I had the same issues when I first started selling tobacco pouches locally and market days etc.
In the beginning I was charging $AU20 and everything sold, that was great, except I wasnt making any money.
The first thing I did was have a look at the local market for similar products, guess what? I was the only one making them, sure you can buy some for $AU15-18 at the local tobacconist but they were either cheap compound leather from India or linen things from Nepal.
Having looked at what was available online (mostly cheap looking or overly complex and bulky) I decided to charge $AU5 more than the cost of a 50g pouch of tobacco.
The plain pouches (standard tan/black/brown) now go well at $AU40 each (very simple, 3 bits of leather with a roo skin thong to wrap around to hold closed).
Anything else is between $AU5-15 extra PER embellishment (fancy colour $5, initials at $5/letter, braded thong closure $15, different stitching $10 etc)
The local market seems to be quite happy to pay for it and at 30-45 mins per pouch I'm covering my costs, fuel and a nice dinner once a week.
I suppose what I'm trying to convey is "know your market and competition".
Initials were added as an after thought by the buyer (not impressed...)