You think all the hard work is over once you price your product, then you realize you have to pay for the boxes and the  padding that you ship all your fabulous product in.

How do you allow for that in your pricing?

There are a few ways you can do the figuring and any of them are perfectly acceptable.

BOX SIZES:
First of all, how are you shipping? Carrying multiple sizes of boxes can be tedious and space hogging. My recommendation would be to take a look at your product minimum, the average items and quantities ordered.

For example: An average order may be 36 bottles (lotions/washes), 24 body butters, 12 body polishes, 12 Travel Packs and 4 Testers.

Get these items together and start mocking up your packing and measuring different scenarios.

You have to think about weight of the box for easy handling, which items pack best together and what size boxes will work best in almost every instance ( due to order/product variance).

You’ll have the odd packed box every now and then, but for the most part, you want to have 2 inches of space around the edge of the box and from the top. You also want to have the least amount of padding/peanuts, etc. that is acceptable in order for the items to fit and ship snugly and safely.

If you have an odd size item that is 9 inches tall when all your other items are 6 inches tall, you don’t want to have to order all 11 inch tall boxes for that one item. That’s a lot of peanuts on top of the shorter items. Also, every retailer may not order the tall item. So the best thing is to allow for a box that will be best suited for tall item by itself. This would also apply to more fragile items that would be best shipped by themselves.

Once you have mocked up your shipment you can start fooling around with inner and outer box sizes.

You’ll need the outer boxes to be 1 inch taller and wider than the total measurement of the inner boxes in order for them to fit inside each other. Your outer box may have to be a bit larger than this- but not smaller.

This exercise takes a bit of time and patience. I would recommend getting a catalog from one of the shipping suppliers. I use Uline. You can then have all the dimensions of the available boxes in front of you while you are working all this out.

Sometimes you’ll be tempted to get a certain size box because it’s cheap and you could make it fit if you added a lot of padding. Well, padding, like peanuts, cost money too, so I usually opt for the box that will seem like it’s been as custom fit as possible for my products.

At this point, I use 1 size inner, 1 size outer and 2 specialty boxes. The outer boxes and the specialty boxes are similar in dimension, so it makes packing out and stacking easy.

I also have 2 smaller sizes for online orders.

Now, how to charge for these boxes.

PER PRODUCT:
The first thought you  have is probably to add a charge to be included in the wholesale cost per product. But that’s kind of hard because your products are all shapes and sizes. Here are 2 ways to look at that cost.

Pre-Packs:
Do you have pre-packed boxes for each of your products?
For instance, your minimums on lotions are 12 bottles and you have a box that holds 12 bottles. The cost of the box is $1.00 plus about 3 cents for the shipping you paid to get it. So,  $1.03 /12 = 8¢ per bottle.

Do you use inner and outer boxes? If you pack 2 or 4 inner boxes to an outer box, then you also have to figure in the outer box.

Let’s say 2 inner boxes to 1 outer box. The outer box is $1.58 / 2 (inner boxes) = 79¢ cents.
79¢ / 12 = 6 ¢.

So now you have 6 more cents to add to each product. That’s 15¢ a bottle.

Loose Pack:
This makes things more difficult because you never really know what or how many will go into each box. After shipping and packing for a awhile, you have a pretty good idea of what and where items will fit.

Your box will fit 12 bottles , 6 soaps and 24 lip balms. That is 42 items. Box is $1.23. That is 3 cents added to each item. Do the math again if you do inner and outer boxes.

The 3 cents may sound cheaper per item, but remember, depending on your order size and items ordered, you are never really sure how many boxes each order will take. You may have 12 more bottles that you need to pack and only have the  one box size, so the price per item for that box it 10¢.

This will get very confusing and erratic in figuring out the charges.

*You may decide to have just single boxes- no inner and outer boxes. This usually adds up to more individual boxes which cost more to ship. I’ve ship more confidently and efficiently with inner and outer boxes. I can ensure they have adequate padding and taping to get to their destination safely.

AVERAGE ORDER SIZE:
Your average order is $500.00. It takes about 8 inner boxes at 89¢ per box and 4 outer boxes at $1.21.

