Fairly traded crafts and products generally do not cost more than conventionally traded goods. This is because there are only one to two intermediaries between the end-customer and the producer/farmer as against the commercial trade systems which are formed by long intermediary chains. In the Fair Trade product life cycle, many middlemen are cut, since wholesalers and even some retailers work directly with the producers. This enables the cost of the product to stay the same, while re-distributing the amount of money that goes to the producer.
In the end, Fair Trade is not about setting mindless or irresponsible price floors. A fair price for goods is calculated based on the effort and raw materials put into making a product or growing produce, and based on other factors such as the estimated living wage in different regions of the world. Nevertheless, you shouldn’t expect to pay much more for Fair Trade products. (But every conscious buyer should be sure before buying a low-priced product that it has not been a result of comprises on artisan fair wages or quality standards).