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Working out what to charge

Updated

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Do it once, properly, before the range is priced.

Cost per bottle

Components: bottle, trigger or closure, induction liner, label, carton share.

Formula: raw material cost per kilogram times the fill weight.

Labor: your rate divided by finished bottles per hour, filled, capped, sealed, labeled and boxed.

Freight, which for a liquid belongs in the unit cost rather than as an afterthought.

Worked example

A 750 ml trigger spray. Bottle 0.30, trigger 0.55, label 0.08, carton share 0.10: components 1.03.

Formula at, say, 0.40 per kilogram of finished product: 0.30.

Finishing 80 bottles an hour at 25 an hour: 0.31.

Unit cost about 1.64, plus overhead and a scrap allowance, call it 1.85.

Note the shape: the trigger alone is a third of it and the chemistry is a sixth. Sourcing a cheaper surfactant is a rounding error; moving to a concentrate or a simpler closure is not.

From cost to price

Set wholesale first, with a real margin over cost, then double it for retail, then check the retail number against the shelf.

If it is above the band, the components have to change. A small maker cannot win a price fight in this category and should not try.

And if freight is large relative to the unit, the answer is a concentrate rather than a bigger margin.

The sanity check

A real week: hours worked, bottles finished, gross margin per bottle. Multiply.

If the week's margin is not a week's pay, the levers are the components, the freight and the channel, in that order. Working faster is not one of them.

References

No published source. This page is written from practice rather than from published guidance. No extension service or agency publishes on this question for cleaning, so nothing here is cited, and it should be weighed as experience and not as a standard.
Written from the federal regulation and agency guidance named on each page, not from a laboratory or a legal practice. Whether a particular product and a particular label make a cleaner or a pesticide is a determination about your product, and this is not that determination.