Again- the average order may be 36 bottles (lotions/washes), 24 body butters, 12 body polishes, 12 Travel Packs and 4 Testers.

That’s about $12.00 in boxes. $12. / 88 = .13 per product.

ACTUAL BOX COST:
This is easy and seemingly the most straight forward.
The order is $660.,
13 boxes for a total of 13.25 on boxes
$48, Actual Shipping

Invoice says:
$660 for product
$61.25 Shipping ( maybe have it read “Shipping & Handling”)

Now, with this said, sometimes you get a retailer that directs you to use their UPS or Fed-Ex account number. In that case, they’ll be charged the actual shipping charges. You can still add “Handling” charges or elect not to worry about it, as it doesn’t really happen that often.

FLAT FEE:
You may also decide to have a flat fee you charge for each order to help with the shipping charges.
Let’s say $5.00 – $10.00 per order.

The object is not to have this be a profit center, although many companies do try and make a profit here. I don’t think that’s a good idea.

I’m willing to write some of shipping costs off in my profit margin, but not all of it.
Being a small Biz makes it difficult to allow for per product shipping charges due to variance in product and order size and recover the % of cost you want.

Whatever you decide, I hope this information helps you  out a bit.

Do you have a different thought? Let me know. I’d love to hear it!

Why does the mere mention of 3 little letters strike terror in our little B&B hearts and simultaneously cause eye-rolling?

I think it’s fear of the unknown or watching to much Oz on HBO.

Playing against the hype, I’ve actually found that the FDA tries to be as user friendly and consumer oriented  as possible.

If you’re serious about being in the Bath & Body biz, then you’ve probably already visited the Cosmetic section of the FDA site on more than one occasion. If you haven’t been there, I highly recommend the trip.

I’m not going to get up on any “soap box” about cosmetic issues. I just thought I’d point out that there is a a lot of useful information on the  site and it warrants a few minutes surfing. You may be surprised at how much information is there and it’s even in a readable, understandable format.

Will you still have tons of questions, be mildly confused and exasperated? Um, probably. However, it’ll give you a good starting point for questions and a base for doing more research.

I have links to the Cosmetic section of the FDA site throughout this site, but, let me list a few of the helpful pages to get you started.

Is It a Cosmetic, a Drug, or Both?: Or Is It Soap?

Need to know more about labeling?: Cosmetic Labeling Guide

Want to know more about how the FDA is involved with Import & Exports?: Cosmetics: Import & Export

Do I need to print expiration dates on my cosmetic products?: Shelf Life/Expiration Date

What’s a “Cosmeceutical?”

Is there any danger to Temporary Tattoos or Henna /Mehndi?

What is VCRP- Voluntary Cosmetic Registration Program?

Since the FDA is a government agency, it’s important to use this as a starting point when researching and analyzing information. I’m not advocating or criticizing it’s power, I’m simply pointing out that it is the US regulatory agency.

There are other organizations that may mean well for the agenda that they’re representing.  “Their” agenda may or may not be for the public good – I’m not here to judge (well not right now anyway.) The point is, the FDA is responsible for regulating and supervising the safety  of  product that we produce – Bath and Body products otherwise known as “cosmetics.” You should know where they stand.

Check it out.

I’ll openly admit that I had no idea who IFRA was until recently.

I purchase perfume, scented soaps and shampoos on a regular basis. And, like all of you, I also buy fragrance in forms the general public does not; Fragrance and essentials oils and others variants.

I never gave a thought to any type of “governing” body regulating fragrances. I just figured if it was being sold on the open market, that it’s legal.

I’m also under the opinion, that certain things may effect my skin adversely; I may be allergic or have reactions to certain ingredients. I then would stop using those ingredients.

Apparently, there is more to it than this. That is where IFRA, International Fragrance Association, comes into the picture.

IFRA: We promote the safe enjoyment of fragrances.

IFRA, the International Fragrance Association, is the official representative body of the fragrance industry worldwide. Its main purpose is to ensure the safety of fragrance materials through a dedicated science program. This focus on fragrance safety helps both the consumer and the environment.

