Coming in late to the thread, it's interesting to hear the different views, and they all make sense. I was only a little curious about the topic, and now y'all have got me thinking really hard on the "best way" to price something with so much creative time put in it...
For my paid work (not quilting!), I have an hourly rate based on the market and recover cost of materials, which is right in line with what you've all been saying. But Virginia's "take it or leave it" is key to getting what I ask for. I used to hem and haw about prices, and it was like my doubts made the customer doubt! I've learned not to waffle, or over-explain, or apologize for the price...now folks pay and don't even blink.
So maybe part of pricing quilts is setting a price that we're comfortable with and confident about. But IMHO, if what we're asking for is far less than what they're getting in quilt shops, we may just need to learn to be comfortable and confident with the price we set!!
Just my 2c
Crystal