A simple guide to help you price with confidence and clarity
Pricing can feel like one of the trickiest parts of running a small farm.
Most of us start out looking around at what others are charging and picking something that feels close enough. But over time, that usually leads to frustration—either you’re working hard without much to show for it, or you’re unsure why things aren’t selling.
The goal here isn’t perfection. It’s clarity—so you can price in a way that actually supports your work.
Know Your True Costs First
Before you set a price, you need to understand what it really costs to produce what you’re selling.
And it’s more than just seeds.
Think through everything that goes into each product:
- Seeds or starter plants
- Soil, compost, and amendments
- Water and supplies
- Packaging (bags, boxes, ties)
- Tools and upkeep
- Time spent planting, tending, harvesting, and prepping
It’s easy to overlook the small things—twine, labels, even the extra time spent weeding or washing produce—but those add up quickly. I wrote The Tiny But Mighty Farm for exactly this reason!
A simple way to track it
Pick a product and write it out:
- Product: Tomato plants
- Cost per unit: (materials)
- Time: 20 minutes
- Notes: started from seed, includes potting soil
You don’t need exact numbers right away. Just getting it on paper will give you a much clearer starting point. This is where I love to use our Tiny Farm Planner to help keep things organized.
Don’t Leave Out Your Time
This is where a lot of folks underprice without realizing it.
Your time has value. Even if you enjoy the work.
A simple way to account for it:
- Choose an hourly rate that feels fair
- Convert your time into a cost per item
Example:
- 15 minutes of work at $20/hour = $5 in labor
Now add that to your material cost. That’s your baseline.
Find Your Break-Even Point
Once you know your costs, it helps to know how much you need to sell just to cover your expenses each month.
What to include:
- Seeds and supplies
- Market fees
- Fuel and tools
- Packaging
- Labor
The formula:
Break-even units = Total monthly cost ÷ Price per item
Example:
- Monthly costs: $600
- Price: $20
$600 ÷ $20 = 30 items
That means the first 30 items cover your costs. Everything after that is where you begin to see profit.
Choosing the Right Markup
Different sales channels call for different pricing.
Here’s a general guide:
-
Wholesale: 30–40% markup
Larger orders, less time selling, lower margins -
Farmers Market: 50–100% markup
More time, direct sales, higher margins -
CSA or Bundles: Variable
Based on weekly value across the season
The right markup depends on how and where you’re selling—not just the product itself.
Simple Pricing Formulas
Once you’ve got your costs and markup in mind, pricing gets much more straightforward.
Market Pricing
(Cost + Labor) × Markup = Price
Example:
($2 + labor) × 1.75 = final price
CSA Pricing
Weekly value × number of weeks = total share price
Example:
$25/week × 16 weeks = $400
Wholesale Pricing
Retail price × discount rate = wholesale price
Example:
$4 × 0.70 = $2.80 per unit
Practical Tips for Pricing at Market
A few things that make a difference over time:
- Round your prices to simple numbers
- Pay attention to what actually sells
- Don’t aim to be the cheapest
- Adjust gradually instead of making big jumps
- Factor in your time at market, not just growing
If you’re consistently selling out early, that’s often a sign your prices could come up a bit.
A Few Questions to Think Through Now
- Is there a product you might be underpricing?
- Did anything surprise you when you added up your costs?
- Which pricing approach fits best with your goals and schedule?
Friend, I know you can do this. Pricing gets easier the more you work through it. If you'd like some additional resources, grab my Small Business Big Profit Guide and jump right in! A little clarity here goes a long way toward building something that’s both sustainable and worth your time.
