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No I think you aren't using enough peppers. The amount I use for sauce depends on what's ripe at the time but a rough average ratio would be 300 (hab sized) peppers to produce 1 gallon of sauce, or half that if there's going to be other fruits or vegetables in it too, anything that doesn't cook down as much as garlic or onions, etc.
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... if it's too strong you can always thin it later. Reading your post again it seems like you're buying the habs instead of growing. The luxury of growing them yourself is you then have access to hundreds without the expense of buying them. Just make sure you have enough plants that you have enough ripe at the same time to make a decent sized batch because it's a PITA to keep making small batches of sauce. Powders I don't get into much for sauces because they just don't taste the same to me as using the fresh, roasted pods.