Come up with a handmade pricing strategy that pays you what you deserve. Plan out your pricing strategy, calculate the best price point based on your expenses and take the guesswork out of pricing. Inside this free Google Sheets calculator and template, you can log down your product expenses and add a retail markup that makes sense for your business.
How to use the product pricing formula calculator
Enter your details below to access the link for the product pricing calculator and template. The template has been designed in Google Sheets so you will need to copy it over to your own Google Drive. To do this, click on the link you receive, select File in Google Sheets and Make A Copy.
Now you’re ready to start finding the right price point for your handmade items.
Write down your pricing variables
You can read about pricing strategy and setting the right markup for your product. To get your calculator working, you’ll need to figure out two things to begin:
- Your hourly rate for labor. This is your hourly rate for labor taken to make each item. Set this to zero if your shop is a hobby or you don’t wish to include labor.
- Your retail markup. This is the percentage of profit you want to make from each item. Average markups can range anywhere from 40% to 200%
List down your expenses
Next, you’ll need to note down expenses for each product or product category you carry in stock. This includes
- Costs of materials and supplies used to make each item
- Production partner costs
- Costs associated with equipment use
- Costs of packaging items
- Costs of your available shipping services
- The fee structure of the platform you sell on
- The hourly rate you would usually charge for labor and how many hours you spend on each item
About the Product Pricing Calculator and Template
Inside your download you will receive:
- A product pricing calculator and template in Google Sheets format
- Pre-designed and simple to update
- Space to list up to 3 products. Simply copy and paste the products to add more.
- This is a digital download which means you can come back to update your pricing strategy as your business changes.