One of the questions I’m asked the most relates to pricing. What is the “best” strategy for pricing 
your products or services? As small business owners and entrepreneurs, the answer isn’t one-size fits all. The truth is that it depends. In fact, I’ve written a series of articles to help you better price your products. This week, I will touch on the art of wholesale pricing.
It’s simple math: accounting for materials, labor, and expenses will allow you to reach your small business goals.
Source: A Simple Formula for Pricing Your Work | The Etsy Blog
Amazon has just launched a stand alone handmade section to compete with handmade companies like Etsy. Etsy has opened up a wholesale connection hub so artisans and small businesses can link with other shops and boutiques and sell their products, as you may have guessed, in wholesale. So if you’re interested in getting a new perspective on how to price your wholesale products, keep reading!
First off, the article linked on the quote above offers very good tips to help you formulate a pricing strategy. In essence, here’s the formula:
Materials + Labor + Expenses + Profit = Wholesale x 2 = Retail
This appears like a solid formula because it enables you to remain 
profitable, which is part of the reason you’re selling your product or service. Now, there are other considerations that must be made, such as the scarcity of your product, your brand’s positioning, and whether you can sustain said pricing strategy. Sometimes after calculating your wholesale price (using the formula above) you will find that your retail price is out of whack and you’re pricing yourself too high (customers ain’t buying!). I offer this different formula, as it allows you to remain profitable, and may not price you outside of your product/service’s range. Consider this
Materials + Labor + Expenses = Cost
Cost + 25% Profit = Wholesale
Cost + 50% (or more) = Retail
You can tailor and change your pricing in any way that makes YOU feel comfortable, as long as you meet or exceed the break even point (the point where your costs = your gains). If you don’t meet or exceed this break even point, then you’re losing money. Losing money isn’t always fun and makes for a terrible pricing plan.
Mind sharing your own wholesale pricing suggestion? Tweet me or leave a comment below. I’d love to hear your suggestions.
~Viva