I am with Matt. I do not sell my images on CD or DVD. Many photographers do. I will sell a digital file at full resolution for $50 an image.
It is up to you how you do your business model. I have heard many times that I ought to do a session for $100 and hand over a disk. I have no idea why I would want to do that. That would be the only money I would receive.
Granted that is $100 in hand and you don't have to fuss with the photos later. So, it does work for some. I have seen photos done even cheaper, a very decent photographer at lure courses does photos for $2 per image. I am guessing that the person is also a competitor and friends with everyone. I can't imagine why else they would be so cheap!