Handknitted garments are something very special, but they are certainly not cheap. People who don't knit themselves often don't realise why such items cost as much as they cost, but what is worse is when knitters underprice their work. Quite often they just don't know what to charge, how to calculate a fair price, and don't take into account the amount of time it takes to knit something.
I recently came across this video which explains exactly how to price handknitting. After watching it, I no longer feel bad about quoting a friend £100 for a pair of socks!