There's a crazy balancing act to this one that I've never mastered. What I've heard is that you set and hold the price you need to be paid for your item... and only if it's at least base-line competitive with other people using the same tags. The trouble is that there's always someone "clearing out" and someone else who just makes for fun and doesn't need to be competitive so they just price low to sell.
What I'd recommend is to do what I had to do. Go out and actually search your labels and tags, see what's coming up. Take the time to really look at their products, descriptions and details as well as their prices. Pick a couple of favorites that are on the high and low ends and write those down. Also look at the OTHER tags and labels they're using, particularly if they're a lot higher or lower priced than yours. Then go out again and search just for the product you're offering. Look at those products, descriptions and details as well as their prices. Pick a couple of favorites that are on the high and low ends and write those down. And again, also look at the other tags and labels they're using for the same reasons. I use all of this to sort of form an image in my mind of who I'm really competing with, what our compared value is and I go into the high end on that. And change a lot of my tags and labels based on who I would rather be competing with than not.
Because I make little amigurumi and handmade items I find a lot of the time that I'm only using a couple of the most regularly used tags, a few of mine are almost too unique and that when I get into the "mainstream" my prices are also more reasonable. A lot of people make little stuffed animals, and often you can see where your quality meets or doesn't meet the competition. Be honest and price fairly for your work.
I hope this even helped a little. Like I said, I've been told my stuff doesn't sell because I'm in the "lower quality" price range and photo quality and actually selling higher quality and that creates a disconnect and keeps me from selling. LMAO I paid for that bit of wisdom. Without also paying for professional photos, sadly that's all it was... just a bit of wisdom.
