Hi Vicki,
Only just spotted the discussion. Like the others have said, stick to your guns. I always see it as a big flashy-red-alert-thing when clients start dictating what the value of our work is. That's "very potential serious ongoing problem" time. I pretty much resolve to not meet a clients dictated pricing if at all possible.
On the other hand, if it's a bean counter then perhaps we should put it in to their perspective. If there are 100 people attending the conference, then include the full duplication of 100 sets of the 3 final discs. In addition to that, give a "per set" pricing for the DVD sets that includes the amortisation of the shoot/edit costs.
If this should happen to be $80 per set (price of 2.5 retail movies) it makes no-brainer sense to the bean counter. And working for $8000 minus in-house dupe costs already looks better to you.
But definitely stick to your guns.
You can always contact me for a chin wag if you wish to. I'm in Brisbane.
Andrew
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