Yes, I think that's one of the problems that we all face. I've done various crafts over the years, and it's something that you hear time and time again, especially at craft fairs. People expect you to sell the items for the cost of the materials, and that's it. They don't see why they should pay for your time if it's a hobby. That's why I'm quite clear that I do this as a business - and price my pens accordingly. Penmaking isn't my hobby, if I didn't make money selling pens I probably wouldn't be doing it. Fortunately most of my customers are great and don't have a problem paying for my time (a lot of them are professional calligraphers and so face the same issues themselves).
I think that's one of the problems with pricing your stuff low; by doing that you're basically telling the customer that it's a hobby and you're not really looking to be fully reimbursed for your time. That sets the expectation in their minds that your item may not be professionally made (you're just a hobbyist after all), and why should they pay for your time at all?
I know it's not right, but it's the way it is, I'm afraid. 
