You are right on track being aware of what your competitors charge. Market is what determines the price of your product. Then you calculate costs to make sure it's worth your while based on what you can sell it for in the market. The Cake Boss article is great, but like everything else you read on pricing on these forums, it over stresses location. If you check out national cupcake chains, you'll see they charge pretty much the same regardless of location. I'm not saying location is irrelevant, obvious these shops don't set up in a slum area.

I get what you're saying about being afraid the quality of your product may not be as good, and if it's not, that's a reason to charge less. But keep in mind you may use higher quality products than they do. I was in the waiting room at my supplier a few weeks ago and a person from a large cupcake chain was in the room arguing with her rep. I learned from that conversation that they were using cake mixes and icing from a bucket. So, don't just price your competitor, try the product.

Someone up there said something about this not being a good way get business advice. She has a valid point. There is plenty of free bad advice to be had. Lots of misconceptions spread as fact.