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Thumbs down - Catie's Bubbles new price point

I believe our flatline national economy makes conducting business very hard for small businesses. Every aspect of an artisan soap maker's expenses keeps rising. Just as we consider the price point of their product, they too, have a price point in mind. If they cannot meet theirs, then we will loose the artisan's contribution to our hobby. I try to look at the product as "what value is this to me-----do I like it,, do I want it, is there something similar I can replace it with, etc. My decision to purchase is based in my value of this product to me. Not what does it cost, I admit there is a breaking point for me as well, but remember the producer is a small business needing profit to survive.
 
Interesting comments in this thread. Czech & Speake Oxford refill-$34.00 for 90 grams.
I'm good with that. Never gonna buy any,that's for certain. But the free market system and capitalism are American precepts which are (and should remain) unshakeable. I have no problem with Catie's, Mike's, CRSW, Soap Commander, or anyone charging whatever they like. I'll decide if it's worth the asking price or not. It's that simple. It's that fair. It's that American.
 
I'd rather have 4 oz for $14 than 8 oz for $20 myself. It takes forever to get through an 8 oz jar of soap, then when you add multiple scents, that's a hell of a lot of soap. This isn't Costco you know.

I'd rather not pay $20 for one scent when I could pay a little more and get two different ones instead.

Would it be nicer if it were $12 for 4 oz, sure it would, but it's not far off per oz from the price other vendors are charging.

+1[emoji106]
 
It's not just CB. PAA did the same thing when they moved away from their larger tins. It's a developing trend across all products. Anyone else notice a couple of years ago when the large dog food bags went from 40 lbs to 34 lbs. Price didn't change, but the volume did.

I've found a few really good soaps that do fit well into my price range, and offer excellent performance, so they'll continue to get my business.

This is called hidden inflation and it's not new, it's been going on since I can remember and even before I was born. As for the new CB, I don't see the addition of a bit of shea butter being worth so much more and I certainly don't see a real boost in quality of the product for the extra price.
 
I don't think this criticism is fair. The new price point is much more in line with the price point offered by other Artisans, and by all accounts, the new Luxury cream formula is a marked improvement over the previous (already good) formula. Assuming the new formula requires different ingredients (it does), it only makes sense for it to be sold at a different price point. If it weren't for the fact that the old formula CB soap was such a value price point per ounce, nobody would have remarked at the price of the new soap.

The original CB was one of my favourites and my account is that it isn't a huge improvement, if any, so IMO/IME this isn't a marked improvement.

BTW I noticed you are also from Ottawa and if you are interested in some good stores PM me, I might have a few you haven't found yet that are worth checking out.:thumbup1:
 
Some soap artisans blogged about their experiences. I watched a few Tiki Bar Soap videos and the artisan said that she was actually a teacher or a chemist, but she started moving more towards making soap full time as her business took off. I think Dr. Jon also has a blog post saying that he was moving towards running the soap business full time, which means that he was still sticking to his regular job for a while.

Given that shaving soap lasts such a long time and that it is such a niche market, it's hard to imagine that any of them are making a ton of profit. I don't mind paying a luxury tax for these amazing soaps as long as I can afford them, because I love doing highly personalized business with these small vendors. I fear the day when there is some corporate takeover of this tiny market and they start pulling some marketing tricks in order to get users comfortable with paying an unreasonable amount for soap. Hopefully that never happens. For now, I'm okay with the prices and I'm very happy to support vendors. I don't want to see nice people and seasoned soap makers like Mama Bear close up shop. It will take all the fun out of wet shaving for me.

The owner of Tiki Bar (who apparently acquired Steambath Works) is a PhD in chemistry. I really like her products that I have tried so far.
 
From an economics point of view, the price change makes completely perfect sense in all manner of ways.

Firstly, obligatory demand and supply curves and whatnot. People like the soap, it's popular, and are willing to pay what they are willing to pay.