IFRA does don’t make the law. They are a voluntary compliance organization made of up of 90% of the perfume and fragrance manufacturers. You do not have to belong, but if you do, it’s mandatory that you adhere to their standards and practices.

IFRA represents the fragrance industry regional and national associations worldwide. IFRA is the reflection of the industry’s choice to regulate itself and and its activities result in a Code of Practice and safety Standards, which members must adhere to, in order to achieve the objective of protecting consumers’ health and our environment.

Sounds innocent and well intended enough. Bu it seems IFRA  is even more aggressive in issuing safety standards than even the European Union.

“There seems to be a steady build-up of regulatory rules,” said Luca Turin, a scientist and perfume expert at the Massachusetts Institute of Technology.

A mild allergic reaction should not prevent great scents from being preserved, Turin said. After all, “to my knowledge perfume has never killed anyone,” Turin said.

The IFRA says consumer safety is the overwhelming priority.

“It’s not necessary for someone to die before we establish a safety standard,” said Matthias Vey, IFRA’s scientific director. “Skin contact is our biggest concern, and if you are sensitized you can develop a rash, skin redness, itching and swelling.”

I was made aware of IFRA recently in regards to some new regulatory % allowances on usage for different cosmetics and perfumes. This didn’t cause great concern until I read an article today  Allergen Rules May Alter Scents of Great Perfumes.

The article is mainly about how the iconic perfume, Chanel No. 5 may be in jeopardy. The use of natural jasmine will, for the first time, be restricted in all perfumes to 0.7 per cent of the finished product, to ensure that wearers have no allergic reaction to the flower.

This lead to a Google search where I stepped into an intriguing world of perfumer blogs. IFRA has been a hot topic for almost a year now, and there are not too many supporters of IFRA in sight.

This year, some perfume enthusiasts, including the Paris-based fragrance historian Octavian Sever Coifan, had, feared that new regulations from the International Fragrance Association (IFRA), which come into effect next January, would spell the end of Chanel No. 5.

But Jean-Pierre Houri, head of the IFRA, was categorical in his denial.

“Chanel No. 5 will be unaffected by the IFRA restrictions.” And a spokesperson for Chanel said that “Evidently when the new standards were issued we immediately checked the percentages in our finished products and in none of our fragrances is the recommended level exceeded.”

Ocatavian’s response, and I paraphrase:

… any journalist who wants to carry a deep investigation can analyze several samples in an independent lab. The amount of jasmine absolute (if it is 100% or combined with other jasmine absolutes) can be revealed.

And by the way, what other fragrances have today more jasmine absolute than No5 and Joy? If this expensive ingredient is used less than in No5 (that would not be affected), than why did they restrict its use?

I believe that several brands should reflect with a lot of care about their transparency because this mascarade (sic) might have bad effects in the near future if somebody will publish side by side analysis of several perfumes. Remember that formulas are not protected by any law and so “revealing” them to the public by a third part is not a crime.

The point being that, Chanel and other large perfumers have too much at stake. They will never admit to changing their product to comply with new safety standards and IFRA will protect them too. They need the high profile clients to give their organization creedence. So, they both say that the existing recipes and %’s are just fine and meet all standards.

Why doesn’t Chanel, Guerlain and other large companies fight back? From what  I could find, they are afraid of the backlash and possible lawsuits, like the tobacco industry has had to endure.

Suggestions of warning labels have been made, but I can’t seem to find any clear declaration of viewpoint on that issue. I guess IFRA has been open to that in the past, but it doesn’t seem as though they are open to it for perfumes.

Wow, who knew this was all going on. I found this all very fascinating and, I must say, I feel kind of special being involved and aware of the situation and process. The great perfumers of Paris are having the same issues effect them and their fields of jasmine as I do when I order ingredients for my special concoction of Almond Biscotti fragrance oil.

If you would like to read more, below are links to some great articles and blogs on perfume.

The Independent: The Sweet Smell Of Success

1000 Fragrances: Octavian Sever Coifan: Chanel No. 5 New or Not New, Endangered Fragrances

Legerdenez : The Chanel No. 5 Controversy, Are You Tired Of Hearing About IFRA Yet?