I'm sure there is a formula, but we did the following...calculated the cost to us, and added what we felt was a fair "creating/handling" cost...so far so good; however, we are going to have to increase our "wholesale" cost due to recent price increases from our vendors. We also ask our retailers to not sell our products at a cost lower than what we sell the items for in our store...they can use our suggested price or a higher price, but we do not want to be undersold, etc. We're small and in many ways still trying to get out product out into the community, so taking a slight hit on profits is ok...we justify the hit as a way to market our product -- it's cheaper than advertising in the media.