Ahhhh ok. I definitely understand!!! Thanks for clarifying that!!
You're welcome. Jason agreed with this, but seemed to enjoy talking about how to calculate your costs a lot more. If anyone disputes this, I believe I'd have not much trouble digging up a thread where he definitely confirmed that market value, not cost, determines price.
This is the big question, and I believe that customers don't always appreciate the time and effort that goes into making cakes. From a starting point work out the cost of your ingredients for the cake. I even work it out by the slice now using an app called "cake slicer" http://cakeslicer.bakingit.com. It often helps with weddings if you can tell them the price per serving. Don't forget how much time the cake will take you, don't under price yourself.
ASo I think I am underpricing my hard work!!! I charged only $80.00 for an 8" and 6" 2 tier cake and the cake and frosting inside is from scratch[ATTACHMENT=2100]image.jpg (126k. jpg file)[/ATTACHMENT]
Well, how much did it cost you to make the cake? How long did it take you to make? Did it take you 10 minutes to bake, decorate, and do dishes? If after all costs are subtracted and you're not making minimum wage.... you probably undercharged.
Read the earlier posts in this thread about pricing. There is some very good advice on how to do that.
ADefinitely I did undercharged and the thing is that people when you tell them the prices they find it very expensive and I told them is a custom made cake!!! I am doing it for relaxation but people take advantage of that!!!
Stop charging hobby prices then. Those people will go away fast! And don't give in to "Friend Discounts." Read http://www.cakecentral.com/t/751860/things-not-to-ask-say-to-a-baker for some good laughs. Whether it's a hobby or a business, you don't have to take orders. So 'water off a duck's back' as we say down here. :)