Shopify Product Pricing Calculator
Introduction
Welcome to the Shopify Pricing Calculator, a specially designed tool to help crafters, artisans, and small business owners better understand their product pricing strategy and set sales targets.
Our tool is here to help you achieve a sustainable and profitable income level by optimizing your product pricing and sales volume.
The calculator works by taking into consideration the income you wish to make, the current price and cost of your product, and your estimated weekly sales. With this information, it will calculate your net income and compare it with your desired income, providing useful insights and actionable recommendations.
How to Use
- Desired Income: Enter the amount of income you would like to make per week.
- Product Price: This is the current selling price of your product or the average selling price of all your products.
- Product Cost: The cost to make one product. Consider the cost of materials, labor, and any overhead costs involved in its creation.
- Estimated Weekly Sales: Enter the number of items you to sell in a week. (This could be based on past sales data or estimated number of products sold.)
Press “Calculate”
The calculator will provide you with your total sales value, total costs, net income, and how far you are from your income goal.
It will also suggest a new product price that could help you reach your desired income or how many additional items you need to sell at the current price to meet your income goal.
Conclusion.
By adjusting the product price and number of product sold it will help you to recognise the true value of your products to sustain your business. Note that this tool doesn’t include any other costs like advertising, shipping and hosting which also need to be accounted for. However, it will still provide a good indication of the sustainability of your business and help you to set sales targets.
Form Legend:
- Desired Income: Your weekly income target
- Product Price: The selling price of your product
- Product Cost: The cost to produce one product
- Estimated Weekly Sales: The number of items you estimate to sell per week.
- Total Sales Value: This is the total amount you would generate from selling the estimated number of items at your current price.
- Total Costs: The total cost to produce the estimated number of items you plan to sell.
- Net Income: Your income after subtracting the total costs from the total sales value.
- Income Difference: The difference between your net income and your desired income.
- New Price Required: The new product selling price needed to achieve your desired income, keeping the estimated sales constant.
- Additional Sales Required: The number of additional products you need to sell at your current price to reach your desired income.
