I am having a terrible time pricing my cakes. I'm always giving them away, i'm too embarrassed to ask what I think they are worth. It always seems to be people I know, I live in a small town, and I always feel like I should give them a good deal. I am getting alot of orders for shower cakes, like the one in my pictures, the pink one, it was a 12" three layer cake, orange, lemon, and strawberry cream cheese, and the top was chocolate, with wipped ganach filling. I told my friend $20.00, and she wouldn't hear of that and gave me 100 dollars, I finally took 60.00 after much discussion. I was just wondering what a fair price would be, I am really stressed about this, and I'm hoping you guys can help. thanks
I am having a terrible time pricing my cakes.... It always seems to be people I know, I live in a small town, and I always feel like I should give them a good deal......
If you provide a cake that is what they expected, or even better than they expected, at a fair price, then you are giving them a good deal. You live in a small town ... big deal. I grew up in small towns. And I mean towns that had one stop light or 2 stop signs. (I lived in a one-horse town once, but we had to stop calling it that because the horse died.) Just because people live in a small town, doesn't mean that they don't have a good income, or they dont' have access to TV, newspapers, and the internet to know what things cost in the real world.
..... I was just wondering what a fair price would be, I am really stressed about this, and I'm hoping you guys can help. thanks
A fair price is one that compensates you for your time, materials and talent, and one that the buying party is willing to pay. She was willing to pay $100 ..... it was worth $100.
I've looked at your cakes. Your wedding cake is wonderful....very smooth icing; borders are very even; a beautiful presentation. Your work commands a higher price than $20!
Can I try to do the math: Three 12-inch rounds at 1.5 mixes per round = 4.5 mixes...we'll use 5 for this illustration since you can't buy 1/2 a mix! I once figured out that my wedding cakes use 7 mixes, which at my a la carte price, I get about $30-35 per cake mix. At 5 mixes, you should have charged $150-175. Now I know in reality this may not happen. But it sure shows you how off-base your $20 fee is!
5 mixes, 2 dozen eggs, 6 lbs of powdered sugar, cardboard and box, oil, crisco, butter, flavorings, electricity, paper towels, pan grease, cream cheese, chocolate and whipping cream for the ganache .... honey, at twenty bucks you were in the hole on this one! 
I've seen your cakes.....your work merits more than that. I'm going to get my "mom" finger waving at you in a minute if you don't get your mind right and price according to the talent that you have! 
You have no reason to be insecure in the work you do. You are a talented decorator ..... now price those cakes like one!
Thanks for your kind words of encouragement, you really got me thinking. Maybe it was worth at least $60.00. The wedding cake and the chocolate grooms cake, 250 servings, you were talking about, I charged $200.00 for those two, way undercharged, she ended up paying me 260.00. I used alot of expensive ingredients in that one, really good chocolate for the ganache, different flavors for the cakes, time consuming fillings, I went all out, it was for a friend. These people that I do cakes for do have money, its just that I know all of them, and feel like I have to give them a deal. But what got me thinking, at the reception, they ran out of food, and my friend ordered some more platters, they cost 250.00 per platter, and this was chicken wings, I couldn't believe it, I could have made it for 30.00, something that took them a half hour to prepare, compared to a wedding cake that takes days to prepare. I'm going to try to be strong, but I know how word gets around, and people will think, well you did so and so for $ and they will expect the same. thanks so much
Part of the problem of being "women" is that we are taught to be "nice". Donald Trump isn't "nice" ..... he's a hard businessman. I can understand you want to be "nice" and give them a good deal. But you're a business woman, also.
For those who bring up the "....but you sold it to so-and-so at a lower price", well......l that was then and this is now. Some replies might include "I've had a price increase since then." (what? are you telling me they are still paying 29 cents for a McDonald's hamburger?) OTHER places don't have price increases, too? Have they looked at their local gas stations marquee's lately?
I'm going to tell you again.....you do great work! Be sure you are getting a good price for your talents!
Forget the cake, how much is your TIME worth to you? Think about how much you would have made PER HOUR for that $20 cake.... you clearly have more skills than a hamburger flipper who would be (a) making more money than you and (b) not making a mess of their own kitchen to clean up and (c) not taking away family time - opportunity cost you know!!!!
Go to the business forum and download my cake matrix or the other one to help you to see how much your ingredients cost you. Mine will tell you how much you are making an hour. Hopefully that will be a wakeup call that you need to charge a LOT more!!! Even if you only want to charge $20 
at least give the friend an invoice to let them know it is worth $225. This way they feel like you are giving them a good deal and are not just cheap.
By the way a 12-10 and 8 inch COSTS you $36
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