It's odd - I found that when I raised my prices, I sold more. But - I had a man try to buy four items for the cost of two. I explained how much time it took me (4 hours), the cost of supplies and that all my work is handmade, not a resell. He obviously was used to negotiating a price and didn't quite get that art is totally different from a service. His wife gave him a dirty look :) I have a pricing formula that works quite well - it takes into account packaging, the cost of the space, travel, etc.