Pricing Process w/ Example!

I'd like to be very transparent about my pricing process! In case you think anything is too expensive, or wonder why anyone would pay for that, here's the standard procedure I use when pricing items!

This example is based off a product that I didn't end up making. I start with some simple things: the product I'm pricing, the time it took to make the product, and the hourly wage I'm paying myself. Then, by multiplying the hourly wage by the time it took, I get the labor cost. Next, I move on to materials cost, accounting for the unit price of the yarn, the unit weight of the yarn in ounces, and the amount of yarn used (also in ounces). The amount of yarn used divided by the unit weight of yarn multiplied by my unit price for yarn gets me my materials cost. I add in Etsy's listing fee, and I get my preliminary price.  I multiply the preliminary price by the percentage cut that Etsy takes, and I get my preliminary cost with fees. Finally, I factor in how much I would need to make a good profit margin, and I compare this final price to the market price. It's a lot of work, but it's the best method I've come up with for pricing the items. If my prices ever seem high, this is the amount of work I have to account for when pricing!