BP Tips - How to price out ONE Lip Balm Tube

Jul 22, 2022
We received an excellent question today, and I'm answering it in this video. 


TRANSCRIPT from the video:

Hi, Caitlyn, this is Katrin with Blend Precisely, and I'm also recording this in order. Someone else needs that tip. And it was a really good question, Caitlyn; in regards to, for example, creating lip balms, we often generate lip balms in larger batch sizes because we can then fill 9, 10, 14, and 15 tubes because the batches are so tiny for lip balm tubes that we cannot really create just one.

So the question was very justified, and just for the other ones, Caitlyn asked, how do I make, or how do I get the prize if I now have just one lip balm tube to fill and not the entire batch? She mentioned she could fill nine containers that she could get out of her recipe. Nine lip balm tubes.

So I pulled up a recipe. I have created it here, and I can actually get 14 to 15 out of my batch. And obviously, I have the entire batch here, meaning 70.6 grams. Now I would like to know the costs. We have 1197 here for the entire batch of raw ingredients. Now I would like to know the cost of just one lip balm tube.

And my lip balm tubes are five grams. So five grams fits into one tube. I know I can create 14 to 15 tubes. So let's stay on the safe side because sometimes it just stays inside the pen or your Pyrex container, and not everything comes out. So we are saved with saying, okay, 14 lip balm tubes, and how you get to this one is basically take the entire batch 70.6

grams divided by the size of your containers, five grams. And that gives me, I think, 14.12 lip balm tubes. Now, if I want to know how much it is going to be, just like one five-gram lip balm tube. What you can do is save it as a cosmetic recipe. And I'm just going to go ahead and do this here. And I'm going to rename it at the same time.

Vanilla lip balm is five grams per container. So it's a single unit. That means the entire recipe right now is going to be converted. And then I'm going to go over here and scale it down to five grams, and all my costs will change and go down to 5 grams instead of 70.6 grams.

And as you can see here it is now 85 cents for one lip balm tube and 36 cents for the packaging. Then you can add the sales tax. You can also add the production time costs. Let's say it was two minutes. And then you have your entire costs here. 

So it's formulation costs and packaging, plus my production costs. And I'm going to sell it at a retail price for $4 36. Now obviously, for lip balms, you can go up a little bit higher in your profit margin, and you probably want to do this and go up to five or maybe even eight as a profit factor.

Depending on your circumstances, you could sell your lip balm tube for $9.61. Next, save that recipe as such. So this is how I would go about finding out my single unit costs when I created a large batch. Feel free to play around with it and let me know what you think.

And I hope that was helpful. I will talk to you soon and have a lovely weekend.


xx Katrin



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