I underpriced a baby shower cake for a co-worker, and now have two orders from that party (her family/friends). Problem is they know what she paid for the cake and are most likely expecting similar pricing.
It's my Jungle Book cake (in pics)- 10" & 8", I only charged $45. When I quoted it, I was thinking 8" & 6", and didn't know at that time how much fondant, and detail work I'd do on it. Normally my 8" is $22 & 10" is $35 plus $10 for fondant decorations=$67.
What would be a fair price for a similar cake ( different theme, but similar degree of detail)?
Oh yeah - definitely say that you charged less because she was a co-worker. However, you now need to charge them the "full" price. Or you can say, that you have not raised your prices in some time and now had to in order to keep up with market costs. Bad timing on their part!!!!
OK, so I don't know your area, but that's cheap, cheap, cheap for such a great detailed cake!!! Even the full $67 is a bargain!!! I'd charge $2.50 a serving minimum for that or a similar cake, so my price would be $100!!!
Thanks everyone! I'll just quote them the price and if they ask, then I'll say it was a co-worker discount.
Bonjovibabe- I wish I could get that for a cake! People around here would rather spend $20 for a cheap, dry grocery store cake than pay for a good one! I always get great reviews on my cakes- even before I was into decorating them- but my exposure right now is with middle to lower class blue collar workers who won't part with that kind of money for cake! I need to expand my market area!
I'll just quote them the price and if they ask, then I'll say it was a co-worker discount.
you may be asking for trouble if word gets out of your "co-worker" discount. every co-worker may want to become your new best friend. then, these potential customers will think of something dumb, like the co-worker friend discount. the relative of the co-workers friend / neighbors, because i have bills to pay - discount. simply give them a price. if they question it, be honest, that you underestimated your own cost and time that was spent making it, and to be fair to you and your hearnest hard work, this is the fair price that you are asking. if they dont want to pay it, you are not obligated to do it. LET them go down and get a cheapo grocery cake- it is their loss, not yours. trust me, you will begin to be resentful when you work for less than what you feel you are worth , and as someone else told me recently- when you feel resentful and underpaid, you tend to do shabby work. that makes alot of sense. honesty is always the best policy, and dont drive yourself into the ground for asking for what you deserve (its STILL a bargain.)
stand firm - later you'll be happy you did. even if you lose this order. in the long run...trust me.
if they question it, be honest, that you underestimated your own cost and time that was spent making it, and to be fair to you and your hearnest hard work, this is the fair price that you are asking.
You are right! Honesty is always the best policy! Thanks for setting me straight! 
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