When valuing your work you need to take into account not just the time it took you to make it but the skills you have amassed over the years and the effort and study which enabled you to come up with this design - even if you are entirely self taught! Think about all the hours you have put in before you make the mistake of many crafters and hugely undervalue your work!
It's not just about how much the materials and time cost!
There's a brilliant story about Picasso, not sure if it is true or a myth but it is a great (if not a little extreme) example of not undervaluing your work -
A woman spots Picasso on a walk in the park and asks him to sketch her.
He agrees and creates a beautiful image with just a few pencil strokes, capturing the essence of the woman.
She is so thrilled she asks if she can buy it,
"Certainly" says Picasso
"You can have it for $5,000"
The woman is shocked - "But it only took you 5 minutes to draw?"
Picasso replied "Madame, it took me my entire life."
In reality I know it is hard to do this because of course you want to actually sell. Just don't sell so cheap that you not only undervalue the product but also your reputation as a quality designer maker. Cheap prices can often make people think products are created quickly and cheaply without much care.
How can you possibly compete with mass produced products made in China? Don't even try - instead celebrate the quality and care in every stitch or cut. Show people the process and let them see the story of your design process and works in progress. Help people to understand that they are paying for something very special. This way your products will become desirable and valued, people will excitedly tell their friends about their purchase!
You can add this extra value and insight into your crafts business by blogging and sharing pictures on social networks - look at all the links to the right for some tips! Learn how to take amazing pictures of your products and how to use a tripod and set a self timer to snap yourself in action. Let people get to know you and find out about your background and interests and all the work that it took to get to a point where you are selling your products.
Also remember, the highstreet is NOT your direct competitor - other artists and designers making similar products are. So think really hard about what makes your work unique and desirable - what little extra details (or less fuss?) makes your design better than the rest?