Food for thought:
1. As opposed to competing with another nearby vendor on price, it might be more profitable to compete with quality or service, than cut margins and/or risk a price war.
2. Selling inexpensive [product] means high volume, which likely means high workload in manufacturing, selling and after-sales. You should always put value on your own time, and many small businesses underestimate the value of their time - especially since you have two jobs. Alain Briot in his latest book about marketing fine art photography goes to great lengths to explain why high volume doesn't make sense for individuals selling photography products, and I fully agree with him. There might be niches where it becomes profitable, though.
Thanks feppe and louoates,
Have taken your advice and put my prices closer to what I feel is appropriate (but still a mile short of my compatriot, Peter Lik, who incidentally has his last remaining Australian gallery close-ish) and it hasn't reduced my print sales, just increased my revenue.
Bill T, I'm also investigating displaying my work at community centers and corporate meeting venues. On what basis do you have your work in that type of establishment? Lease the space, offer a percentage of the sales etc?
Thanks again to everyone for your input.