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Molly ,
My understanding is that you are correct. It is due to the fact that pastel and paper are viewed as more delicate. For your reference I got the information out of a book, not from my own experiences. However, I did sell pastel nudes in one of my galleries, and had to sell them at a lower price.
It is good to know the reasons so that we can find the opposites when negotiating. For all of us it is good to remember that by not beginning the work before the first installment of the commission is paid is not only beneficial in protecting us from beginning a work that doesn't go into contract. The other purpose of waiting is because once we begin the painting, we lose valuable negotiating leverage. A good negotiator on the other side will play on the fact that we wouldn't want to have "wasted" the time already spent.
In short, the price is negotiable as long as the client can be brought to understand that a pastel portrait is as desirable as an oil.
Anthony
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