The wife of a guy I know started selling cakes a few months ago from home.
I met her for the first time today and she was telling me she's out the door with Christmas orders already. Her words were " I'm soooo busy, but why would people go to a bakery when they can get cake so much cheaper from me". I told her that I charge more than my local bakeries for my cupcakes and she couldn't believe it. There's no way she could be making any money at all!

Thank God for this site. I learned not to undersell my cakes

You're so right, Valkstar! I just had a revealing experience. I had the chance to do a cake that I was going to have to charge a lot for and I was afraid that my client was going to turn me down because of that. But one of my cake mentors (and the person who sent me this client in the first place) told me to enclose a picture of the design with the e-mail where I quoted the price. I was totally surprised when she accepted and was thrilled with my design idea. We really don't have to worry about underselling our work!