The Iron are looking to strengthen their attacking options after struggling to convert chances, and made an approach for the 24-year-old.
That offer was intended as the start of the negotiating process, but prompted a declaration from the Pirates chairman Nick Higgs that the forward would not be leaving the Memorial Stadium.
"I can confirm that Scunthorpe have made a ridiculously low offer for Will Hoskins. It isn't something we considered because Will is not for sale," he told the Bristol Evening Post.
That resolve is sure to be tested during the January transfer window, with the Iron likely to make another offer and Derby County also believed to be tracking the player.
Hoskins signed for Rovers on a free transfer in the summer after struggling to make an impact in the first-team at Watford. He is their top scorer this season with 11 goals.
Baraclough felt the offer made by the Iron was a reasonable amount to expect from a first offer.
"I don't think it was ridiculously low so he's obviously trying to bulk up the price," he told BBC Radio Humberside.
"All you can do is ask the question. Every player has got their price. He has scored 11 goals this season and has done very well so he's going to court some interest."