Hey Briana, thanks for taking the time to write this up!
Price Book categories aren't something we can do today. Items live in one list with a name, description, unit cost, and unit type, so a few thousand line items is a lot of scrolling. We can totally see why categorizing items would be easier and faster.
The good news: Categories for the Price Book is something the product team is actively exploring right now. I can't make any promises, but this one's firmly on the radar.
In the meantime, here's the workaround our contractors are using to make a big Price Book workable:
Prefix your item names with a category code. Something like BATH - Vanity 36" or TRIM - Baseboard 3-1/4". Because the Price Book sorts and searches on item name, prefixing effectively clusters everything by category — type "TRIM" and you've filtered to trim. Use a consistent separator so it stays clean.
Build it in a spreadsheet, then import. Price Book takes a CSV import with Item name, Description, and Unit cost. This way, you can keep your master list in Excel or Sheets.
Use the Description field as a second search hook. Drop extra keywords in there (room, trade, vendor) and they're searchable too.
Not as good as the real thing, I know, but your feedback is getting in front of the right people. Keep the ideas coming!