I’ve just started my etsy business and am approaching it as such. I wrote a business plan, took classes in management, etc. The advice we were given in class for setting prices was to determine how much we would like to make a year and that the market would bearthen figure that only 50% of our time could actually be attached to a specific item or service (the rest is marketing, buying supplies, meeting with accountants, etc.). So if you want to make $10 an hour, you need to “charge” $20 an hour on the production time of an item. It seemed outrageous to me at 1st, but now I realize it makes sense. I can easily spend as much time, if not longer, photographing, listing, blogging about, and otherwise promoting a purse as I did to make it.