How To Price Your Products On Etsy For Maximum Profit

There are a lot of pricing formulas out there and they are great. However, you have to pick a formula that works best for you to price your products. The most common and simplest formula would be: Materials + Labor + Overhead, then multiply the answer by two – that would be your wholesale price. For the retail price, it would be the wholesale price multiplied by two. If this formula works for you, then great. However, you also have to consider all those fees from Etsy just be sure that you’re getting enough profit from your products.

How to Calculate the Cost of Your Materials

When you’re calculating the cost of your materials, you have to include every component in your item. For example, you’re selling plush toys. You have to include the cost for materials such as fabric, thread, label, stuffing, and rickrack. You must consider the price of what you used for one item. For example, you brought 5 yards of fabric for $20 and used only 1 yard – that would be $4 for that one piece of item.

How to Calculate Labor Costs While Your Price Your Products

First, you have to set an hourly rate and pay yourself and your other team members a fair wage. Several professional crafters would go for $12 to $20 per hour. Now that you have your hourly rate, you have to consider the time it takes for you to do your items – from designing to shopping for supplies, constructing the item, and taking photos of the item.

What Makes Up the Overhead?

craft supplies

Your overhead cost may include the following:

Office supplies
Tools used to make your items
Packaging supplies
Utilities (electricity, internet connection, etc.)
PayPal Fees
Etsy Fees

The cost for the overhead can be an estimate because it’s hard to calculate the exact cost. To make things easier as you price your products, you can calculate your overhead by coming up with an average rate for all of them. You also have to come up with an estimate of how many items are sold per month or year. Here’s an example: Let’s estimate the monthly cost for the following: Office supplies – $20 Tools – $20 Packaging supplies – $30 Utilities – $60 PayPal fees – $5 Etsy Fees – $50 The sum would be $230 per month. Let’s say, you’re able to sell 50 pieces per month for one item. That would be $230 divided by 50, which is $4.60. That $4.60 is your overhead cost for each piece.

Example Computation to Price Your Products

Materials – $3.50 Labor – $5 Overhead – $4.60 That would be ($3.50 + $5 + $4.60) × 2 = $26.20 for the wholesale price. Then $26.20 x 2 = $52.40 for the retail price.


Once you have priced your products, learn how to start bringing in that money by reading our article, How To Sell On Etsy Successfully

How To Price Your Products On Etsy
Article Name
How To Price Your Products On Etsy
Getting sales on Etsy is great, but once you're getting sales, you need to make money. This article will tell you how to price your items to make the most profit.
Publisher Name
How To Sell On Etsy
Publisher Logo

Recent Posts

Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Want More Etsy Sales?

Learn how thousands of sellers are finding their financial freedom on Etsy and how you can do that for your self!


Join Our Newsletter

Get updates when we post new articles and training, and get notified of any promotional offers!