[color=darkblue]My experience has been: People, who don't do any sort of hand craft themself, have absolutely no idea of the time and talent it takes, to say nothing of the costs of the materials, to create something.
I've been approached numerous times, and when they hear my infant size sweater, bonnet and booties start at $70, they usually shop elsewhere. Those who truely value hand work, pay it.
I'd guess a bag like that would run about $100 in an upscale boutique.
You not only have time and yarn in the knitting, but in the felting process and the water, etc.
I'd rather knit a gift for someone who will truely appreciate having it, than put myself under pressure to get paid for something. You'd be surprised how "picky" people get when ther laying out[/color] [color=green]$$$[/color] [color=darkblue]for something. [/color]