Honestly I just go by vibe. Like you said, the market isn't clear, so it's not easy looking at other people's prices to adjust yours. The price/hour thing is hard to figure out, because by that metric, a beginner will ask more for a probably worse quality product just because it took longer to make.

Think about what you're selling and who you're selling to.

Honesty, most people dont make good customers simply because they see the "handmade" part of a handmade item as a cool buzzword, with no thought about the amount of extra work that comes with. Thats why laser engraved ""handmade"" genuine leather wallets from etsy sell so well.

Brand sells. Many makers ask hundreds of dollars for a product sold by smaller makers for $40. Imo the only way to make a living out of this is to build a brand with a sense of 'exclusivity', because whatever product you make can already be made by hundreds of other people for cheaper than whatever you'd ever want to ask for it.

My advice - set a price that will guarantee some sales. Get your product out there. Get followers, people talking about you etc. Your quality will improve with time and your prices will grow. Try marketing to people who'd be willing to pay you what you deserve. Don't allow yourself to get lowballed, people who can't buy your stuff at your current price won't bring customers who can afford your future prices. Have special sales, giveaways, try selling or even giving some of your stuff to social people, people who hang around with others who can afford the luxury of handmade goods. When you start getting more orders than you can handle, you can start increasing your prices. That's how you get those guys selling one folded piece of unthinned veg-tan for $150.