventory costs and can overwhelm customers. |
| High-End Display Fixtures | Top-of-the-line display fixtures are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your soap shop. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized bags 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 Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Store Displays | Elaborate displays are often ignored by customers and add to the cost. |
| High-End Product Containers | Luxury containers are prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Label Designs | Frequently redesigning labels 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 Manufacturing Equipment | Specialized manufacturing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your soap shop!
Managing a budget for a soap shop when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching 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 resources to invest back into your business.
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 soap shops just like yours. Get them now!
Make your soap shop more profitable
We have studied the strategies of the best soap shops in the world. All their tactics are explained in our pack!
