How to price loose goods by the gram
Sencha, smoked paprika or a house espresso blend, the math is the same: work out what one gram really costs you, add the packaging, then set the price so your margin is left over.
- Cost = bulk cost ÷ usable grams × pack size + pack cost
- Price = cost ÷ (1 − target margin)
A worked example. A 1 kg bag of loose-leaf tea costs you $49. You allow 2% for loss, so you plan on 980 g, and each gram costs $49 ÷ 980 = $0.05, or $5.00 per 100 g. A stand-up pouch with a label costs $0.60. A 50 g pouch costs 50 × $0.05 + $0.60 = $3.10. To keep a 60% margin, divide by 0.40: $7.75. The bag fills 19 of those pouches. These are the calculator's starting numbers:
| Pack | Cost | Price at 60% | Per 100 g | Per oz | Packs per bag |
|---|---|---|---|---|---|
| 25 g | $1.85 | $4.63 | $18.52 | $5.25 | 39 |
| 50 g | $3.10 | $7.75 | $15.50 | $4.39 | 19 |
| 100 g | $5.60 | $14.00 | $14.00 | $3.97 | 9 |
| 250 g | $13.10 | $32.75 | $13.10 | $3.71 | 3 |
Prices round up to the next cent, so $1.85 ÷ 0.40 = $4.625 becomes $4.63.
Packaging is a cost per pack
A pouch, jar or tin costs the same whether it holds 25 g or 250 g. In the example the $0.60 pouch is almost a third of the cost of a 25 g pack and under 5% of a 250 g one. Glass jars and tins cost more than pouches, so price a spice jar and a refill bag of the same spice as separate products, each with its own pack cost.
Put everything that goes into one pack in the pack cost: the pouch or jar, the label, a desiccant or a scoop if you add one, and a per-pack amount for weighing and sealing time if you want your time paid for.
Loss: the grams you never sell
Loose goods lose weight between the bulk bag and the customer. Dust and broken leaf collect at the bottom of the sack. A pinch stays on the scale pan or in the funnel. You brew a cup or grind a sample to check a new lot. And you probably put a gram or two over on each bag so none goes out underweight.
The calculator starts at 2%, which turns a 1 kg bag into 980 sellable grams. In the example that moves the cost from $0.049 to $0.05 per gram, or $0.10 per 100 g. To find your own number, weigh the bulk bag when it arrives, add up what you packed from it, and compare. If you roast coffee, enter the roasted weight that comes out of the roaster, not the green weight that went in: beans lose water as they roast.
Price ladders: why 25 g costs more per 100 g
Look at the per 100 g column: $18.52 for a 25 g pouch, $13.10 for 250 g. The tea costs $5.00 per 100 g in every size; the pouch is what changes. Spread over 25 g, $0.60 adds $2.40 per 100 g. Spread over 250 g, it adds $0.24. Small packs need a higher price per gram just to keep the same margin.
That is also a sales tool. A 25 g pouch is an easy first order, and a customer who comes back sees that the 100 g and 250 g sizes are better value per gram. When you round to shelf prices, round up and check that the price per 100 g still falls as the pack grows.
Customers who shop in ounces? Pick oz or lb for the bulk weight and the packs, or use the ounce and pound presets. One ounce is 28.35 g and a pound is 16 oz, or 453.6 g. The per oz column puts a 4 oz bag and a 100 g bag side by side.
Decanting perfume or other liquids by the ml? The decant price calculator does the same math for vials. More on selling bulk goods in portions in the guides.