This is just my opinion from over 4 yrs of doing shows...
People have a somewhat strange perception of what art costs... the have been lead to believe that inexpensive items are not art and expensive ones are..
To give you an interesting example... amongst woodturners there is a saying "If it won't hold soup it is art".. this means that some of the bowls and items we turn that end up having voids and holes because of bark inclusions or other "artistic mistakes", in other words something we would not use at our kitchen table even though it started out for it, now becomes artwork and demands a higher price.
I have turned some pens that needed "redesign" due to faults in either the wood or my technique. The redesign might be the addition of a different wood to fill a void or maybe some stone powder and epoxy. These pens were "MISTAKES".. they were not supposed to look that way... buy low and behold.. I got higher prices for them than the same pen in the same wood that come out "PERFECT".
My custom portraits start at $50 and go up from there. Some of it depends on the complexity of the pattern that I need to design and therefore the amount of time needed to cut it. Last year I did a custom piece of someone's drag racer.. nasty pattern to work on... final cost $150 in 11x14 with a WalMart frame... he was overjoyed with it..
Do not undersell yourself... but also remember the final pricing also depends on the local that you are selling your items. I live in Western MD.. this is farm country.. not a lot of rich farmers.. but it is also a commuting community for Baltimore and DC. I have my pens and other turnings at our local farm market during the months of Nov-Jan... the market is only open on Saturdays from 6AM-Noon in Nov and Jan and 6AM-2PM in Dec. So far with only 2 weekend under my belt I have sold $300 in pens and other turned items.
Basically look at your market, if you think the economy can handle the price, go for it.. if you are in a depressed area, you might need to rethink your pricing...
But in the long run, I have found that people will pay for quality.
Tom