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You sell something, the notification pops up, you feel amazing... and then you wonder why your bank account doesn’t look any different. If that sounds familiar, the problem usually isn’t sales. It’s pricing.
Most small shops undercharge, not because their products aren’t worth more, but because they forget the hidden costs. Here’s a simple way to price your products so every sale actually pays you.
💡 Want the worksheets ready to go? My Shop Finance Tracker includes a pricing calculator, income and expense logs and a monthly profit summary, all in one fillable PDF.
1. Add up your real cost per item
Start with everything one item costs you. Not just materials, everything:
- Materials: fabric, wax, paper, beads, ink
- Packaging: box, tissue paper, stickers, thank-you card
- Your time: hours per item x the hourly rate you want to earn
- Platform fees: listing and transaction fees
- Payment processing: card and payment provider fees
- Shipping: if you offer free shipping, it’s your cost now
- Ads: your ad spend divided by the items you sell
- Overhead: a small share of tools, software and equipment
The one most people skip? Their own time. If you don’t pay yourself, you’re not running a business, you’re running an expensive hobby.
A small digital shipping scale helps you know your real postage costs before you price.
2. Add your profit on top
Once you know your total cost, decide what you want to earn on top of it. Profit is what lets you grow, buy better tools and pay yourself.
Here’s a simple example (example numbers only, use your own):
- Materials: $3.20
- Packaging: $1.10
- Labor (15 minutes at $20/hour): $5.00
- Fees and shipping share: $2.70
- Total cost: $12.00
- Profit you want: $8.00
- Price: $20.00
- A thermal label printer, for fast, clean shipping labels.
- A desk calculator with big buttons, for quick pricing math.
Fees are often a percentage of your sale price, so after you choose a price, double-check that the fees still leave you the profit you want. Always use the current fees from your platform’s official fee page, because they change.
The Shop Finance Tracker has a pricing calculator page that walks you through every one of these lines, plus a price list for all your products.
3. Check the market (but don’t copy it)
Look at similar products to see a price range. If you’re much cheaper than everyone else, you’re probably undercharging. Remember: your quality, your story and your customer experience are part of the value too.
4. Round to a price that feels right
$19.95, $20 or $22? Pick a price that’s easy to understand and fits your brand. Small changes like this can make your products feel more premium.
5. Track every sale and expense
You can’t know if your prices work unless you track your numbers. Log your sales and expenses every week, then total them once a month. Keep your receipts in one place, a simple expanding file organizer makes tax time much easier.
Two more tools that save time when you sell physical products:
Or keep everything in one place: the tracker includes an income log, expense log, monthly profit summary and yearly overview. 👉 Get the tracker here
6. Review your prices every few months
Material costs go up. Fees change. Your skills improve. Every quarter, look at your most-sold and most-profitable products and ask: do any of my prices need to go up?
Please note: this post is general information about pricing, not tax, legal or financial advice. For questions about taxes or your specific situation, talk to a qualified accountant in your country.
Know your numbers, grow your shop
I made the Etsy & Shopify Shop Finance Tracker: a 22-page fillable PDF with a pricing calculator, income and expense logs, monthly profit summaries, an invoice template and a tax-time organizer. Price with confidence and always know your real profit.
👉 Get the Shop Finance Tracker
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