Secondly, "accessibility" of the product is a big deal here. Think about it in terms of somebody wanting to try the soap - spend $20 on something you might like from a performance standpoint. Even if you do like the performance, what if the scent isn't your thing? CB doesn't offer samples directly, so for the consumer who doesn't already have "their product" dialed in, this is an improvement. Not many folks are willing to spend $20 on something they don't know well. Something about <$15 is much easier psychologically.

Thirdly, price per oz with shaving soaps is one of the most useless metrics without more information. Yes, it now costs more per oz. Assuming you're talking about the "soap", rather than the "luxury cream soap" (that one is special since it undergoes a rot process similar to a cream), it is also a much harder and thirstier soap now. Cost per shave should be pretty significantly less compared to the original French style. Have you done the math? The French style took a ton of product per shave, the new one barely takes a dent even after weeks of use. Again, price per oz isn't helpful at all when determining even something like thrift and value.

Fourthly, economies of scale is a very real thing. There are fixed costs in things, which is why buying in bulk creates lower prices. For example, the container CB is using is a "fixed cost." It's an expense that doesn't change, no matter how much soap is in it. Labels are another one. Labor costs of applying labels, filling the containers and shipping are all also fixed costs. Packing materials are a fixed cost. Let's use some algebra to figure out how this might work!

20 (cost of old French formula) = f (our fixed cost of unknown value f) + 8s (8 oz of soap at unknown value s)

14 (cost of new formula) = f (our fixed cost of unknown value f) + 4s (4 oz of soap at unknown value s)

So subtracting the two equations from one another and plugging away we find that s = 1.5. Use that new value on the original formula and holy smokes we come to a fixed cost (f) of $8. So basically, between all of the fixed costs of stuff outside of the soap itself, such as labor (so like, Chris not working for free[what a jerk]), labels, containers, shipping supplies, printing and such, $8 of each tub of CB soap is not actually paying for the soap itself. After that fixed cost, you get $1.50 per oz of whatever is getting filled into the tub. And even then as I mentioned it is a much more efficient soap than the old French formula, so I'm not sure the value there.

Summary - Gah, this price per oz thing really bugs me, it's such a useless number since it's not apples to apples. If Chris changes the price of the same formula, with the same amount of actual soap, you have something. As is... not as much.

Your points are well made, and I agree with you.

I would go even further and say that even if the product had not been changed to a harder and longer-lasting one, the price increase would still be justifiable. I'll never raise my eyebrows at an artisan for trying to turn more of a profit within reason.

I will raise my eyebrows at an artisan for claiming that his large 8 oz. tin is part of the "science" (or whatever it was at the time) behind loading and using his soap, only to discontinue the large tin and increase the price per ounce in small tins.
 
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From an economics point of view, the price change makes completely perfect sense in all manner of ways.

Firstly, obligatory demand and supply curves and whatnot. People like the soap, it's popular, and are willing to pay what they are willing to pay.

Secondly, "accessibility" of the product is a big deal here. Think about it in terms of somebody wanting to try the soap - spend $20 on something you might like from a performance standpoint. Even if you do like the performance, what if the scent isn't your thing? CB doesn't offer samples directly, so for the consumer who doesn't already have "their product" dialed in, this is an improvement. Not many folks are willing to spend $20 on something they don't know well. Something about <$15 is much easier psychologically.

Thirdly, price per oz with shaving soaps is one of the most useless metrics without more information. Yes, it now costs more per oz. Assuming you're talking about the "soap", rather than the "luxury cream soap" (that one is special since it undergoes a rot process similar to a cream), it is also a much harder and thirstier soap now. Cost per shave should be pretty significantly less compared to the original French style. Have you done the math? The French style took a ton of product per shave, the new one barely takes a dent even after weeks of use. Again, price per oz isn't helpful at all when determining even something like thrift and value.

