I'm also pretty good at taking a little and making it appear to be a lot . . . though I'm not sure that ultimately this isn't part of the problem.
Look at it this way -- but don't take it personally because lots of us, myself included, have done the same thing: At Christmas you make a big basket of pretzels, which has the "perceived value" of $50. Your friend gives you a small ornament (which appears to be a much less expensive gift, but in reality probably cost about the same amount as your basket) -- and, being human, she notices the difference and feels bad. So next year she makes sure to "do it big" with your gift, and she buys you something really nice. And you're in a bind too (unless you give the same pretzel basket year after year) because now you need another low-cost/high-impact gift, and that probably takes effort, if not money. So increasing the "perception" sort of raises the bar for future gift giving.
Giving should be fun and from the heart, but that doesn't always happen. There is no good answer.