QUOTE
I had a guy at a lab tell me it was not good to store images on DVD because it compresses the images more then they would be on CD is this true, has anyone else heard of such a thing & experienced any issues?
I have not heard this either. If the files were compressed, it is doubtful that it is in the same manner as image compression (think lossless for JPEGs). It is more likely a system file compression like .zip or .sit as it would have to happen when the files were copied or when the disk was burned. Either way, it would be great to know if there is an image quality loss! (Incidentally, you meant "carp" right? As in the fish, or the city by the sea...)
As far as digital files, we also sell them, but do so based on the number of hours we photographed. We used to charge a flat rate but realized that in having people were spending the same amount of money for 200 photos and 1200+, we were devaluing the higher quantity photographs. We also build the files into a few packages, but do so according to our $/hour guideline.
We haven't had any pushback using the above method, nor have we seen a drop off in print sales. The people that are going to sidestep us and make prints themselves, would try to find a way to do it anyway, even without the "real" files. I've seen people scan prints from a proof book, or print a totally pixellated screenshot from their online proofs. Silly people.