Fourthly, economies of scale is a very real thing. There are fixed costs in things, which is why buying in bulk creates lower prices. For example, the container CB is using is a "fixed cost." It's an expense that doesn't change, no matter how much soap is in it. Labels are another one. Labor costs of applying labels, filling the containers and shipping are all also fixed costs. Packing materials are a fixed cost. Let's use some algebra to figure out how this might work!

20 (cost of old French formula) = f (our fixed cost of unknown value f) + 8s (8 oz of soap at unknown value s)

14 (cost of new formula) = f (our fixed cost of unknown value f) + 4s (4 oz of soap at unknown value s)

So subtracting the two equations from one another and plugging away we find that s = 1.5. Use that new value on the original formula and holy smokes we come to a fixed cost (f) of $8. So basically, between all of the fixed costs of stuff outside of the soap itself, such as labor (so like, Chris not working for free[what a jerk]), labels, containers, shipping supplies, printing and such, $8 of each tub of CB soap is not actually paying for the soap itself. After that fixed cost, you get $1.50 per oz of whatever is getting filled into the tub. And even then as I mentioned it is a much more efficient soap than the old French formula, so I'm not sure the value there.

Summary - Gah, this price per oz thing really bugs me, it's such a useless number since it's not apples to apples. If Chris changes the price of the same formula, with the same amount of actual soap, you have something. As is... not as much.

My brain hurts a little bit after reading this.
I like it! :thumbup1:
 
Wait until Ver 1.245798756126789846241 comes out in an LE scent and a glass jar. :001_rolle

It's out now. It was released at midnight on Monday. I stayed up all night and managed to get the last puck. I tried it this morning for the first time and its my favorite soap ever. Its my holy grail. I'll never use another soap again as long as I live. Oh wait...I just saw on facepage its been discontinued. :blink:
 
Screw the chemistry and formulas....let's just say they wanted more profit.

Nothing wrong with that.

Probably more the case, I know the Shea butter is a premium priced ingredient but I don't think it adds that much. The market will decide if Chris has made the right move.
 
It's out now. It was released at midnight on Monday. I stayed up all night and managed to get the last puck. I tried it this morning for the first time and its my favorite soap ever. Its my holy grail. I'll never use another soap again as long as I live. Oh wait...I just saw on facepage its been discontinued. :blink:

So Haslinger? :lol:
 
Probably more the case, I know the Shea butter is a premium priced ingredient but I don't think it adds that much. The market will decide if Chris has made the right move.

It's like the cheap parking lot I used to park at when I drive to work.

It was a short walk from work, but only $8 a day, always packed, had to fight for a spot. I noticed the past few weeks there were always empty spots as I cycled by. I took the car yesterday, pulled in, found my spot and went to pay....$12. The price had increased 50%, the spaces are the same width, there is no added security, still not covered and the place was 1/2 empty. I drove out and found alternate parking, closer to my building, better facility for similar price.


Now I know why I kept seeing all the empty spots.
 
[MENTION=69297]explodyii[/MENTION] has some great notes. I see other important points while reading through this thread about formula improvements, usage per shave on all of that, just enjoying the niche product. For disclosure, I haven't used CB so I can't comment on those changes. All of those changes also factor when determining whether or not to purchase a product. However, I'm left with a nagging memory of my last trip to the supermarket. Take any product and compare the 4 oz tub to the 8 oz tub. Rarely is the 8 oz version exactly twice the 4 oz version. As explodyii explained, it takes money to buy tubs, ship product, manufacture, etc. The 4 oz tub is simply going to cost more, for any product. I am no economist but I can obviously see the effect when shopping for whatever said product. Smaller packaging costs more per product amount.
 
From an economics point of view, the price change makes completely perfect sense in all manner of ways.

Firstly, obligatory demand and supply curves and whatnot. People like the soap, it's popular, and are willing to pay what they are willing to pay.

