I know this subject has been covered over and over, but I'll just add another story to the collection. My aunt called me last night, and said that a friend of hers is having a dinner and heard about my cakes and she wants me to do one for her. She needs a sheet cake to feed 90 people, with an edible image. I figured on a pan size of 18x24. I've been agonizing over pricing, always cutting myself short, so I have surfed the internet checking other people's prices. I found one site in my area that even charges $120 for that size cake, including the image. She could probably get it for much less at Costco or Sam's.
I still was being timid about it, and so I decided on $60. When I told my mom about it, she said I should charge $75, simply because she knows the effort and work I put into my cakes from start to finish. So I called my aunt and told her $75. I told her that if the woman decided she doesn't want it, I completely understand, but that's my price. Of course now I'm totally guilt-ridden and waiting for her to call back and say the woman changed her mind.
But I don't think I should feel bad about the price. I ALWAYS undercharge for my cakes, and then kick myself afterward. I'm tired of not making any money off my hard word. True, the joy comes from the decorating for me, but... y'all know...this hobby ain't cheap.
I guess I just need to vent. I'll keep you all posted on whether she goes for it or not.
Mickig 
I do the SAME THING!!! Heck sometimes, I feel so guilty I even end up giving them for free.. 
...I love to decorate cakes and I like to experience with different styles so I get so caught up in the excitement of making a new cake that I lose sight of the whole money making process. I say that $75.00 for that big of a cake is a good price and you might even be cutting yourself a bit short depending on the type of decoration that will go into it. One thing I have learned is once you cut them a deal they will expect the same deal forever!! 
I feel your pain - I agonize over the price too.
I think $75 for a cake of that size is not overpriced AT ALL! Think about it - a cake you get from the store, a 10 inch round or something, is typically $12-$25, right? Well, if you figure on $1 per serving, you've undercut it by $15 already. I had to really check myself when I started making cakes to sell - I hate giving prices - but, if you are selling them so cheap, you're not paying for your ingredients, etc, and you're right, it's a very expensive hobby!
Good luck, and keep us posted!
I know how you feel. I just quoted the same size cake WITH a smash cake for $80 and felt guilty. I just keep telling myself "it's okay" over and over. I figure if they think it's high, they'll go to Cosco or somewhere else. I make the cakes more for the love of it, not to get rich (though the $$ does feel good).
Hi Mickig,
I am practically your neighbor. I am in Milford, MI which is just west of Novi.
I have gone through these same feelings so many times. I think a lot of the guilt for me is that i love making the cakes that i do and it is more like play time for me when i am decorating rather than work. I feel guilty for charging for me to be able to basically play, but i have also realized that what we do is an art that not everyone can do or has the patience for and some people realize that it does take a lot of time. If price is their main concern, they can go to any grocery store any day of the week to get something average ( in looks and taste). I read a great cake quote the other day that said "Good cakes aren't cheap, cheap cakes aren't good!"
I love it, i think i should put that somewhere on my website.
How much would it have cost you to make the cake?
it is hard. if it makes you feel better, my base for a plain 1/4 sheet cake (basic shell border) is $50. but it was hard making myself stick to that.
The hard part for me is pricing for gumpaste work. The things people think are difficult are simple, and the things they think are simple (cheap) are sometimes difficult.
What really makes this situation sticky is the area you live in. If you are living in a small town with Walmarts and Sams and Publix's, etc on every corner, then people are used to those prices. A good amount of them will forgo the expensive design and great taste to save money. This is especially true if you are living in a town where the rich are few and far between. I have base prices and I am ashamed to post them here, because I know most of you would laugh, but people here wince when they hear them. I am, however higher priced than the grocery stores, and I will NOT go under them.
You know, I did that for the past 3 stacked cakes I did. Then I lost so much money it put my family into a financial hardship
Now my husband modified the Price Matrix for me and I know exactly how much to charge including a great mark-up for me.
I will never undercharge again.
I, too, always worry about what to charge. I don't make cakes that people could walk in and get somewhere because I try to stear people away from the ordinary sheet cake so their occassion can be even more special. I haven't been turned down yet because my price is too high. Most of the time people say "That's it?" and then I feel like I'm cheating myself. I usually give people a good discount if I am trying something new on their cake because I'm afraid it may not look right, but I always make sure I cover my cost plus a few extra dollars so I can save up to play some more with new techniques.
The problem with undercharging is not only expect people to get a break everytime, it als makes it more difficult for thoose who charge the right amount.That could vary. I myself have a hard time in charging the right amount, but I'm getting better for once I really can't afford to work for free.
