I agree with all your comments. We have our prices. If the person can't pay that amount I suggest other designs according with their budget or refer them to other bakers. Relating to friends I always told them that the amount paid by them was my discounted price because of "x" reason. I have clients that order every year their cakes from me, refer me clients, and so on. I told them that if someone ask the price just said "x" amount because of the friendship, because the long time client relationship, etc. Or tell them the amount that I would charged without any discounts/concessions.