When you begin selling your wares, suddenly you are going to be mobbed with experts.
These experts will often include your mom, your gramma, her dog, and people who have never been behind a sales counter in their lives.
Your work according to them is possibly priceless. Possibly worthless. Please consider the basis for their "expertise" before you take too much of this well-intentioned advice to heart.
The next thing a lot of people will do is to run to the research stacks. You're going to see a lot of math forumlas. You're probably coming into sales with your own mathematical sense of what you want, right?
Noob crafter: If I double my costs, that's awesome.
Hold the phone, grasshopper. If you double your costs, you have simply permitted yourself to go out, buy supplies and do the same exact thing over again, like a little crafter hammie on a wheel. If having fun and keeping busy is your only goal, rock on with your bad self. Consider upping the ante a little so you don't have to pay for shipping, cute packaging, and office supplies out of pocket, yes?
Non Noob crafter: if I triple my costs, that's not too sad.
Better. You're moving ahead a little, you can sell two of your thingies now, thus you are achieving "growth." Growth is really good, this is a reasonable kind of spot to hang out in for about 2-3 years in business. You're not really getting far ahead, but hopefully you are building brand awareness, feeding yourself, and having some fun.
pwnzored!!! : what is the maximum profit I can wring out of my crafted thingie?
There we go. Profit is not a four-letter word. Try saying it in front of the mirror every morning to turn yourself on. It's a cheap thrill, but I'm cheap like that. Here's where that art part comes in.
Drop the books, go out, and look at some real-world shopping demographics. There are myriad ways to apply art to this problem of making $.
You may choose to consider the world of people who are less broke-ass than most of us are. As in way less broke-ass.
100 dollars = 20 dollars to certain demographics. And they're still buying things. Recession, no recession, end of the world - no matter. Srsly. DOES NOT MATTER. Price is not a concern, everything is in the story of the item. I used to sell to this demographic. I quit my job a day after selling a 900 dollar ribbed tank top. There are just some things I can't handle.
You may choose to go the democratic Scandinavian route, which is very much my personal strategy. Making streamlined things that are easy to make, easy to repeat, massively appealing, and cost-effective for most humans, while still retaining everything lovely and fun about good design and the little fingerprints of hand making.
You may approach this from a retail sense. Walk around and think to self, " self what is the most I would expect to pay for like thingie in small chic boutique in my town?"
If you ever want to put product in stores, if you ever want to wholesale, it is really important to make the transition from 3x your costs to this other kind of thinking - it is a struggle to balance being in stores and getting that help selling and that precious brand dissemination with making the effort worthwhile - All the while not losing your own fantastic customer base to the pricing you need to do.
The bottom line is that math formulae alone will not help you find "right pricing." $39.99 works fine at Jc Penney, but looks cheaptastic at a gallery.
March to your own drummer, but don't rip yourself off.