Reference photos and pricing

Not posted for a while so thought I had better put fingers to keys. Have been a bit under the weather for the past few weeks so have not got a lot done. Did manage to get out and take a few reference photos and have just started work on a horse picture.
On the forums there tends to be a lot of posts about pricing. This is always the hardest part when you come to sell your art. You need to find a balance between what people will pay and what you will work for. New artists tend to under price by a vast amount, for example a recent one I saw an artist asked if £20 was too much for a work they had spent over 15 hours on, taking into account materials they would be working for about £1 an hour. Then you get the ones that only want to make back the cost of materials because its just an hobby. Now I don`t mind if people want to work for £1 an hour but it does have a knock on effect in that it de-values all art. I try to price my work as fairly as possible taking into account the time it takes me to do a piece and the cost of materials. My commission work prices are based on that as for my other work if it is in a gallery they take up to 50% commission so my prices have to take that into account as they would be upset if a customer said `I can get that at half the price on the net`. So I hope this helps people understand a bit more about pricing.