It’s a sticky topic…
I once read someone who impresses the value of what they’re giving by giving invoices to their friends/family, and including the discount on it. Even if that discount is 100%, it shows them what the cost price is of what they are getting.
Personally, I find it very difficult to work with family and friends. Sometimes you just have to do it. (Obviously I’ll make anything my parents ask…) But whenever I can, I refer out. I’m upfront about it, I tell them it’s hard to work with friends and for the sake of our relationship I would prefer to help them find the best match for them. I also tell them I’m here to answer any questions they might have, and that they should please ask me for help along the way with opinions and advice.
As for discounted rates, this is a service-based business, which means you are trading your time for money. You can’t just order more time like a storeowner can order more stock, because your family used some of it at cost-price. It’s hard to run a business and actually be profitable on discounted rates. I think we understand that, but not everyone does