Okay, so I have a new co-worker who wants me to make her a cake. I just bought CakeBoss software and have checked the prices in my area. I'm making her a 6-in BC cake with Fondant and Gumpaste accents. I am charging $2.50 per serving and an extra $1.00 per serving for accents. So cake should cost $42.00. I am VERY bad at feeling bad to charge people I know. AND as of yesterday it was my last day of work and I'm taking a break for a while, so I'm not working with her anymore.

I was thinking 20% discount. Is that too much? I want her to order from me in the future, too. AND she has a lot of friends.

What do you all think?

Thanks!

Give her a MINIMAL discount and don't let them tell you "if you give me a discount, I'll recommend you to ALL my friends." That is THE OLDEST trick in the book! It also implies you are desperate for work -- which leaves you at their mercy! If you don't value your work, nobody else will either. And trust me, they will ALL tell you "if you give me a discount, I'll recommend you to ALL my friends..." So now you're discounting to the entire world and hence, if everyone is getting a discount, then nobody really is, are they??? Not to mention the fact that there is NO GUARANTEE you will EVER hear from either them or their friends again. I had Mrs. "I want a 6-foot tall wedding cake and I don't want to pay for it" tell me "if you give me a discount (translation: free) I'll tell ALL my friends about you and I know a LOT of people." Sorry lady, no bucky, no cakey! And guess what -- she played ball MY way AND I got lots of referrals from that wedding. HA!

Oh, I will add, I did give discounts when I first started out and was very quickly abused by the customer, which put the kabosh on that! However, I did find a few people who said "Oh no, I'll be happy to pay full price for that cake -- it's clearly worth it!" So yes, they are out there!!!

Why do you feel the need to give her a discount?

I wouldn't discount either, why do you feel bad for charging for your work? (I say that but I did too in the beginning) How long is this cake going to take you, and how much effort is going to go in it? Definitely more the $42 worth! If she feels that is too much then she can get the cake elsewhere- she knows she can get a cheaper priced, lessor quality cake from a local grocery store.
If your cake is pretty, and tastes great- she'll order from you in the future, her friends probably will, too. Not based on price, based on quality. Dont' stress on your 'high' prices - $42 isn't that much for a good quality cake. If you start giving discounts to coworkers, friends, family....it will never end and you will feel like you're being taken advantage of. When I go to my friend for a haircut- I pay full price, and tip well- cause I like her! I don't expect discounts- I expect quality!

I agree with everyone's comments. Value your work and time, and the customer's will too!

You are right. I'm going to charge her with no discount.

Fill out an invoice that shows the original cost to be $50...but give her a 10% new customer discount and charge her $45. Three dollars shouldn't make that much difference. Plus you'll be able to establish your prices early. Offering a 10% discount for NEW customers gets you out of the friend/co-worker mindset that thinks that will be the going price for all their orders. And even if you decide to extend that courtesy, you'll be within your original prices anyway! Just a thought.