And there's no reason to give friends and family a discount at all. They'll be the biggest mooches for free cakes that you'll find, and their need for your baked goods will dry up really fast if you charge them what you should. A real friend will insist on paying you what you're worth, and if you want to make a cake for a reduced rate do it because you want to as a gift, not because an instructor told you there's a different rate. There shouldn't be.
Can not agree with this more, I think we've all learnt the hard way about giving friends free cakes or discounts; NO good comes from it - take it from me. The minute you become more successful and don't have as much free time on your hands the quicker you will see who your real friends are.