Soap Business

How Profitable Is A Soap Business? (Updated for 2024)

Pat Walls

•

Updated: July 23rd, 2024

How Profitable Is A Soap Business? (Updated for 2024)

So you want to start a soap business?

And the first question that came to your mind was, “well, are soap businesses actually profitable?”

With a market size of $82.3B - there’s plenty of business to go around.

Especially considering:

You could start a soap business with as low as $200
Based on our data, soap businesses generate an average of $1.09M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a soap business.

Let’s dive in!

Is a soap business profitable?

Yes, a soap business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.09M per year with an estimated gross margin of 40%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your soap business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your soap business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a soap business worth it?

If you’re wondering if a soap business is worth it, the answer is a big YES. With soap businesses, you have the potential to earn $1.09M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $82.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a soap business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful soap businesses case studies.

Examples Of Profitable Soap Businesses

Here are a few examples of profitable soap businesses, and a few more details about them:

1. Outlaw ($4.56M/year)

Danielle, the founder of Outlaw Soaps, started the business out of a desire for adventure and escape from the corporate world. On her honeymoon, she discovered a bar of soap that reminded her of the joy and excitement of her adventures. Realizing she could make her own soap with unique scents, she and her husband Russ launched Outlaw Soaps in 2013 with just $13.72 worth of supplies. Since then, they have built a loyal customer base and expanded their product line to include body wash, cologne, lotion, and more. With an average monthly revenue of $23,000 and a strong emphasis on customer service, Outlaw Soaps has found success by tapping into their customers' love for adventure and their desire to break free from the mundane.

Is it profitable? Yes
How much money it makes: $4.56M/year
How much did it cost to start: $200

Leaving The Cubicle To Start A $23K/Month Soap Company

Outlaw Soaps, a soap company that started with just $13.72 of supplies, now makes an average of $23,000/month, with 46% of website orders from repeat customers who are loyal to the company's unique products and top-notch customer service.

Read this case study

Read by 24,350 founders

2. Mirai Clinical ($1.2M/year)

Koko, a Japanese female serial entrepreneur, came up with the idea for her eCommerce business of deodorizing body, hair, and home care products after realizing the lack of solutions for body odor associated with aging. Inspired by her grandmother's experience, she introduced Japanese Persimmon soap to the US market. Now, her business generates $100,000 in monthly sales, primarily through Shopify and Amazon, and focuses on providing senior-friendly products and exceptional customer service.

Is it profitable? Yes
How much money it makes: $1.2M/year
How much did it cost to start: $15K

How I Created A $100K/Month Soap Bar To Treat Body Odor

This case study features a Japanese female entrepreneur who started an eCommerce business offering deodorizing body, hair, and home care products, with monthly sales of $100,000 mostly from Shopify eCommerce and Amazon, targeting baby boomers and offering solutions for body odor associated with aging in the USA.

Read this case study

Read by 10,760 founders

Learn more about starting a soap business:

Where to start?

-> Soap business plan
-> How to finance a soap business?
-> How much does it cost to start a soap business?
-> Pros and cons of a soap business

Need inspiration?

-> Other soap business success stories
-> Marketing ideas for a soap business
-> Soap business slogans
-> Soap business names
-> Soap business Instagram bios

Other resources

-> Soap business tips
-> Blog post ideas for a soap business

How much can you make with a soap business?

With a soap business, you can make an average of $1.09M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $200. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a soap business make a week?

Based on our data, average weekly revenue for a soap business ranges around $22.7K. As such, you could see monthly revenues of $90.7K.

To know if your soap business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your soap business.

How much do soap businesses owners make?

The income of a soap business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established soap business is about $22.7K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a soap business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Soap Business Profit Margins

Generally speaking, a soap business can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a soap business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, soap business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, soap business owners can ensure long-term sustainability and profitability for their business.

Soap business owner salary

The salary of a soap business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established soap business, in a prime position, might see an average weekly salary around the ballpark of $9.07K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, a soap business is quite promising if you plan on starting such. With a market size of $82.3B, you can enjoy a potential revenue of around $1.09M per year with a gross margin of 40%.

Considering this information, you can enjoy a return of investment within 7 months, especially if you have a monthly profit of $36.3K. Overall, the success of your soap business also depends on your effort and knowledge about it. If you persevere with these things, you can ensure that this soap business is profitable.

Make sure you have a proper soap business plan and know how to get clients for your soap business.

Part of

Starting A Soap Business: Everything You Need To Know

‹

›