That I don't know because I don't know what is normal for where you live. Here where I live that is really expensive and I wouldn't buy it, but thats just me. especially $13 for one 5x7 here is a LOT!!
Do you think the majority of people at the church could afford that?
If you price it so high that only one or two families buy from it, you aren't going to make anything so you want to adjust your prices so that more people will buy.
I don't know how the church is but you have to consider, many people may not have their picture taken very much and don't know how prices run so that may seen expensive for them.
Here I would hear the excuse "Why pay that much when I can go to WalMart and get a whole package for less than that"
Which is true and since it is going to be a basic formal family shot in a small area (since it has to be a certain size for the directory and not this real creative photographic masterpiece, it really isn't going to be a lot different wherever you go to take it and I use to work for CPI (who owns the Sears and Walmart studios) and no problem to take pictures that look as good or better than the family pictures that are taken for church directories (I also worked for a very well known church directory company, the one my husband did, but in their school and senior portrait division)
Remember these pictures aren't going to be your normal photographs you are use to taking. You shoot rodeos, something that is unique, they can't get that actual scene again of the picture you took so it would be worth more.
You have to give them a good deal since this is a basic church directory regular formal family shot they can go anywhere and get. Familes also buy packages more than they buy an individual so I would offer both. Maybe 1 16x20, 1 8x10, 1 5x7 and then put together packages. I don't know if you are familar with traveling photographers who come to different towns and set up a table outside of a grocery store and give away free 8x10s if you make an appointment, then you take your pictures and a few weeks later they come back and have all these packages put together and you just have to buy them then.
The company I mentioned my husband worked for in the directory business that I worked for in the other department, this is what they offer
• A FREE directory for every family photographed plus additional directories to use in welcoming new members
• Either a FREE 8x10 color portrait or portrait coupon for each family photographed
They also offer Free Online Directory as well.
Now this is different since you aren't actually making the directories, but giving the church the pictures for them to print their own??
This is why many churches actually go with professional companies who do church directories. They aren't out any money then since they don't have to pay for the printing. The company is paid from the sales to the individual families, as you are doing. If the church decides to produce its own directory, however, it must budget all of the expenses or find ways to pay for the project, either by charging for each directory or by selling advertising (another time-consuming job)