Pricing Etsy products – a guide and pricing calculator

Pricing Etsy products can be intimidating.  You don’t want to price too high because then people won’t buy and if you price too low, you won’t cover your costs or make any profit. 

I totally get it. 

But don’t worry – I’m going to arm you with a failsafe Etsy pricing calculator that breaks down the best way for pricing Etsy products.  Follow the simple steps and then you’ll have the confidence to open your shop doors and sell. 

Pricing Etsy products: the calculator

So, here it is:

(Materials + Labour + Expenses + Profit) x 2 = Retail

Now let’s go through every part of this Etsy pricing calculator and break it down.

Materials

The materials section of the equation includes everything that you need to make the product.

Labour

When working out the labour costs when pricing Etsy products, think how much would you want to be paid per hour to make the product. That said, you need to pay yourself just as an employer would.

Expenses

Mmm, this one’s trickier – Etsy fees, office supplies, rent, utilities, online subscriptions, computer, – the list seems endless.  How can you work out what amount to plug into the pricing calculator?  Well, stay with me here because I have a way of working this out for you:

First, track all of your expenses throughout a month.  Include Etsy fees, office supplies, rent, utilities etc.  (I have a handy finance planner that can help you with this.) Next, add all of your expenses together to get a total for the month.

Following this, determine the number of items you want to sell in a month. After that, divide the total expenses by the number of items you want to sell in a month.  This will give you a value for your expenses to use in the calculator.

And for larger investments or equipment like computers and printers, estimate how long you think each will last and how many products they will allow you to make. 

For example:

If my computer cost £1200 and I think it will last 3 years and I make 20 products per week then my calculations will be:

So, that’s £0.38 to add to the expenses to cover the cost of my computer. 

Profit

The amount of profit you’d like to make on each item when you’re pricing Etsy products is completely up to you. Essentially, this depends on your vision for your business and how you want it to grow.

Pricing Etsy products: a summary

So, Materials + Labour + Expenses + Profit will give you your wholesale price and to work out the Etsy retail price you multiply by 2.

And there you have it. The perfect price for your Etsy product.

Let me know how you got on with pricing your products.  What’s your best pricing tip?

Had success pricing Etsy products?  Have a look at my other posts designed to help you grow a profitable Etsy business.

Photos for digital products – an Etsy guide

Your Etsy product description – a how to write guide

Etsy business – how to be profitable selling printables