Secondly, "accessibility" of the product is a big deal here. Think about it in terms of somebody wanting to try the soap - spend $20 on something you might like from a performance standpoint. Even if you do like the performance, what if the scent isn't your thing? CB doesn't offer samples directly, so for the consumer who doesn't already have "their product" dialed in, this is an improvement. Not many folks are willing to spend $20 on something they don't know well. Something about <$15 is much easier psychologically.

Thirdly, price per oz with shaving soaps is one of the most useless metrics without more information. Yes, it now costs more per oz. Assuming you're talking about the "soap", rather than the "luxury cream soap" (that one is special since it undergoes a rot process similar to a cream), it is also a much harder and thirstier soap now. Cost per shave should be pretty significantly less compared to the original French style. Have you done the math? The French style took a ton of product per shave, the new one barely takes a dent even after weeks of use. Again, price per oz isn't helpful at all when determining even something like thrift and value.

Fourthly, economies of scale is a very real thing. There are fixed costs in things, which is why buying in bulk creates lower prices. For example, the container CB is using is a "fixed cost." It's an expense that doesn't change, no matter how much soap is in it. Labels are another one. Labor costs of applying labels, filling the containers and shipping are all also fixed costs. Packing materials are a fixed cost. Let's use some algebra to figure out how this might work!

20 (cost of old French formula) = f (our fixed cost of unknown value f) + 8s (8 oz of soap at unknown value s)

14 (cost of new formula) = f (our fixed cost of unknown value f) + 4s (4 oz of soap at unknown value s)

So subtracting the two equations from one another and plugging away we find that s = 1.5. Use that new value on the original formula and holy smokes we come to a fixed cost (f) of $8. So basically, between all of the fixed costs of stuff outside of the soap itself, such as labor (so like, Chris not working for free[what a jerk]), labels, containers, shipping supplies, printing and such, $8 of each tub of CB soap is not actually paying for the soap itself. After that fixed cost, you get $1.50 per oz of whatever is getting filled into the tub. And even then as I mentioned it is a much more efficient soap than the old French formula, so I'm not sure the value there.

Summary - Gah, this price per oz thing really bugs me, it's such a useless number since it's not apples to apples. If Chris changes the price of the same formula, with the same amount of actual soap, you have something. As is... not as much.

My brain hurts a little bit after reading this.

What were we talking about again? :confused1
 
What were we talking about again? :confused1

Essentially, $/oz is not as useful as say $/usage but the rest is cost accounting but there are a lot of errors in it (e.g. fixed costs are not the same as sunk costs and indirect costs but somehow they all are mixed together). Really it should be a case of :

Direct costs (ingredients, labour, container, processing, shipping etc) + indirect costs (equipment amortization, advertising, factory overhead, admin functions, finance charges, R&D, etc) if you want to do an economic analysis rather than a strictly financial analysis then you add in a normal rate return to see if you are making an economic profit or loss. The only thing that has really changed is that the ingredients costs and perhaps some processing costs have increased as well as some R&D, but R&D is a sunk cost and would show up across all product lines in a small business.

None of which really matters to us since we are only looking at how much it costs and if we think it's worth that cost. Obviously, some people have will willing pay a lot of money for soaps and creams while others want lower priced options. Those who look at the total cost of the soap may like the lower cost while others will note that the price/oz has risen and won't be so inclined to purchase the new line.

One of the biggest errors here is that the "s" in each equation is not the same so you can't treat them the same for algebraic purposes since they are not the same value. Price per ounce and cost per ounce is the evaluation that should have been used. Just saying...
 
All of these points and opinions being thrown around and not a single "YMMV" posted. Could this be the death of my most hated disclaimer?

Anyway, the owner of Catie's Bubbles runs his business as his full time job.
 
All of these points and opinions being thrown around and not a single "YMMV" posted. Could this be the death of my most hated disclaimer?

Anyway, the owner of Catie's Bubbles runs his business as his full time job.
YMMV should be whispered silently in your head after you read every post, no need to type it.

As for the full time business, it would make sense as to would increase.
 
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