I do reduce rates for friends and local family. Work for free for my parents (but not often...they are 2.5 hours away). However, I've also had friends who insist on paying full rate. Similar example in another industry...I have a friend who owns a meat market. I want him to succeed. Should I ask for price brakes...should I tell him "keep the change" when I buy something?
I do NOT jack up the prices because people have more money. I try to keep prices even for the service being provided.
However, like
@evo said, I'll try to work with people who have a smaller budget and scale back the amount of work we are going to do. "Does that really need done" "It won't cause a problem if we leave it alone - might not look the best, but isn't a hazard", etc... Of course, that is the same reply I'd give to anybody...but to some spending a few hundred dollars to make their house look nice is a drop in the bucket while it is a budget breaker for others. I've also offered to let people pay me over 2 or 3 months (no extra interest...I just write "due in 90 days" on the invoice instead of 30). I don't advertise that and try to avoid it, but if it is the difference between necessary work getting done or not, I try to help.
Finally, there is an "event" (for lack of better word) in town where a bunch of churches and hundreds (or 1000+) volunteers get together once a year to help people accomplish projects they cannot. Some of it is inside stuff. Some is landscaping. People apply for the work through the program. I volunteer a couple of days the week ahead of that event to take care of difficult tree stuff (that is 'necessary' to safety, etc.) and let the other volunteers clean up the mess I make. I used to try to get it all done on the Saturday of the event, but found crews spent the day waiting for me. So now, I find a non-tree project to do that day knowing others get to drag my brush