About the Etsy Pricing calculator
The Craftybase Etsy Pricing Calculator is a free service designed to show you your estimated margin given a desired markup on your manufacture costs.
To use the pricing calculator:
1. Select the country where your business is based. Any currency conversions required from USD will be calculated using the daily EU rate of exchange.
If you choose a country based in the EU, you will then be asked if you have a VAT ID. This is in order to calculate any VAT that will be applicable to your seller fees from mid 2016 ( See What you need to know about Etsy's new VAT seller fee pricing for more details). To see your tax free fees / fees before the mid year change, select this checkbox.
2. Select your Payment Method that the sale will be processed through. For most, this will now be Direct Checkout. If you have opted out of using Direct Checkout then your orders will be processed directly via PayPal. Your estimated transaction fees will be calculated based on the payment method you have selected.
3. Enter your desired Markup. This is the percentage that we should use to multiply your manufacture costs by in order to find your sale price. 0% is your base cost price: the cost to you of producing your products without any profit margin. A typical margin for handmade items is 80% - 150%, however this depends on the type of products you are producing and who you are selling them to.
4. Enter your Labour Cost. To calculate this, you'll need to set an hourly price for your time. Again, this can vary based on the types of products you create and how much you wish to charge for your time. If you don't want to set a labour cost, just leave this as 0.00.
5. Now enter your Materials Costs. First, make a list of every consumable material that you have used to produce the item - let's call this your "recipe". For each item in your recipe, calculate your manufacturing unit price for each: this can be calculated by averaging all your purchase history for the material and converting it to a suitable unit of measurement (e.g pounds to inches). Don't forget to include hidden costs like shipping and taxes paid - these are hidden costs of production that are often forgotten in these calculations. Finally, calculate how much you used up and multiply this by your manufacturing unit price.
If you are already using Craftybase to track your material usage, you don't have to calculate this: just simply take this number directly from your recipe total on the product page. Better yet, you can just take a look at your Pricing Guidance where these calculations will appear automatically for every product you have imported from Etsy.
6. Once you have entered your variables, the calculator will show you three things: your recommended sale price, the total amount of fees payable in the sale, and your estimated margin (profit) you will make on the sale.
Your recommended sale price is calculated from your cost of manufacture and your desired markup.
The total fees are calculated by adding together the listing fee, etsy seller fee and any transaction fees generated from your selected payment method.
Your estimated margin is calculated from your sale price, minus the costs of sale. This includes your material and labour costs as well as the fees for selling via the Etsy platform.