A simple pricing worksheet

Start with your total variable cost per sale, including materials, transaction fees, packaging, and delivery. Include labor where appropriate.

1. Estimate the variable cost per item.
2. Choose a target gross margin.
3. Calculate price = variable cost ÷ (1 − target margin).
4. Compare that price with what customers are willing to pay.
5. Account separately for fixed costs, taxes, returns, and marketing.

Example: If variable cost is $12 and target gross margin is 40%, price = $12 ÷ 0.60 = $20. Gross profit is $8 before fixed costs and taxes.

This is an educational starting point, not a guarantee of profitability.