I am sure a lot of us have run across this when selling our home made items. I would have to say, we in general are the ones to blame. I think we tend to undervalue our own work, which then teaches others to undervalue our work.
I set the prices on my quilts and other hand items rather high. Based on a $20/hr labor price, and retail on materials. I do not get a lot of orders but I always explain how long and how much skill is involved.
I personally think once we as crafters start valuing our own work and teaching others the value in our work, then we will see the prices go up and less people expecting cheap costs for homemade. I guarantee you Louis Vuitton values his work enough to slap those outrageous prices on them
our work is no less than his,