I really need some opinons. I know the popular views about friends and family pricing, but I'm so far into this situation I just don't know what to do now.
A little background: DH and I are from CA. We moved to VA in 2004. In June of 2007 we took the plunge and signed a contract to purchased a SF home. In March of 2008 it was finally finished and we moved in. Being that all of our family and friends live far away, we have a 4yr old daughter that we wanted to have make friends in our neighborhood and we planned on living here for awhile (esp given the state of the economy), we decided to make a big effort to get to know and make friends with our neighbors. Here in VA people aren't as friendly as they are in CA and we really wanted to try to extend our hand and make some life long friends.
Our neighbors on the right are very nice but are older with no kids. We are friendly and we like them a lot.
When we moved in we found out the neighbors on our left were expecting. We also found out they had lost a baby 3 years prior in a very late term m/c. Even after this baby was born the mom was very sick in the hospital for 6 weeks after the baby was already home with dad. My DH suggested that we offer them a free photo session or something. I stated all of the reasons I was strongly against the idea (word will get out esp in the neighborhood I hope to sell full price to, they'll expect future work free, etc). When we find out the mom is sick in the hospital and the new dad is home caring for the new baby by himself I felt bad and gave in. My husband goes next door to offer our help and tells the new dad his wife (me) would be happy to give them free photography (yes he left it very open ended). Secretly I was hoping it would be forgotted.
Fast forward a month or so later (middle last summer) and they approached me to do new born shots. She then started talking about doing 6 month, 9 month, 12 month, etc shots, about doing year 1, year 2, year 3 books. I was a little taken back. I really didn't want to offend so I kind of let it go and didn't say anything (I know huge mistake...I should of nipped it right there.) Her husband does printing and has access to print prices so my usual line of '50% of my prices is my cost' wouldn't work because he could and would find out that it's more like 90% (I know that doesn't include my time....). So I just charged them a few bucks over my cost with specific instructions not to discuss my pricing or costs with anyone. I figured they are neighbors and friends.
Well I've done the newborn and 9 month shoot. Around Christmas time the mom agreed to watch my DD for a few hours on a Sunday morning while DH and I ran to the store to buy presents for my DD. They got tickets to a football game and called me 9pm on Sat (the night before) and bailed on me. I was pissed and kind of blew her off for a week or so. But ultimately decided to let it go. On top of that I found out the dad used his wonderful (said sarcastically) PS'ing skills and cropped out my logo on some proofs, printed a canvas and prints from it even though they have ordered prints and cards from me for CHEAP!! I also found out the mom spilled the beans to another friend of hers in the neighborhood who has a huge mouth after I asked her several times not too discuss my prices.
Yes this has gone totally the way I expected....downhill.
Here's my problem. If you've made it this far THANK YOU!
The mom has invited us to the baby's 1st birthday. It's a huge deal because of the baby they lost and they won't be having any more. I would love to go. In my mind if I'm invited, I'm a guest not an employee or hired hand. She mentions in some casual conversation about me "taking silly pictures at the party....nothing big". I AM SO NOT WANTING TO DO THIS. I feel a bit used and I am just not into it. If I had written all of the other stuff that has transpired this post would be much longer. But suffice it to say the football game incident was just one of many. It's seems they are JOHNNY ON THE SPOT when it comes to super cheap pictures but any type of reciprocation....not a chance. So now I'm bitter. I know it's my fault. What can I do now? We have to live next door to them and I don't want to have bad feelings but I don't want to continue being used, angry and bitter. I don't have time. I have my own family and career to worry about.
Any thoughts?

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