I don't really sell cakes - I just do them for my family and friends. I've only sold one cake before and I WAY undercharged. Recently I was contacted by a "friend of a friend" about doing a graduation cake. My Mother was at my house the other day and I mentioned my pricing dilema and her advice was to use grocery store prices and charge $5- 10 Less. (This is from the same woman who thought I should charge $50 for my Harry Potter cake). I tried to explain how grocery stores can charge next to nothing because their costs are so low and I THINK she understood. My mother is extremely cheap she probally thinks the grocery store prices are too high!
LOL See now that's funny....my mom is the opposite. I think it comes from her doing a lifetime of hand crafts (knitting, quilting, sewing, etc) and those type of labor-intensive crafts being undervalued when it comes to people wanting to pay for them.
Unless they are in the food industry business, I ignore family member's opinions on anything business. Odds are good they just. don't. get it.
read my signature line for my mom's advice...
My MIL is the same way. She will always ask what I charge for a specific cake, then get all bug eyed and go :Ohhhh:. I amazes me as she has seen how long things take that she is still aghast at the price.
My mom helps me bake when I have a large order and she is frequently here when I'm decorating. Before that, she thought my prices were high, but she understood why people would pay that. Now that she has seen what goes into baking and decorating the cookies, she thinks I should raise my prices, but she would never pay that for a cookie! LOL! I'm the same way. I could never afford to pay $3+ per cookie for a large party, but I'm glad there are those that can!