Herbal Soap Making Business

Herbal Soap Making Business. Herbal soap contains natural ingredients, juice or extract, and vitamins from medicinal plants and fruits like papaya, lemon and calamansi.

How to start a business in herbal soap making. The following guide is very helpful for anyone interested in making their own herbal soap.

I. Estimated Investment Requirements

A. Tools/ Equipments*
Glass or cup – P269
Plastic Pail (16L capacity) – 220
Cheese cloth or strainer – 30
Wooden ladle or bamboo stick – 25
Knife – 140
Chopping board – 190
Plastic molders – 875

B. Materials/ Ingredients*
1 glass or 250 ml caustic soda (NaOH) – P11
3 glasses water
5 glasses cooking oil – 92
1/2 glass juice/ extract – 10

* Based on march 2009 market prices

II. Procedures

1. Prepare the materials and the utensils needed
2. Measure 1 glass of caustic soda and 3 glasses of water and pour into a plastic pail.
3. Mix well by stirring continuously using a wooden ladle or bamboo stick. Use only one direction when stirring.
4. Stir until the caustic soda is dissolved.
5. Pour 5 glasses cooking oil into the mixture.
6. Continue stirring until a consistency similar to a condensed milk is achieved then add 1/2 glass of juice or extract.
7. Pour the soap mixture into desired plastic molders. Set aside and and let it cool to harden.
8. After 4-5 hours, remove the soap from the molder.
9. Allow 30 days of ageing before packing.
10. Label the soaps.

Indications:

Kamias – fruit extract or juice (bleaching soap)
Calamansi – fruit extract or juice (bleaching soap)
Cucumber – fruit extract or juice (moisturizer)
Papaya – extract from fresh leaves (bleaching/ moisturizer)
Radish – extract from the stem (moisturizer)

III. Estimated Costing and Pricing

A. Product costing

Direct cost
Raw materials- P113
Labor cost/5 times/formulation/day – 76.40
(382/day min. wage)
Water and electricity – 50
TOTAL Direct cost- P239.40

Indirect cost
Transportation cost* – P100

*may vary depending on distance between area of business operation and source of raw materials and/or market area.

Production cost
Total Direct cost – 239.40
Add: Indirect cost – 100
Estimated Production cost – P339.40

*Finished product will result in 15 bars of soap (130 grams/ bar)

B. Product Pricing

Production cost per 130 grams soap – P23.00
Add: 20% mark-up of the production cost – 4.60
Estimated selling price/ 130 grams soap – 27.60
Market Price per piece – P30.00

* If price per 130 grams of soap is lower compared with the existing market price, increase the mark-up to 30% or more. The higher the mark-up, the higher the profit margin.

IV. Register and Get your Permits/ licenses here.

V. Business Funding Sources here.

Source: dost.gov.ph, trc

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