HSCG Price Calculator

Setting the right price for your product can be tricky – but our HSCG Price Calculator is here to help!

Using standard accounting principles for “Cost-Plus” or “Markup” pricing, the HSCG Price Calculator walks you through the true cost of making your product. It is also adjustable, to fit your personal needs. And as an HSCG member, you have the added benefit of being able to save your calculations, for easy reference.

For best results:

Install Javascript and be sure your browser is up-to-date.
The calculator works on mobile devices, but worksheets display best on a laptop or desktop monitor.
Click the “I” icon for more information about each value entry

Tip:
If you are new to setting price or using our calculator, read our helpful guide before you begin:
Understanding how price is calculated

Step One Product Information

Product Name * Character Limit: 50 This can be a single product (i.e. "Lotion (Lavender)"), a product category (i.e. "Soap"), or even the average of all products. If you are going to save this calculation, use a unique name so you can easily identify it later.

Quantity Per Batch *

The amount of product produced in one batch. Don't count damaged product.

Item Type*

If you are doing these calculations to determine a profitable sale price, don't count any products given away, kept for personal use or set aside as a retain sample. Only count the number of products that are actually going to be (or were) sold in the batch.

Step Two Raw Materials

Enter everything that is used in the batch, including raw materials, fragrance, colorants, and additives. Also list the container and lid (if any), label and packaging matieral and label printing costs. Finally, include anything that is used up during production such as pipettes, gloves, masks, other disposable supplies, and cleaning materials necessary for cleaning up after the batch is complete.

Remove Selected Add Raw Material

	Item & (Supplier)	Amount Purchased	Amount Used	Cost \| Shipping	Batch Cost
	Coconut Oil (Brambleberry)	7 pounds	6 oz	$16.75 \| $10.48	$1.46
	Please enter at least one raw material in Step Two.

Update Totals

Total cost of materials for batch: $0.00
Allowance for loss:

%
Total cost of materials including loss: $0.00
Material cost per Unit$0.00

Step Three Direct Labor

For the most accurate results, break out the different actions involved in making the batch and assign an hourly wage that is commensurate with the task. Some things can be done by inexperienced (cheap) labor and some require more skill and thus would be paid at a higher rate.

Remove Selected Add Direct Labor

	Task	Minutes	Hourly Wage	Labor Cost
	Measure out ingredients	25	$12.50	$5.21
	Please enter at least one direct labor in Step Three.

Update Totals

Allowance for labor taxes and costs:

%
Total cost of direct labor for batch: $0.00
Direct labor cost per Unit: $0.00

Step Four Product Sale Price

Product Markup *

The Product Markup the difference between the wholesale price and the product cost. It is added to the cost of the product in order to cover the costs of doing business and create a profit. Normally the Markup is created by multiplying the product cost by a specific amount. Typically that the markup is at least 2 times the product cost. In a handcrafted soap or cosmetic business, a markup of at least 2.5 times the product cost is recommended in order to ensure long term viability for your business. However, there is no rule that says it can't be more; luxe or high end products may have a product markup of 3 or even 4 times the product cost.

Example: The cost of a product, including materials, labor and overhead, is $1.00. A product markup of 2.5 would put the wholesale sales price at $2.50 ($1.00 x 2.5). In a business, the $1.50 difference between the product cost and the wholesale price would be the gross profit that covers the expenses of running the business such as office supplies, promotion, administrative costs, travel, craft show fees, research and development, shipping, etc.

The cost + markup is the lowest price the product could be sold for and still cover all business costs with (hopefully) a small profit.

Adjust for Wholesale Reps 15% commission?*

If you use Wholesale Reps now, or plan to use them down the line, you should factor their 15% commission into your wholesale price.

Wholesale Markup *

Wholesale price per Unit: $0.00

Suggested Retail Price per Unit: $0.00

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