this subject is a hot button for me.
sure, you can knit a scarf for under $10 --if you don't include your time.
your time (and effort) is part of the productions costs.
Ok, so you are not knitting for profit..
tell your friends
1--i don't knit for profit. i will:
A--make you a scarf as a gift
B--teach you to knit so you can make your own
C--knit you one, but you have to comp a charity the value of the scarf
(and lets face it, a scarf is about 6 to 10 hours of knitting.. (ok that's just a few evenings.. but its still 6 to hours of work)
at MINIMUM (unskilled labor!) wages, that is still $35 to $60 worth of labor.
if the scarf has any skill (and purling is a skill, and ribbing is a skill (hell basic knitting is a skill!) even a $2.79 skein of yarn scarf is worth $75!
If you or your friends want a HAND MADE, one of kind item.. then it is an artisan article of clothing--it's not something they can pick up at Walmart--and it shouldn't be priced to compete with walmart.
they should realize that. YOUR TIME IS VALUABLE. (and if you wish to give it away, fine do so, but don't say oh, i spend $3 on the yarn, 3 times that is the right price ($12!) for something that took you 10 hours to knit.--your time is worth more than $9!--
if you charge "wal mart prices" for Madison Avenue boutique goods, you'll find yourself in a sweat shop of your own making!
The more you "under sell" knitting.. the longer hand knit things will be considered worthless (that is, worth less than the labor it takes to create them!)
the only way to get respect for knitting, it to respect it.
if your friend want a hand knit scarf, let them learn how to knit, or let them pay through the nose!
i stand by my recommendation.. $100 is a reasonable price for a hand knit scarf. (it represents 10 hours of work--plus materials.. and it is a perfectly reasonable amount!)