Sorry to chime in on this from several days ago but I was busy, busy. This echoes a conversation I had with a lady today. Her sister has a home based bakery and apparently does a lot of business. She said she had been really busy last weekend for a wedding for 350 people. She did their wedding cake and groom's cake for a sum total of $375.00. I mean, really???? That is $1.00 a serving. There is no way that order was worth her time. Why do people do this? She has to be frazzled baking and decorating away for all and sundry because she is the cheap cake lady. I would rather be enjoying doing something not cake related than to pay myself that little for that much work.
I know some do it for the experience but I think a lot of people just don't know any better. Or at least that is my opinion. $1 a serving isn't going to cover your costs when you factor in things outside of just flour and butter. When you run a storefront I would hope those are things that you understand. Otherwise you aren't going to last very long. The costs will eat you alive.