My sister's neighbor knows I am trying to get into some sort of business. She wants to me to make a cake for a soccer party, but when my sister mentioned my prices, she said never mind I can make a cake myself.
Part of me wants to say....well go ahead!
But it is free advertising.....lots of parents and kids....
Am I being stuck up????
Well, depending on the extent of the decorations and the amount of people you would be feeding, I would maybe give a discount, but only as long as they agree to place my business cards near the cake 
If the cake is going to be small (20 people or less) I might do it for free ...again, as long as they put the cards out ...
give her a deal but don't do it for free!! She's your sister's neighbor NOT a family or friend. Besides, if she thinks she can do better let her! Don't let people take advantage of you. I did and it was not a good thing! 
Michelle
I would give her a break...but def. not for free. I have a few people who I gave a free cake to in hopes of getting more orders. They got offended when they wanted another one and I was going to charge them. guess depends on how close you are w/the neighbor.
I think I would let the lady make it herself, she sounds like a money snob
It all depends on what you want to be know for. Do you want to be known for backing down and giving a cake for free when somone doesn't want to pay? If you give this cake to this lady, who is to say she isn't going to tell one of the parents there to order from you, but suggest they balk at your prices to see if they too can get a free cake.
If she doesn't want to pay, then I say no cake!! If you start it now where or with who do you stop it?
It honestly sounds like the woman wants a free cake. If she can afford a party with lots of parents and kids then she can afford a cake for the party!
I do not believe in doing free cakes. The only cakes that I do for free are cakes I decide to do for someone, because I want to. If anyone asks me to do a cake, then they pay for it. I'm not made of money
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