I do woodworking and I just use my hourly rate plus materials. There are a surprising number of people who will pay high prices for quality hand-made goods. What I've found works is to create the best product you can and have a story around it.

For example, for my shaker trays I describe the process of picking out the wood, cutting the bands, boiling the wood, bending it around a hand made form, hammering in copper tacks over an anvil, hand finishing, and then applying multiple coats of hand made shellac. For larger furniture or slab work the story of the actual tree can really add to the value as well. People want a story.

To lower the cost you can create router templates, jigs, or even CNC projects to lower the hours spent and reduce the overall cost, but these need to be balanced with the selling of bespoke goods.