wow. I always thought WE were on the cheaper side at $250 for a 1 hour session and 5 edited photos...but dang.
honestly, I dont think your priceing is bad. you can only charge what the market will bear.
theres NO WAY for you to compete with someone practically giving away their time and work, so dont waste any time or effort even giving them any thought.
ultimately the people looking to spend 50-100 on photos are never going to pay your rates no matter how much they "like your work" because they do not
really understand or value the work. they are just looking for some photos to share online and they dont want to spend any real money on them. quality is well under price in terms of importance. I never cared about FB or CL photographers that did $30 "mini sessions" because they were never our competition.
I never saw one that had more than an entry level camera with kit lens. I never saw one that had strobes or flashes with modifers. I never saw one that had equipment and liability insurance. I would imagine that your FB photog there is no different, and just from the small pictures on their ad i can see that they dont know anything about lighting, fill or otherwise. some of the procedes from that $100 could at least go to purchasing a cheap reflector.
anyway.. my point is...unless you only want to charge $100 for your sessions those people arent your competition, nor are they taking any of your potential clients. admittidly they fill a niche for people that want some quick pictures done on the cheap, but they are not catering to anyone that is going to pay more than what they are charging.
there is a common misconception (what i believe is a misconception anyway) among photographers that if all those FB and CL photogs suddenly disappeared, then their "clients" would have to pay the "real photographers" rates. I call this a misconception because i believe that those people would never pay more than those FB rates anyway, they would just do without, like people do with many things they cant afford. people that cant afford expensive cars buy cheaper cars. people that cant afford expensive clothes buy cheaper clothes. people that cant afford expensive photographers go with cheaper photographers. its really that simple, and like everything else, you often (not always) get what you pay for.