I know how you feel. The entire reason I started making cakes was because I couldnt afford them from a store for my kids. Then this was an outlet for others who were close to me to get a good deal. My husband put his foot down because I only told people to pay me for the ingredients used for the cake. We have since come to an agreement, that no matter what it is to make the cake, I charge times 2. So if it is just $6.00, then I am paid $12.00. I figure in for boards, boxes, special decorations, etc. No, it is not as much as a deli would charge, so people still get a deal and they get a different product rather than something that could have been at the last birthday party they went to. This makes me feel like I am getting something in return also, without "sticking it to someone." Now for weddings, I charge times 3. Just because they stress me more! The hubby still fusses that I am not getting paid enough, but when I have my own bakery, we'll worry with raising the price. This is a 100% profit, who else makes that? lol
I'm getting a big head joenshan. 
Thanks guys.....my husband agrees on your pricing methods. Have any of you had someone turn down a cake because it was too high? What did you do or say afterwards????? I wouldn't know what to say if someone said it was too much. I would not want to back down, but how would I handle that situation?
I have only made cakes for people I know, or people they know. They have seen what I can do and will pay me whatever I ask for. One time I quoted a guy $50, but after a couple days of him "thinking" I told him that "maybe I could do it for $40". He looked at me shocked and said "NO, I would pay $50", then he ordered a more expensive cake!! 
Don't sell yourself short, this is something I am slowly learning the hard way!
Staceface, I have had someone turn me down and I was devastated, but I had to get over it. She was really nice, said she knew I was an "artist," but it was just more than she wanted to spend. For her, I have had 10 other people say that my prices were very reasonable, if not too low!
I think I told her very nicely that I based my prices on the cost of supplies and how much time the cake would take to decorate and that cakes were more labor intensive than many people realized and that if she changed her mind to please give me a call.
The reason I had to get over it is because I once let someone talk me down from $20 to $15 for a character cake and I had a terrible attitude the whole time I was doing the cake. It wasn't fun for me at all and that's a big part of why we do this, right?
I get flabbergasted quoting prices off the top of my head so I finally had to create set prices and put them in writing on my web site so I would make myself stick to them. I avoid the uncomfortable price aspect of the conversation by giving someone my web address so they can look at examples of my work and asking them to get back to me. I figure they can look at the prices there and if they think they're too high, they don't have to call.
I'm going to try and attach an Excel cake pricing matrix that I found on this site and is excellent for figuring out individual ingredient costs. If it doesn't work, you can search the forums and download it there.
Okay.. if they are single layer no filling sheet cakes.. that's 175 2x2 servings and $350.. if it's 2 layer sheet cakes with buttercream filling that's 375 1x2x4 servings and $750..
The tiered cake is 118 1x2x4 servings and $354..
So... you are looking at $705 or $1104. You are WAY underselling yourself sweetie. I have a flat per serving rate and a standard 1x2x4 serving size (2x2 for single layer sheetcakes). You need to be sure that you are making up your costs in supplies and paying yourself for your time. You do nice work.. make sure you give yourself credit for it!
Thank you so much for the pricing matrix! I have downloaded it and I'll go over it later with my "manager" aka husband.
You all have been a HUGE help! I really appreciate it....don't know what I'd do without you guys.
My pleasure. When I'm pricing a cake, I keep in mind that it's roughly $5 per mix & ingredients, including buttercream, and one mix is roughly 12-15 servings.
Is this for scratch or box mix??
I really like your pricing matrix, very simple and I downloaded it as well. Thanks!
Oh I had someone turn down a cake last week 'cause it was too expensive for her. I've also had someone not call me back this week, after quoting a price. I used to try and get every dollar but I learned that if I sold a cake cheaper than what it was worth, the people that they referred would be looking for the same discount and I would be accepting a bunch of cake orders from people that thought they could get a STEAL from me. Breaking my back to do hard work and not be appreciated for it. As a home baker (or non-wholesale cake decorator), you can't afford to charge what Walmart etc does. You would be cheating yourself. Our supplies cost us more than Walmart etc. Our work is more detail than Walmart etc. and our quality is better than Walmart etc. (no offense). There will be people that don't care what the cake looks like, there are those that you can WORK with and there are those that will try to swindle a cake from you for nothing 'cause they think they can. I want to be appreciated and it's sometimes an insult when someone tries to get more for less AND THEY KNOW they would pay more somewhere else. You'd also be surprised to know that there are some people that would look at the higher price and associating it with quality. Ya know, the dollar store dress compared to the designer boutique dress. Here in Tn, some brides will drive all the way to Ark (to Lowes..bridal store) just to get the best dress than to stay here and go to David's Bridal. I've been up there and it seems like a small town (compared to where I am, some would say it's in the middle of nowhere)...but hey, the quality of the dresses are SUPERB! If you're good, you're good...no matter where you are. Your work is good...how far are you from Memphis area? They may not pay $700 for a wedding cake there...but some here would. I deliver cakes as far as Pine Bluff Ark....and I'm paid to travel. Believe me, there are people willing to pay you what you are worth (plus a tip 
). I understand how you feel though, 'cause I've been right where you are!
True Story.
MOB calls to talk about cake. 150 guests, her cake budget is $200. It was all I could do not to laugh. I quoted my price. She responded that it was too high, although she was sure that my quality and work would be much better than WalMart were she'd also priced a weddng cake.
MOB, "Can't you match WalMart's price."
Me, "No I can not. I will not."
MOB, "Well, what am I going to do? My daughter wants a really nice cake. Both other daughters had nice cakes, and I just don't want this daughter not to have a nice cake."
Me, "Maybe you should call WalMart."
Yeah, I'm a smarta$$.
Leahs...LOL...THAT IS TOOOO FUNNY!
But I understand! It's not Leahs Let's Make A Deal Designer cakes!! 150 people @ $200...that was funny wasn't it 
What a discount!
Hey, that's more than one supermarket where I live is advertising. They offer wedding cakes starting at $1.25 per serving. Not that I would eat them, but they sell lots of them. They're actually only 3" tall, with a huge top border, which makes them look bigger (yes, I measured!).
And if I ever go into business, and that is what a potential client will pay, I will whip out the Yellow Pages and give them the telephone number to their nearest location.
Theresa
On a slightly related topic, there's a really high end cake designer in my town. I'm talking in the $7 serving range. I've had the cake. It, and I swear to you, looks like a one tier from a 3" pan, torted to into three layers. Then there is a full inch, maybe an inch and a quarter of icing on the top.
Someone please explain that to me.
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