I am the same way. Sometimes I feel that I over price and I hate quoting a price for a cake.
Your local market is the largest determining factor in what prices you will be able to charge for your cakes. See my article here: www.cakeboss.com/PricingGuideline.aspx
wow that cake boss has a lot of good information. see i live in a very small town and there is no cake shops here the only this that is here is a very small food market and the cake a way over prices for a cake that is like a 13 by 9 is almost 40 buck! but there is a town that most people go to get the cake from and were i got my wedding cake from its about 30 miles from here. so maybe i should start calling around there and getting some prices. im just starting out and its really hard, i hope to open my own shop here someday but for now i will just make it a hobby of mine i love it so much and it is the one thing i can honestly see myself doing for a long time.