Trust me, the most popular type of soap in Nigeria now is the liquid soap, and making 250% pure profits in this liquid soap business is not surprising to me because I am aware of the huge profits in the production business, but I am sure there are lots of people who aren’t aware of this fact; which is why I am bringing this to you today.
Last week I went to visit a friend in his studio, and I needed to get some tools to use for my video shoot. Unfortunately, he needed to buy a bottle of liquid soap for his studio to watch plats and all that. So, he requested I help him buy it when coming back to the studio; after getting all that I needed, I went to a chemist shop to buy a liquid soap. Read carefully here… As I got into the chemise’s shop; I specifically requested I do not want MAMA Lemon or any brand – I want locally made liquid soap.
So, he brought this and gave me his price… I was like… what? N300!!! He said yes! I left hoping he will call me back, but he never did. Later I went back to buy the soap, because I knew my friend needed it.
That is not even the point; the good side of this is that the guy told me he already sold 3 pieces of that liquid soap at around 9am that morning. Then, I quickly did my Maths; since I am the grand-master of household production.
Here is the Mathematical Calculation
- Liquid Soap Chemical for 30Liters (N2,500)
- 30 Liters of liquid soap will produce 60 pieces of this plastic size.
- Plastic – N30 with cover (N1,800 for 60 pieces)
- Sticker – N20 per one (N1,200 for 60 pieces)
Total Cost of Production = N5,500
Cost of production per plastic = N91 i.e N5,500/60
250% Pure Profit Calculation
Selling Price = N300 per one
Total Selling Price = N300 x 60 pieces = N18,000
Profit Margin = N18,000 – N5,500 = N12,500
I know some of you reading this post won’t still believe this, but I do not care. However, for those who really want to start this business and make money. I will love to give my sincere observation about that soap.
My Sincere Observation About This Soap
I am going to talk about the bad things first; so, we can all learn and implement them in our production. Then, I will discuss only one good thing about this liquid soap.
- The soap had a bad smell: This could have been as a result of a poor production process or bad perfumes combination. Another thing that could cause this is the amount of formalin added.
- Poor Liquid Soap Quality: Truth be told, that soap was of poor quality, maybe the producer was trying to maximize profit or he does not know how to produce quality soap. That is why I encourage you to get trained; even if you don’t intend to sell your liquid soap. Just make sure you produce a liquid soap you can be proud off.
- The Liquid Soap Was well branded, at least for that price: See, if you must sell at a higher price; then, you must create a higher perceived value – period. If you are selling your liquid soap in Eva bottle container; how do you intend to make more profit. Remember, people buy the packaging before using the product. That is why you must brand and package your product very well. More so, branding and packaging will sell your product, but the quality will retain your customers.
You can read more about soap here on wikipedia