I’m not a fan of formulas. Say Bob takes three hours to cut his project. He bought his lumber for the project at retail. Now, Bill can cut the same project in 45 minutes, and buys his lumber wholesale. If they use the same formula, guess who’s will sell?
the way I price is, I look at the item and decide what I would pay for it. Then if I’m going to sell it on my Etsy store, I’ll add what Etsy charges me.
Now for friends and family, I always tell them I will give them a good deal. This tells them that yes, I’m going to charge them. For the most part, they are willing to pay full price anyway because they already know what is involved to make the item.