You probably just need to use a VLOOKUP formula here.
Suppose item name is in column A and price in column B of sheet 2. Select columns A and B and hit Insert-Name-Define. Call it MyData (or something).
In sheet 1, you type the item name into C3. In D3, you type:
=vlookup(c3,mydata,2,1)
where: c3 is the item name (part number, etc.)
where: mydata is your *database*
where: 2 is the number of the column (in the *database*) that contains the value you want to return
where: 1 means don't find the nearest value, only the exact value
To create the dropdown on sheet 1, select only the product names on sheet 2, hit Insert-Name-Define and call it something like Products. Then click on cell C3 (continuing with my example above), hit Data-Validation, choose List from the dropdown. In the Source box, type =Products
You can use the Insert-Name-Define to name the range for your index formula as well, but vlookup should be much easier if you can use it.
Exact match requires 0 (that's, FALSE). [NT]