Debbie
I have been following only some of this thread and so can only tell you what I do.
If family ask (and they usually don't any more) I offer to put them on the "one day" list, no specific timeframe. If they insist they will "pay" me to make one now I smile and say that as they are family I will only charge them cost and $5 per hour - materials $450, thread $50, batting $50, labour 150hours at $5 = $750. ($1300AUS is about 750EURO or $1000US - give or take - and those amounts are VERY conservative for a QS quilt) At this point they usually scream that they can buy one cheaper and I suggest (very very politely) that they go out and do so.
If "strangers" ask I simply reply that I do not make quilts commercially/professionally.
I am NOT a professional quilter because I used to get so angry that the time and energy, creative skills and material costs of the things I made were constantly and grossly undervalued by those who fancied owning a handcrafted textile item. It is the same with most activities that are broadly categorised as "crafts". Just consider local markets where skilled artisans are expected to sell for the same rates as unskilled hobbyists.
If I get cornered into making a quilt for payment I give an estimate in hours of how long it will take - AFTER I have taken the person asking to a quilt shop to buy all the material for the quilt and they have seen the material cost. That is usually enough to make them rethink the request.
I will teach people to quilt anytime, and I warn all my new students that quilting is both addictive and expensive (time and dollars). But I do not charge as a professional teacher anymore - just a token amount to cover coffee, snacks, magazine subs, tools, etc. I live in a small town that would not support the sort of rates I was paid when teaching in a major city in a shop, and I now do this for the joy of teaching.
I will assist people with links to quilts for sale (and smile inwardly at their shock over the prices).
And I will give my quilts away. But once given, I take no issue with what they do with the item. If I see a gift quilt being abused or unappreciated I simply make note never to gift that person with another item that has taken me time and effort to make.
I have been known to "trade" (or perhaps more accurately "gift") a quilt from time to time. If someone takes the time and effort to do something for me as a kindness I will spare no effort to make them a quilt that I think they will like as a gift. Jessamy mentioned garden revamp and quilt as a possibility for her (which is closer to a "trade"), but I also made a quilt for the man who built my house for me as an expression of thanks for the extra effort he put in to help me. He recently brought the quilt back to me for minor repairs and I am sure that his beloved corgi has been sleeping on one corner of it. I had no problem with that. It showed that he was constantly using it, as Corgi is never far from B's side. I am absolutely certain that he has no idea what the quilt cost (just in dollars, forget effort) and I will never mention it. He thinks my quilting is a "nice little hobby" and I would not embarrass him by reducing his quilt to a dollar value. He likes his quilt because it is his favourite colours and because I made it. That's enough for me.
And if MIL continues to be a pain on this subject just tell her very sweetly that you are sure that nothing lil' ol' you made could possibly be good enough for a special person like her!