How I started badly
Hi, I'm Jenn. I took one perfume-making class, loved it, and thought: why not sell these? So I opened an Etsy shop out of the one room I rented in a shared house. No plan, no LLC, just $100 and a lot of boxes.
The start
- One perfume-making class
- All my stock in one rented room
- Supplies from Amazon
- My personal bank account, no business account
- No LLC
- $100 to start
The math I skipped
Cost of one bottle sold
| Perfume bottle | $2.30 |
| Essential oil | $0.40 |
| Perfume solution | $0.95 |
| Shipping | $8.00 |
| Miscellaneous | $3.00 |
| Other costs (fees, upkeep) | $2.00 |
| Total cost per bottle | $16.65 |
| Margin target | 40% |
| Lowest price to sell at | $28 |
My first 5 orders lost me $45. I forgot to count Etsy's fees, then gave out a discount code on top. Shipping alone cost more than everything inside the bottle. Twenty minutes with this table would have caught all of it.