All are good answers so far. I'm assuming that John wants to build and sell guitars, and maybe some day be up there with the big boys. Name recognition is a huge factor. Even at the point of matching an established makers work, untill you have name recognition you wont get as much money for the same quality.
Here is the flip side. I am a begaining hobby builder. I just finished my first guitar, and I bought the neck for it. Its PRS shaped with a nice quilt top. Everthing fell into place and it turned out nice. I got about $475 total in it (makes me wince when you see some of the $500 guitars I could have bought). But hey, I had fun doing it and love my new guitar. Now lets say some one is at my house and falls in love with my new baby. Am I going to sell it for $500 and make $25 just so I can claim to have sold some of my work? Dont think so. I didn't make it to sell, and I'm plenty happy to keep it. Right now it would take $2000 to get it out of my hands! Is it worth that much? Of course not. But right now I'm getting more pleasure out of owning it then I would a store bought $2000 rig! Why? Because I made it with my own hands, and it turned out nice, and it makes me feal good when I look at it. On the other hand, a year from now, when I get another one built, I could see me giving this one away to a friend or family.
If you're building guitars to sell maybe there is a math formula for pricing. If you are building from inspiration and some one ends up wanting to buy the finished project, don't give it away, you'll regret it later. I wish I could buy back some of the knives I've made and sold. While its true that I can always make another one, the copy of the first one (which was made from inspiration) never seems quite the same. I have learned this the hard way. Later, Dave