I also struggle with priceing. I was asked to do a birthday cake for a woman I know. She wanted a 8" with a 4" stacked on top with pink flowers and her name on it. I didn't really want to do this cake so I thought that I over priced it at $45. I thought she would have a problem with the price and go else where. When I told her the price she said ok. My husband says I should bake and he should do the priceing.LOL
I struggle with pricing as well. Jus this Tuesday, I had a co-worker inquire about doing a sweet sixteen cake for her daughter. She asked me how much it would cost without letting me know the number of guests, the type of design or size cake needed. So I asked her how many guests she is serving. She said 50 so I quoted her a base price of $60. She didn't even respond after I gave her the price. Since she didn't respond I figured that she thought my price was too high. I feel bad for charging that much for a cake but I need to be compensated for my time as well ingredients.
I think you're price is a good starting point. Hopefully she will call you back.
Ladies, just wanted to say I too have been there. And finally one day you get burned out and realize, while yes it's something I enjoy doing, cake is a luxory. And if they have cavier tastes they get the cavier bill. I refuse to subsidize anyone's cake habit by making my family pay for it. (in the end that is what is happening)
I am the same way with pricing ... and SEVERAL times I have gone into debt making cakes simply by not charging what I should have. I have even come onto this site and asked for everyones opinion on charging ten dollars for 24 cupcakes since I felt so guilty about it. On my very first paid wedding cake I made a five layer cake all frosted in buttercream gumpaste flowers and scroll work and only charged the customer 160$ !! After that one my hubby said let me work on the price sheet you just keep baking!!
I second that! 
I am getting SO much better about pricing what I feel my time and talent is worth.
Get this...starting out I was so happy to just get customers, so when I was asked to do cakes for our National Guard (for retirements, deployments, etc.) I was only charging $35 for 100 people! Here's the REAL kicker....I used to deliver the cakes to them at no additional charge! 
You live and learn, I guess.
I've only sold a few cakes but pricing is so hard for me. We don't have any bakeries around here and the local grocery store charges $20 for a 1/4 sheet, frozen and gross, yet we live in a low income area. The last ones I sold I charged $65 a 1/2 sheet with chocolate transfers and molded candies, got a tip and still wonder if it was too much but I don't want to under charge either since my time is worth something. With my pricing I've been figuring that if people don't like it they can go to the grocery store.
Ladies, as Twindees quotes "Good cakes aren't cheap, Cheap cakes aren't good"
She's right on that. Don't sell yourself short.
When someone doesn't like a price, I say no problem. I will always get a cake to do. People who have had my cakes come back and pay my
prices. If they want to go to walmart or costco,
then there won't be much love in their cake.
It is hard to charge what your cake is worth because once you give a price that is not a "Costco" steal, then the expectation level of the customer rises...and even if you adore your own cake you can't help but wonder if the customer will adore it too!
I'm still giggling at someone's comment about being in a smaller community that has a Costco, Walmart, etc. etc. on every corner. LOLOLOL .....THAT is not a small community! I live in a community so small that it does NOT even have a bakery in the entire county!
I have actually stopped doing cakes. I miss it badly. Granted I got into caked because I love to bake. A few months ago I did three cakes for a lady. A barbie cake, A 13*9 with a hill, and fondant letters going up & down the hill, a cake with musical notes going around the cake with the FSU logo on top. I really hate to figure prices. I charged her $45.00 for all three cakes. I cried after I delivered the cakes. I told my husband I will not do cakes until I can get my prices together. Hang on to what you think is right.
I'm still giggling at someone's comment about being in a smaller community that has a Costco, Walmart, etc. etc. on every corner. LOLOLOL .....THAT is not a small community! I live in a community so small that it does NOT even have a bakery in the entire county!
I agree, that's not a small area compared to some. I'm 120 miles from the closest 24 hour Walmart and last month when a Taco John's opened it was a BIG deal in our little community.
Guys, thanks for all your moral support. I never did hear back from the lady about the cake, so I guess she thought the price was too much. That's fine with me actually. I'm really tired of busting my %^*& to make a special cake, baked fresh, and losing money on the deal (which is what I usually do). My husband has a fit when he finds out that I "only charged HOW MUCH???" for a cake. 90 servings at $75 is not even a dollar a serving. I wish her well, but I'm sticking to my guns (or cake pans) this time. Fortunately I have some customers who appreciate the work I do.
Mickig
I'd be curious to hear from some of the folks here who make the REALLY, REALLY fancy and beautiful cakes (I know, all of ours are beautiful, but you know what I mean. LOL). Do you who do the grandest cakes here have problems with people wanting to pay the prices you are asking? Do you feel guilty for charging what you do? How do you overcome the guilt or setting boundaries with people?
Thanks
Suzanne
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