The first piece you make always takes longer. Essentially, it is a prototype. If, for whatever reason, you decide to make more of the same, or variations on the original design, the time invloved decreases considerably.
If you are going to make something to sell, then the first few can certainly be given away, or "test marketed" at a very reasonable price. After that, you can determine the actual cost of materials, labor, etc., to help determine a price.
Good craftsmen often devalue their own time. How much does a plumber or mechanic charge per hour? In my opinion, $20-25.00 per hour undervalues skilled work. You will never be able to price compete with Wal Mart, even if you charge $1.00/hour. That is not the market you're looking for anyway. You're looking for the buyer who values something unique that was produced by an individual craftsman.
Take a look what a glass blower charges for a unique hand-blown ornament. You might be shocked. A skilled artisan can most likely make one of these in a few minutes. The buyer is paying for the unique design, the skill required to create it, as well as the time involved.
I guess my point is, don't sell yourself short.
Matt