You know what they say, you're only worth what the market will bear. Try to figure out if its possible to still get work in your area if you're priced for more..and if not, then try to figure out how to set yourself and your service apart from the competition (however that is).
There's generally two brackets of people who go for photos - those that need them, those that want them.
Need
A lot of people don't know the difference between what they want - they want to be shown, easily, conveniently and straight off the bat why you're the better deal. Consider when you go for a car wash..you're not really thinking about it, all you want is a your car washed. You may not car how it's done, whether they do it by hand or have a big machine..all you care about is getting it done and having your product (a clean car) in the end.
Want
Consider though, you have had bad experiences if you dont shop around for not only the best deal..but the best service. Car Wash Plus will not only wash your car in under 30 seconds they will also give you a lollipop and a free decal while you have a complimentary coffee in the waiting area. They charge 20$ a wash. Car Wash Limited down the street only charges 9, though they have a couple of kids with squeegees and it takes them a good 10 minutes to give your car a proper wash.
Often people are used to accepting the fact that you get what you pay for. Illustrate that when pushing up your prices..like I'm about to do as I re-evaluate my pricing structure:
A sample of me from my website
http://www.synergystudiosphotography.com/portraiture/
Gold Package: $150.00
* Up to 1 hour portrait session at location of your choice
* One DVD of a slideshow of the session
* One disk of proofs optimized for web use and for deciding which images to print
Diamond Package $250.00
* Up to 2 hours of a portrait session at location of your choice
* One DVD of a slideshow of the session
* One disk of proofs optimized for web use and for deciding which images to print
* Free print credit of $25;
Aurora Package $350.00
* Up to 3 hours of a portrait session at 2 locations of your choice
* One DVD of a slideshow of the session
* One disk of proofs optimized for web use and for deciding which images to print
* Free print credit of $50;
In my market people don't really see the value in something like that..not anymore, anyway, their tastes have changed (or perhaps I am just finding more of the paying clients want a change); they prefer a product they can see, feel, have in their hands within a few days after the shoot. Then there are those that don't have computers, so a part of the product is useless. The general consensus with my market is - they do not see the value in the product I am offering..so I either have to lower it (impossible) or manipulate it to increase the value.
Rather I was planning on swapping out web CDs and DVD slideshows for custom designed albums; designed with a catalog feature so people can order from the catalog the prints and other options they want..and yet still have a quality product to keep in their living rooms or wherever. A lot of people I'm starting to see don't have access to the web or do not socialize on places like facebook or myspace..or are used to receiving prints and wallets. So in my case; i need to adapt or ...just not get any more business from those kinds of clients.
Short answer: If you can afford to raise your prices without sacrificing your business - by all means you're more than good enough of a photographer.
Though keep in mind..:If you have issues raising your prices with your clients and they have issues with the product they're now paying more for:
1) Change your target market
2) Convince your current market why you're a better investment (ie: in my case I am increasing the value of the package while at the same time answering to their need)
Hope that offered some insight.
PS: I'd be starving if I offered what you were offering
though, I live in a really ...unique market...and it's (in)famous for having a unique climate for businesses of all kinds. No pun intended. As a student I can afford to live a little bit cheaper than a regular person...otherwise if I were completely on my own I would have to markup my time by triple, at least, otherwise I could not afford to operate. This is a big thing...consider how much business you can get for the amount that you charge and factor out how much you need to take away in order to live. If you can't live doing 99$ portrait sessions then there is no real point to doing 99 portrait sessions - it's just not possible.
If I didn't have a fine art segment in my business I would not be able to offer prices as cheap as I do. Consider that too...maybe if marking up senior portraits is not an option for you...perhaps you need to allocate or create a new product, service that will allow you to make up the difference and make ends meet.
Just some more thoughts
In the days of walmart, jostens and other mass corporations doing portraits for pocket change you need to set yourself apart and be unique. Target the people that want what you offer..and examine your competition. If Annie Applegate up the street is doing exactly what you do, for a better price, offering more prints and accessories then chances are you'll find it a bit more difficult to do this. If you can manage it, though, then you definitely should.
It's pretty straight forward - just target the want market rather than the need market. A lot of this mumbo jumbo is done in the back of your mind or on paper (try googling "marketing plans for photographers"..there used to be a website that held a few of them that taught me lot about all of this), it's not something you think about everyday, just once and a while it helps to draw out a map of where you want to go and how is the best route to get there. A lot of photog's its not their style to be behind a desk or jot down ideas, though for some it does help.
Old adage: Those that fail to plan; plan to fail.
I'm also in a similar situation as you...young, a student in college, freelancing all over to pay the bills, not really completely self-sufficient and solid but getting there ....the one thing that really helped legitimize me was: Consistency, professionalism, and just offering what I have been told is: "Good business"
It's my mantra, good business leads to good referrals, good quality of product means people will pass that on. Every shoot you do is an advertisement, every print you put out is an advertisement and when you think about it that way you do a lot better to ensure everything you do is done as best as you can do it as many times as you can do it. Been in business for less than 8 months, and for the first 4 I didn't know up from down.
Experience; learn it, teach it, pass it on and when you can..sell it.