The pricing of handmade items has also been a problem for me. Most people think my items are priced too low which takes away from the quality of the item. What I consider more than anything else is the cost of the material used. I really do not consider my time, not that my time isn’t valuable, but I do most of my work when I would just be sitting and watching TV, so it keeps me occupied, because most of the time on TV it does not require your full attention. So if when you look at my items you think they may be lacking in quality because of the price, that is not the reason. Some of the items that are extremely low in price are because they are made from yarn or thread or material that was left over from a different project which has already been sold. Right now I have a lot of items that I am just using up small amounts of yarn rather than just throwing the yarn away, so the items are low priced. Examples of that are the pot holder handle covers, and the Sun Bonnet Sue magnets.
If a pattern requires a lot of work such as attaching some appliques (as in the swan and lady doilies)
http://www.etsy.com/view_listing.php?listing_id=27047690 or
http://www.etsy.com/view_listing.php?listing_id=26338912 then I do charge a little bit more. Some of my sewing items are made from material that was on sale at extremely low prices.
Visit my Etsy shop
http://www.etsy.com/shop.php?user_id=6084057 and take a look at the variety of items and different types of crafts I do. After raising three children I had to develop several different skills to accommodate the clothing requirements of 2 girls (very fussy) and 1 boy.
I am new to blogging so I am not sure how it is done, but if you have ideas on setting prices let me know, I would appreciate the input.