Pricing is the most difficult issue with handmade items. I make various pieces and I am doing it for a job. Many, many people make jewellery especially, as a hobby and think that their time costs nothing. The same goes for many "handmade" items.
I make sterling silver pieces - the silver needs bought, the hallmarking needs done, the time needs accounted for, I have advertising to pay for etc. etc.
If you are looking to sell individual one off unique pieces then they cost money.
I am not quite sure I would be able to work out the £6 headpiece to £200, but it depends on how long it takes you etc.
There are various books and websites out there which give advice on pricing items, but at the end of the day, I feel it is better to sell items at a reasonable cost than to have a really expensive piece sitting on your shelf for ages, unsold.
I know what my pieces are worth and that is what I sell them for - not to everyones purse but I am not selling mass produced tat!