Michael,
Except for harpsichords and restored pianos, I've never built anything for sale - so take this with a grain of salt. It seems to me that your chair is priced too low. I have no idea how long it takes to make a nice chair like the one in your ad, but unless you can knock it off in two or three hours AND get the wood for free, I don't see how you can make any money.
When I started tuning pianos 45 years ago, I put an ad in the local Pennysaver ( a weekly magazine where people could advertise their services ) and priced my work VERY cheap. Turns out, it was never cheap enough for the readers of that publication. Looking back at those days, I realize now that I priced myself so low because I didn't think I was worth more. I was right! It took several years, and the help of many older technicians, to get my skill level to the point where I felt comfortable charging the going rate. In the meantime, had I continued to run these ads - which I didn't, I could have been labeled as a cheap tuner who did second class work - a reputation that's very difficult to repair.
I think many craftspeople tend to undercharge their work, for many reasons. It's not difficult to find out what the "going rate" is for a chair like yours. Look it up on the internet - make sure the quality of your work is comparable or better than the competition (and I'm sure it is), and charge
accordingly.
Just my 2 cents worth.
Ernie