As I have only been doing a few cakes here and there over the last 12months I made them all at very reasonable prices. Should I start to tell my clients now that by next year I would like to be able to make a profit and my prices will be increasing.

So.... what you're really saying is that right now you're losing money? That it's costing you more to make your cakes tham your clients are paying?

Just tell them that you're raising your prices and do it. You'll probably lose some cheapos, but you'll make up for it with the clients who are willing to pay you for what you're worth.

For every customer who balks at my prices, there's another who's happy to pay without any questions. Let the balkers go to Walmart, they'll get what they pay for.

As one very successful baker says, "If no one is complaining about your pricing, then you're not charging enough."

I just increased my pricing again.. I do have people that email and when I give them a rough quote on the cake they want.. some never write back! Honestly, it takes your time, electricity, stress, etc to be giving cake away! Go up on your pricing and don't look back! I would much rather do nice cakes for those who are willing to pay then a bunch of cheapo cakes any day! They are the ones who actually keep coming back too!