Pricing does affect on whether or not I buy it. But, again, it depends on what is included and (like the other posters) whether or not it says "wow!" to me.
What can I use this for? Can I use it for more than one piece of art? Is it needed for the type of art I do? What additionals are available for this item? Can I morph what I already have and come up with something similiar? Can I create this myself?
Once I come up with all the questions, I then take a look at the price. If it's above $20, I place it in my wishlist and wait for a sale. Under $12, I'll snag it. The inbetween pricing, I do nothing (unless it's a sale item), just keep browsing. Odd practice, but how else can I budget myself?

What should you do, in my opinion? If you see it necessary to up your pricing, do it. When I come across your item and it looks yummy to have, more than likely, it's going in my wishlist and not my cart. I'm worst than a woman... if that high-priced tag for those new pair of pumps isn't reduced more than 30%, I won't snag it. But... having that higher price comparitable to the sale item makes it look like a steal, unlike having it already priced at the low-end. Weird marketing idea, but it works. If you raise your already priced $8 item to $20, and two months down the road have it on sale for $10, what have you lost? Nothing. In reality, you still made a $2 profit because it was initially set at $8, but I would buy it at $10 simply because it is half off the upped price.
Marketing... gotta love it.