There is no fixed price when it comes to how much it will cost you to start a bath bomb business. This is because the amount it will cost you to start a small-scale bath bomb business is going to be different from what it will cost you to start a medium or large-scale bath bomb business.
Apart from that, there are other factors that can influence the cost of starting a bath bomb business and that is what we will discuss in this article.
8 Factors That Can Influence the Cost of Opening a Bath Bomb Business
The Scale of Operation
If you choose to start a small-scale home-based bath bomb business, you will spend far less than someone who starts the business from a rented or leased facility.
The operational costs for running a small-scale bath bomb business will generally be lower costs compared to a medium-scale, and larger bath bomb business that operates from a commercial production facility.
Your Choice of Location
If you choose to start your bath bomb business in a high-rent urban area, you should be prepared to spend more money on rent or lease, and the location will likely attract higher overhead costs, such as rent and utilities, compared to a rural or home-based setting.
Interestingly, you can set up your production facility on the outskirts of the city where you can get cheaper rent and still make an impact on the business.
Ingredients and Materials Costs
You should create a budget that covers the costs of purchasing bath bomb ingredients and materials such as baking soda (sodium bicarbonate), citric acid, Epsom salts (magnesium sulfate), cornstarch, essential oils,
Fragrance oils, carrier oils, witch hazel or water, natural colorants (e.g., mica, clay, powdered herbs), and packaging materials (e.g., shrink wrap, labels, bags).
Note that the quantity, quality, and type of ingredients and materials you choose for your bath bomb production can vary in cost.
Equipment and Machinery Cost
Part of your startup cost should be your expenditure for purchasing equipment and machinery such as a mixer or blender, paddle attachment (for mixer), sifter or sieve, scale (digital), double boiler or microwave (for melting oils),
Heat-resistant containers (for oil melting), dehumidifier (for drying bath bombs), packaging machinery (if automated), and vacuum sealer (for shrink-wrapping).
As expected, high-quality brand-new bath bomb equipment and machinery will cost more, when compared to used or low-quality ones.
Note that when you invest in high-quality brand-new bath bomb equipment and machinery you will be able to use it for a long time, and they will attract low maintenance costs, at least for the first three years of using them.
Packaging and Branding Cost
The design and quality of your packaging and branding materials are part of what will affect your startup costs. As expected, custom packaging and branding efforts will definitely be more expensive than generic or off-the-shelf options.
Regulatory Compliance, Licensing, and Permits
For a bath bomb business that wants to legally operate in the United States, you should budget for business license, sales tax permit, home occupation permit (if home-based), health department permit (for cosmetics), fire department permit (if using flammable materials), zoning permit, environmental permits (if applicable),
Federal Employer Identification Number (EIN), trademark or copyright registration (if applicable), import/export license (if sourcing materials internationally), and special event permit (for markets or fairs).
Your Staffing Cost
The fact that you cannot start and operate a bath bomb business on your own means that you must have a budget for recruiting, paying, and training your employees.
Staffing costs refer to the expenses associated with hiring, compensating, and managing employees within an organization.
For a large-scale and standard bath bomb business, you must be ready to recruit a production manager, sales and marketing manager, product development specialist, quality control inspector, packaging and labeling specialist,
Customer service representative, e-commerce manager, accountant/bookkeeper, manufacturing assistant, and driver. Basically, the higher the number of staff members you recruit, the more you are going to spend.
Marketing and Distribution
Trust me, if you want your bath bombs to be in every nook and cranny of your city, state, and country, then you must create a robust budget for your marketing and distribution effort.
Your budget for marketing and distribution should cover the cost of purchasing distribution trucks and engaging in marketing campaigns.
Also, expenses related to building a website, social media marketing, advertising, and distribution channels must be considered.