The vast majority of people making handcrafted do not charge enough for their items. If they did, nobody could afford them. Most items are priced based on the cost of the material with little consideration to the time to make them. I have a friend that is a very skilled knitter, but for large items like blankets and sweaters, there are weeks of effort involved. When broken down, "kids in Chinese factories" make more per hour.
The great thing is that this type of person will tell you they are not in it for the money. As long as they can "buy more string" with the proceeds (or whatever their materials are), they are quite happy.
I don't think this is the answer you think it is. Every person that I know that knits or crochets is not doing it to make money, or even when selling items are not charging because they think that's all someone will pay. They do it because they like doing it. If they were doing it to make money, then the fun and relaxing nature of it is lost. If you've ever been to or around a stich-n-bitch, you'd understand. It's cheaper than a therapist. Plus, there's usually wine and baked goods. I'm in Texas, so it's not like the items knitted are used for more than 2 weeks out of the year. That doesn't stop them. To blame it on the "what people will pay" is grossly not understanding.
My friend made a rule that no new yarn could be bought until the same amount of yarn from existing inventory is used first. An entire closet was dedicated to said inventory. Receiving yarn as a gift does not count.
The great thing is that this type of person will tell you they are not in it for the money. As long as they can "buy more string" with the proceeds (or whatever their materials are), they are quite happy.