Are my prices really fair?

Overall I've had a few people question my prices, but most people realize that I'm asking competitive prices for the products I"m selling.  I usually check on Etsy before making a final price, looking to see what others are selling them at.  The reason I think some are shocked by the amount that I'm charging is because I"m using 'old' items found in the thrift stores.  However, I still have to purchase them along with the necessities to make them into the final product. 

I thought that this might be a good time to let people know why I charge what I do, and what kind of money goes into making the final products.  The amount in green is the starting price for each group of items.

Soakers & Longies:  $5-$10 in materials for each one, plus 1-2 hours of time spent making each.  $14
LambLegs:  $2-$3 in materials, 3-6 made in one hour.  $6
LambKlips (coming in November): $2 in materials, est 3-6 in an hour.  est $5
LamBums:  (testing to begin November):  est $5+ in materials, est 1 an hour.  Est price after testing:  $12-$15

The cost in materials does not account for various business expenses like business cards or brochures, taxes etc.  It does not account for booth fees, website costs, bank fees for transactions etc.  In starting this business, I'm learning a lot about overhead.  Will my prices ever change?  Unfortunately they probably will.  For instance if I start selling on Etsy I have to pay even more fees.  If I start a webpage with a shopping cart, that's going to start at $20 a month, for a bare bones site.  If I start accepting credit cards that's going to add more banking fees.  If I get a cell phone (I don't have one at all at this point) that's another raise in my business costs.  It's not cheap or easy to run a business. 

When I first started shopping for unique handmade items I noticed how expensive it was.  I was very naive and thought "Wow!  What are these people thinking?  I could make that for half that price!!"  And I could.  However most of the time I was looking at hours of learning how, a few hours of making it and enough of the cost in materials to make it much easier to buy it already made for the 'super expensive price'.

This is why I"ve written this post.  I wanted to share a little that I've learned by starting up this business.  People don't just spend money on the materials to make the things you purchase from them.  They purchase special tools in a lot of cases, plus, if they're taking their crafting seriously and turning hobby into business, they have a lot of other costs as well. 

So next time you look at a price tag, go ahead and gasp horribly, on the inside, and give a friendly smile to the vendor!