You are under selling yourself. Friend or not I would not go lower. I was asked the other day if I could beat a $500 bid for a wedding & about passed out. Granted I only have a few under my belt but I will not touch one for under $1200 even in my area. There seems to be a couple of wedding photogs floating around here that does a wedding for $500. This includes 250 printed out images plus a DVD of all images taken that day. I know for a fact one of the photogs has the images printed out though Walgreen's. I just am not willing to do all that work for that cheap. I think I may just stick with portraits.
charging $500 on the regular and including prints and disk ... I wouldn't call them wedding photogs but rather people desperate for cash. (lots of them out there in today's economy)