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Your prices are good-if you charge any less,you will just be considered an "average" camera owner.
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Depends.... First off, how long have you been in business? That is the main point right there. If you've only been doing this for a little while then yes, you probably are charging too much.
People will not pay top dollar for a name they don't know... especially in photography. You can never go by what everyone else is doing / charging. Those others could have years on you and again, people will pay for work by people that have the reputation.
Bottom line... until you can successfully charge $100+ per image, you should take what you can get. Plus, you do a 'deal' for someone who doesn't know you and that person could turn around and say ' blah blah did great work for me for a great price' = just generates more business in the end for you.
Took me about a year to get to this point ( $100+ per image ). I started charging $45 for image + print and framing costs for my landscape / wildlife photos. Portrait work was $200 single / $350 family+group work. I now get around $250 per image ( print and framing included ) for the landscape / wildlife, and double mentioned for the portrait work.. You have to start at the bottom. Trying to get top dollar right away will only hurt you as word spreads faster than money = people tell people you charge too much.
If you're established and have been successfully doing this for a while, totally disregard everything I've said here.
You should, though, always release top resolution to your clients no matter what. Why would someone pay top dollar to get work done and not be able to display it in their home right? Also, you have to get out of the 'XXX per image for portrait work' ; charge the flat rate + XX per hour for processing. In the end, you have to remember you're trying to establish yourself and you can't do that if you try to charge top dollar right off the bat....
just my 2 cents
P.S. Try a disclaimer on your website / business cards that state you only sell prints, if that's what you want to do. Maybe these folks felt ripped off because they expected ( for your price ) something more than non full resolution images on a CD.
Your bottom line as a photographer is two fold : give people what they want and give them something they are proud to display for others to see. There aren't too many people out there who pay for portrait work only to be given something they can't use in the end ...