Before I started quilting, I bought a quilt at Sears for $50. I lasted about 10 years and ended up in the dog's bed. Started falling apart - in fact, the fabric started disenagrating (spelling?) like it was dry-rot.
Then I discovered quilting and the rest is history.
What I've experienced is how people ask me to make a quilt and when I quote a $500+ price, they look at me like I'm crazy. I let them know the fabric alone will run around $300+. That's usually as far as I get with them....which is just fine with me.
I've sold a few memory quilts for around $100 but the customer usually supplies the t-shirts, clothing, etc. for me to work with.