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.  

Pricing is especially difficult with digital products because there are no physical materials to account for.

Just bear in mind that it may take some trial and error to find the right price point for your customer. There is no magic formula for pricing as every product and shop is different.

However, that said, I do have a pricing calculator you might like to try to help your figure out the best price for your Etsy product.

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. However, when you’re making digital products, this cost is minimal. It’s one of the advantages of making digital products.

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

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, this is how we work this out:

First, track all of your expenses throughout a month.

Include Etsy fees, office supplies, rent, utilities etc.

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 are pricing Etsy products is completely up to you. Essentially, this depends on your vision for your business and how you want it to grow.

So,

Materials + Labour + Expenses + Profit will give you your wholesale price

and to work out the Etsy retail price you multiply by 2.

Now use the pricing calculator on page 41 of your workbook to price your product perfectly.

Alternatively, Craftybase have a handy pricing calculator you can use. Try it out here.