I good idea IMO  

 .  
But when I suggested it to some of my customers they got very squeamish about knowing 'their' lamb.  They seem happy to visit the lambs in Spring, watch them in a flock all Summer, then allow the anonymity to kick in and buy their meat in November.  
Re prices.  I think you have to know what your market will stand.  There is so much excellent local meat available in this area that I cannot get the price  I would like (or feel it deserves).  So I settle for about £7 a kg when sold as a half lamb.  
It is the same with the sheep skins - I cannot compete with the company that sends all their skins to Poland for processing and then sells at the local show 

 .  If I just looked at the economics of it, I would certainly give up.