Hold to your guns! Don't give your work away. Especially to someone who isn't even family. I would rather use my time and give it away then to sell it for cost of materials and doesn't even want to pay for the cost of materials. I think your price is really low when you look at what quilts sell for on the internet. You don't just include cost of materials and your time, how about the cost of your machine, etc. that you are using to make the quilt.