So what I'm hearing based on all the comments I've read is that I'm significantly underpricing myself! For a 4" and 8" covered in bc with fondant zebra stripes I charge $55 and for both tiers to be covered in fondant $70. I've got to get firmer with myself and not just give away the cake because I'm afraid they won't say yes.
A good way to tell if you are undercharging is to take your price, subtract ingredients/supplies and overhead, then divide the remaining amount by the number of hours it took you to complete the order to give you an effective hourly wage.
As an example: starting with $55, if ingredients and supplies are $15 and overhead per order is $10 (e.g. $500 in annual license fees and insurance / 50 orders per year), you have $30 left. So if the order took 2 hours to complete (including prep, baking, decorating, packaging, and cleanup) you are in good shape with a $15/hour wage. But if you spent 8 hours on the order, you are paying yourself $3.75/hour. Before taxes.
This is an oversimplification, in reality your wage would be lower since you would also have a markup in the 15-45% range for profit that is reinvested in the business.