Pricing is an interesting thing. Prices for similar items or work are always all over the board. For the most part it depends on reputation, brand appeal, and quality. Years ago I moved into a town of about 10,000. I had worked most my life in contracting, and looked for work and jobs. No luck, it was a tight knit small town secluded from the outside world and people didn't want an outsider doing work.
Up to that point while I lived in Alaska, I had gained a reputation for custom trim work and anything that took a detailed oriented person to do. Custom built in cabinets, trim, tile, panic rooms, whatever. Basically I got a lot of custom work that general contractors did not do as well as I did.
After moving out of Alaska, for a short period of time, I got work as a carpenter for a ridiculously low hourly rate for my skill set, but I put in the time to start getting my name out. Then I took a side job for one of the doctors in town who had bad luck with the local contractors. I bid the job nearly 3 times higher then what locals were charging with the idea that in the past my higher prices made people feel like they are getting "better" craftsmanship. He gave me the work and was very happy with what I did for him. With their high profile friends, I began to get tons of work from lawyers, doctors, engineers, CEO's bank owners, etc, all paying 3-4 times the local rate. They knew I wasn't cheap, but that I was timely, did top notch work, and was polite and respectful. I became the "prestigious" craftsman to use that people would brag about when showing off my work in their houses. This lead to a really good situation where I could pick and choose jobs, and make more money working half as many hours as the local guys were.
So all that to go back to pricing for products. Many times the same product priced higher will sell better, because there is a perception that the higher priced item is better. Sometimes it can be hard to remember this though because we think if we price it lower it will make people will buy it. However the psychology of most people tells them that less expensive is "cheap quality" and more expensive is higher quality. There is also a feeling that if you paid more for a product that there is "brand" appeal, or prestige to owning it. So they are more willing to buy it because they will be proud to own it. That last point is a big selling point.
I am getting my blacksmith shop setup again. I am running my machine shop, but have wanted to start blacksmithing again. I used to make a decent side income blacksmithing many years ago. I undersold myself at that point, and do not plan on doing that this time around. I would rather sell one high priced item per week then a ton of the same lower priced items a week. Beside in this day and age with the internet you only have to cater to a faction of a percent of the population that has the money they are willing to spend. If someone does not want to pay the high price for handmade goods, then they can buy from someone else.
If you start by selling low, you risk always being seen as the "cheap" brand, vs just starting out selling higher and build the brand appeal, and be seen as a high quality producer. Think Kia, it took them a long time to shed the cheap Korean tiny wheel car reputation and be taken seriously.
Anyways that was a really long rant.