To price a 15 ml bottle of lavender oil you add up its full cost first: the bulk oil and bottles by the batch, your time at an hourly rate, the label and box, and a share of overhead like rent and power. That's what one bottle costs you. Then set the price so that, after card and selling fees, it leaves the margin you want: price = full cost ÷ (1 − margin − fee rate). For a 15 ml bottle of lavender oil that costs $2.44 to make, a 70% margin after 3% fees means $9.02, rounded up to $10.00. The oil is most of the cost, and it varies widely by oil: a kilo of rose costs a hundred times a kilo of orange. Shops pay about half of retail, so the retail price has to leave room for it. In the example below, a Pennsylvania apothecary prices rebottled lavender oil for its shop and others.
The short version
- Full cost = oil and bottles a bottle + your time + label and box + overhead.
- Price = full cost ÷ (1 − margin − fee rate).
- Count your time at a real hourly rate, even if you don't pay yourself yet.
- Price each oil from its own bulk price: they differ a hundredfold.
- A kilo fills about 74 bottles of 15 ml.
- Check what wholesale leaves after full cost before saying yes.
- TaroStack keeps bulk oils and bottles counted and costs every batch. More below.
What goes into a bottle's cost
| Part | How to count it |
|---|---|
| Oil and bottles | The batch's cost ÷ bottles a batch |
| Your time | Hands-on minutes for the batch ÷ bottles × your hourly rate |
| Label and box | Per bottle |
| Overhead | Rent, power, tools, spread over the bottles you make |
| Fees | Card and market fees as a share of the price |
How long the oils keep is in essential oils shelf life, and the apothecary's lip balm margins in lip balm profit margin.
An example: a 15 ml bottle
Elder & Oak Apothecary, the made-up apothecary in Pennsylvania I use in these examples, rebottles a kilo of lavender oil into 74 bottles of 15 ml:
| A kilo, rebottled | Amount | Cost |
|---|---|---|
| Lavender essential oil, bulk | 1 kg | $90.00 |
| Amber bottles, reducers and caps | 74 | $33.30 |
| A batch | $123.30 |
| A bottle | Cost |
|---|---|
| Oil and bottles, $123.30 ÷ 74 | $1.67 |
| Time, 60 minutes for the batch at $20 an hour ÷ 74 | $0.27 |
| Label and box | $0.30 |
| Overhead | $0.20 |
| Full cost | $2.44 |
At a 70% margin after 3% card fees, the price is $2.44 ÷ 0.27 = $9.02, so $10.00. At $10.00 a bottle, each leaves $7.26. It sells in its own shop at $12.00, which leaves $9.20. Other shops pay $6.00, which leaves $3.38 a bottle. What goes on an oil's label is in cosmetic labeling requirements.
Get the calculator
Download the essential oil price calculator. One sheet: type the batch's supplies, amounts and costs, the bottles it makes, the hands-on minutes, the label and box and overhead, your hourly rate, card fees and the margin you want; the full cost, the price for your margin rounded up, and what a wholesale price and a test price leave fill in. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
The calculator prices one oil on paper. Twenty oils with bulk prices from $25 to $3,000 a kilo, a harvest that doubles lavender's price, and bottles that went up a nickel change what each bottle really cost.
How TaroStack does it
TaroStack keeps bulk oils and bottles counted, and costs every batch.
Supplies in their units. Bulk oil bought by the kilo is used by the milliliter, and bottles by the each.
Designs as recipes. Each oil is a recipe of its supplies, so a batch takes them off stock and is costed from what they cost, and good and rejected pieces are recorded.
Reordering. Supplies come up on a reorder list in days of cover, worked out from how fast they're used.
| The job | Spreadsheet | In TaroStack |
|---|---|---|
| Supplies on hand | Count the shelf | Stock in its own units |
| What a batch cost | Prices you type | Costed from what you paid |
| Bottles rebottled after a spill | Not counted | Good and rejected on each batch |
| When to reorder | When it's low | Reorder list in days of cover |
Recipes, units, costing and reorder lists are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.
