I guess I just am in a city that has alot of people that want big fancy cakes but not want to pay the price for them. I keep being told I am charging too much but from every person that has bought a cake from me in the nicer part of the city says what a deal they got.

How do I nicely deal with these customers that want a 10 inch round cake covered in fondant with a hand sculpted monkey with about 50-75 tiny hand sculpted and hand painted bananas on it for less than $50

that is just one customer but i keep having many of them. I dont want to loose business cause they go else where but I dont think anyone else can make what they want for the price they want.

Just quote your price and they can either take it or leave it. If people are saying they got a deal, then you probably need to raise your prices.

If you are still unsure, try reading this thread: http://cakecentral.com/cake-decorating-ftopict-714674.html

The price is the price is the price..... no one can afford everything they want. You need to market to the higher income people, not just wait to see who comes in the door.