Correct pricing seems to be a challenge to many producers. When asked how to price products, I typically tell artisans and professional crafters to start with the following simple formula to develop your wholesale/retail pricing:
Cost of Goods (as listed above) x 2 = Wholesale Price
Wholesale Price x 2 to 2.5 = Retail Price
A different approach to pricing, listed below, is from a post by Jane Buttons on her Creative Product Blueprints Facebook group.
Using a pricing system not a formula 
1. Start with the End in Mind: This is where most people get it wrong. They don’t start with the retail price (this is the price that people would pay in a store). Instead, they start with their costs. The place to start with your pricing is at the retail level. What should your product sell for in a store? Right now don’t worry about what it costs you to make, that will come later.
To find out prices in the marketplace, know your competition; learn about those other products that are similar in style, workmanship and quality to your product or idea…
And you’ve got to compare apples to apples not apples to hamburger. So if your product is high end please don’t compare it to items sold at Walmart. Compare the quality of the materials, workmanship, and design and where it’s made…
2. What sets your product apart from the competition? Once you’ve done your research you should be able to clearly see what makes your item different from similar products that are already in the marketplace.
If you look like everyone else – who wants to buy what you’ve got? It’s absolutely critical that your products have a point of view that separates you from the pack.
Create a list noting these. Eventually, they will become your USB (Unique Selling Proposition) which is what your product offers or promises that is like no other company. If your product is just like everything else out there then you may need to go back to the drawing board and rethink or revamp your idea.
3. Know your target market: Understand who wants your product, who is your ideal consumer? Who are they, where do they hang out, where do they buy and what are they looking for? What makes them want to buy? What kind of prices are they willing to pay for your products?…
4. Come up with your Ideal Price: From all your research come up with your ideal retail price. It will likely be a “price range” rather than an exact price.
5. Calculate your Cost of Goods: Your cost of goods is everything that goes into the manufacturing or making of your product. That’s every single component part including labor, shipping costs on raw materials, labels, packaging etc. EVERYTHING
• Everything you need to manufacture your product by quantity…
• Then calculate the actual costs. It’s easiest to put it on a spreadsheet.
• DO NOT forget labor costs! If you are doing the manufacturing yourself – pay yourself what you would have to pay someone else to do it..6. Consider your hidden costs: These are factors that may or may not affect your bottom line such as – sales commission and overhead. You can add in a factor to your cost of goods…
7. Compare your cost of goods to your ideal price: from your research on comparable products compare your ideal retail price point to your cost of goods and see what that difference is. Here is where you will be able to make some decisions on how to proceed.
The difference between what it costs you to make a product and what you sell the product to the retail stores is your profit margin. For example, if it costs you $5 to make a product and you sell it to the stores for $10 your margin is 50%. If your wholesale price to the store is $15, then your margins are 66.7%.
It works the same way from the store’s perspective… Working backward you can figure out what the store will sell it to their customers for – and in turn, know approximately where your numbers need to be to allow the stores the ability to make money.
8. Now you know if your Price is Right! What happens if you take the ideal retail price – cut it in half – where is the comparison now? Are you pretty close? If so you’ve missed the mark. There is no profit which means time to go back to the drawing board and either reduce your material or labor costs or change the product completely or start over.
… I like to work towards a 50% Gross Profit if at all possible and the market will bear it. In the end, it’s not about what it costs to make a product; it’s about what someone is willing to pay. It’s about knowing the competition and knowing what sets your product apart from the rest of the pack. It’s not about what you want to make, it’s what your target market wants.
Check out more important tips by joining Jane Buttons Facebook group: Creative Products Blueprint