I am here to spill the tea. What I have learned in my first year about setting prices, and being comfortable in them. I'm sure most small businesses have had that wildly awkward conversation about product cost. How to justify to yourself, that the prices you set, that paying yourself is reasonable.
Last year I started a small business and I learned a lot about how to set my prices. The equation I had started with was cost + time x 1.75.
Lets talk about cost, cost will alter slightly depending on what platform your products are being sold on. Cost should not only include the materials used, but the cost of packaging to ship. This is why some small businesses offer 'market special.'
When plugging time into my equation, I routinely time myself. When my task takes less time I drop the price. During this be kind to yourself, if you are starting up an art business that takes an incredible amount of time to complete, having prints available allows for a lower priced item and helps absorb some of the time it takes for the original.
Why, times your cost + time by 1.75? This allows for small businesses to pay for all overhead costs associated with being a small business owner. Some fees include booth costs which range from $20 - $3000, business cards, website costs, travel, apps, props, photos exc.
The other thing to consider when setting a price list is deciding whether or not you are wanting, in the future to offer that product for wholesale. The expected wholesale prices are 50% of what you are selling them at. So would the prices you set allow you to enter a wholesale partnership. Wholesale relationships can be so beneficial for a small business. It gives reach in marketing, in customers, and in business relation.
Be gentle on yourself, you are worth the cost set.