I turn down orders all the time. I have been in this business long enough to realize no one is worth cramming for. And, it isn't fair to those who placed their orders well in advance for you to speed through their orders to get to a last minute one.
BUT, I never recommend someone else. I don't feel comfortable recommend using someone that I have not had experience with or tasted their products. I would feel bad if my customer had a bad experience with someone I recommended. So when someone asks me to recommend someone else, I tell them this and tell them to do a search online or on facebook.
I could have written this, too.
I tell people that because I'm always the one making the cake that I have no experience with other products, pricing, experience, etc.--and really, that's 90% true. I'm not so worried about losing a customer as I am about being associated with a cake wreck or sticker shock.............
I send people to a local supply shop that keeps business cards of decorators on a bulletin board in the back. I want the client's choice to be theirs and only theirs.