Buyers are irrational but they always look for better price. The understanding of "better price" can be also different. For some people it's cheap and for some it's expensive and everyone has his own justification for that.
If we take handmade as an example for price set up, we can face a number of difficulties. Pricing a handmade thing is nor an easy exercise of adding margin % on top. Normally the calculation of handmade thing is done the following way:
average hourly rate (take the one where you live) x time consumed to make the handmade thing + material cost = cost price of the goods made
you are welcome to add margin % on the top for the final price.
Sometimes I do add margin and sometimes I don't. Handmade things are not cheap. And the reasons for that are listed in one of the blogs I have come across one day. Fair enough!
If we go for pricing other items to sell in terms of reselling business, here we go with all possible variants. The most important is to play fair and wise with the price set up so it will match features that product brings and economic reality around.
Some interesting things about pricing: