I have had similar experiences. I have made T-shirt quilts for some of the students from my children's high school. I have charged between $150 - $250 depending upon the size of the quilt. I have had several people decide not to do it when I tell them the cost. Most recently I explained to someone who asked that for a Twin size quilt it would take 6-7 yards of fabric for the back at $10/yard. Then there was the cost of batting, and thread for another $30 dollars. There would be additional fabric needed if borders or sashing was added. In addition I would need something for my time - designing/piecing/quilting. She said she would gather the shirts - but I am not holding my breath.