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I do discounts for family. My prices are low to begin with but I offer a 20 - 25% discount for them, partly because they wouldn't be interested in a painting if they didn't have a family connection with me; i.e. these aren't people off the street or who have simply found me via my website. I would also expect some discount for them, were I to need their services.
It's also partially in deference to their economic situation; most are not the sort of people who drive $40k cars.
Another consideration is that I don't usually have a waiting list, although I have one I'm painting and one pending currently. Were I busier I'd probably reconsider that. But my painting is a second career after retirement so I don't depend on the income, which is an aspect to consider.
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