Family and Friends - How do you price your work?

While checking out a plan for a piece, a friend got quite excited and was ready to make a commission for the creation of the piece.   But then reality got a hold of him.

My first question for viewers is - Do you have your price listing and your Commission Agreement created and ready for review?  Even when using a Friends/Family quote for the size of piece he wanted, it was still to much for him.  Be sure you have your list and agreement ready for review with a possible purchaser, so you can back up what and why your prices are what they are.

My second question for viewers is - Do you stick to your price list because you feel your time and your work is worth the price, or do you give in and given them the price they can deal with?  Even when lowering the hourly costs, it was still too much.  But to go so low that you only get back mostly just materials and little more? How do you handle friends/family requests?