This will frighten you - It costs me, based on my annual accounts for the last two years £5 to make and sell a pen, then.... plus the kit, the wood, and the profit. The £5 includes all the costs including running back and forth to suppliers, postage, bank charges, additional power for the machines, etc etc etc. It being your hobby doesnt mean its a pleasure to lose money, nor, inversely, does it mean that you should be prepared to do it for anything less. Nor does it mean that it is lesser quality because it is your hobby. No business is better than bad business!
Recipe for disaster, and how not to negotiate... I would normally charge so and so for this pen. This means.. I am open to haggling and will compromise my profit because I am desperate to secure your order.
Talking discounts when their is no advertised "retail" price puts the seller at a disadvantage because the levels haggled over are frankly arbitrary. Oh, I'll give you 15%. Why, whats the mathematically logic behind that? Volume discounts are supposed to reflect a saving for both the manufacturer and the buyer due to mass manufacturing and the saving of overheads, but there are none, so you are passing your money to them with no benefit. When asked how much, you should reply along the lines of,
Bearing in mind, Sir, that you need 100 of these, they will be coated in a gold plating with a fine layer of wear resistant epoxy coating which means that your purchase lasts many years, it will be finished in a durable coating to match the longevity of the metal work and is supplied with a high quality Swiss made refill which means that it will provide a smooth writing experience and will last a long time. This pen will cost you £14 each, supplied in batches of 20, based on a quantity of 100.
If he doesnt want to pay £14 or whatever the price is, he will find it difficult to haggle with the price, after all, which part of your sales spiel is he prepared to compromise if he doesnt want to pay full price?
Next point in haggling. Never ever pitch your price first. Never, never ever ever. Never!!!!! He can then only pull you down. He pitches first and you can then pull him up, and the degree of your skill will determine the amount of profit you secure.
Have fun!
