I opened my cottage food law home bakery about a year ago and have gained clientele at a good rate. My only method of advertising currently is word of mouth. I had a little trouble with pricing at first but have slowly learned how to accurately price my cakes. I do not have trouble with REAL clients, the only issue I have ever encountered was with family and close friends. I never said no and charge them 25% less than my regular clients.
I made a 10 in square (3 layer) cake with a 6 in fondant UT baseball cap on top. This cake was for a very special and close friend of my husband. A lady who went to his party saw the cake and subsequently asked for my info and the price paid which the friend failed to mention was at special rate.
So this lady calls me and asks for the same cake at the same price. Of course I tell her that he received a special rate and that this cake cost so much and so much. Again she tried to barter me down and I finally said "I don't think that I can meet your budget with this particular design. I'm sorry it couldn't work out but if you do change your mind and decide to order it, please call me 10 days in advance. Thank you." That felt so good to say and I didn't feel bad at all!!
Two days later, the lady calls and books the order at MY price. Yay!! I think my haggling days are over!

Good for you! I know that feeling. It's like customers think it's up for negotiation. It's a custom cake, a luxury item. It's not like they HAVE to have this item (think car tires or health insurance) and have no money.
It's just weird that people do that.
I always have to hide my inner smirk at people who turn their nose up at my prices, then come back once they realize that that's the price anywhere they go.