Another thing to remember is that, given the same item, you're better off selling one for $100 than you are selling three for $30 each. I used to do a lot of work for LARPers and faire-types, and I used to work cheap, and sometimes I had enough work that I was feeling stressed a bit (I have a full-time day job), and was tearing through materials, and had little to show for it. I had no time to make anything for myself, and it wasn't fun anymore. For a couple years, I pretty much stopped making anything for anyone, except for a couple close friends who came over and brought beer.
Skip forward to a few years ago, and I decided I was willing to start doing some leatherwork for people again - but this time I about tripled my prices. A belt I would have charged someone $15 or $20 for before I now charge $50 or $60 for. A belt pouch I used to get $20 for now I get $50. And the orders are still rolling in regularly, but the volume is less and my profit is more.