What Price For Handmade?

This is such a tricky question to answer for many makers, myself included. How do you fairly price your labours to reflect what they cost you to make - materials and time? One of the fundamental problems encountered is that unless your items are purchased by someone who also makes, then a good majority of your customers may have absolutely no idea what goes in to something that is 'hand made', Here is a rough break down of what one of my 'hand made' items entails. For this example I am going to use yarn I have hand dyed. 1) Preparation of yarn for dyeing - this includes winding, skeining and soaking the yarn. 2) Dyeing - including rinsing, washing and drying. 3) Choosing colours - getting the colour choices right often requires me to swatch the colours together to make sure that they work. 4) Choosing a design, then swatching again and finally making a chart to use. 5) Knitting the mittens/hand warmers. Every single stitch in the picture below is knit by hand...