I LOVE doing cakes and cookies and I am excited to finally, slowly be getting some outside orders. What I hate is quoting prices. I tend to underprice to begin with IMHO, but I just have a hard time quoting say $50+ dollars for a cake. I guess that's b/c I wouldn't really want to pay that for a cake. But, I do want my kids to have cool cakes, so I am learning to do them myself.
Anyway, on that note, my sister's friend found out I do cakes. She wanted to know if I wanted to make one for her DD for Sept. 16. I said I would. She asked about a castle cake. I told her I thought I could do a castle that her DD would love. After looking on this site for inspiration and calculating only the cost for the cake, I'm at nearly $25. That doesn't include my time, my electric, my gas (if she wants it delivered). So, I sent her an email saying I thought I'd have to charge $65 for that cake. Does that sound like a fair price? We're talking a 10in. and an 8in. with columns and cones...MMF, and BC icings. Oh, and 3 princess figurines and 4 princess ring suckers. I thought it seemed very reasonable.
Here's where my "obsessing" comes in. She hasn't replied to my email quote for 2 days! We've been corresponding back and forth and she'd been quick to respond to me until I sent the quote. So I'm wondering, "does she think that's too high?" Is that too high?" "Should I email her back?" "Should I just wait and see if I hear from her?" If I didn't know her, I'd be obsessing a little less, but since she's my sister's friend, I feel like...well I don't know what I feel like. I just tend to obsess a lot and think I needed to vent. thanks for listening! 
Ok, ready?
Please stop obsessing, thinking, worrying, etc.
I think we cake people get so excited about stuff that we sometimes lose perspective. A castle cake is worth a whole lot more than $65 - if she wants it, you get the experience and a pic for your photos. But, if she decides she doesn't, you get your time back! From start to finish, a castle cake would take me at least 5 hours (really, probably double - I'm slow) - so that's $13/hour for some pretty skilled labor. And not including ingredients.
Don't undervalue your time, skills, knowledge, etc. If she thinks your cake is worth it, she'll get back to you. If not, then you both come out ahead!
Christy
I don't think you are charging enough!! I charge on the low end. $1/serv. for non stacked cakes. Just for the 8in and 10in (assuming they are round) I come up with $62.00. Then you have to charge for all of the extra stuff the princesses and cones etc. If she dosen't like the price then she either needs to go with a simple cake or get it somewhere else!
Val
If you had "wanted" to do the cake for less money you would have quoted less. If you don't get this job because of the price then you are better off. Just picture how much work it is and how you feel when the cake is done - and after the kitchen cleaning is done. Do you want to feel like you went through all that for nothing?
I did it once. All day time consuming cake, missed out time with my family. Finished up and then spent the measly $30 I charged for the cake buying fast food for the family because it was too late to cook.
Never did it again.
You may feel bad because somebody rejected you but that's a part of this business I'm learning. She's not rejecting you, or your work I'm sure. That's the reason she came to you in the first place. She just doesn't realize that this isn't about the cake really, it's about the time it takes to create some of these cakes.
Tell her you know it seems high but it's the fair price for something like that. Good Luck!
People always expect you to do cakes for "almost" nothing just because you are a friend. I think 65 is a very good deal, specially if you are going to deliever it. I have the same problem pricing my cakes, I don't want to dissapoint anybody and I really want to make the cake because that's what I like to do but it gets expensive.
I have learned to only say something to my family, friends, and fellow CCers-STAND your ground with the customers. You start to second guess yourself before they even answer. I agree you are too low-especially since all the "extras" will cost you $10-15 depending on where you can get them. It takes a lot of time to do the castle cakes, even if they are "simple". The turrets, towers, and details are not a fast job! Just hold off and let her answer first. FIGHT your urge to lower your price! If she DOES come back and say you are too high, see what you both can do to make it right. She buys the extras and you still charge $50 or you make a sheet cake!
You definately did not charge too much. I think some people have to be "trained" at what specialty cakes should cost. (Decorators and customers). I too have a difficult time pricing but always remember we are not trying to compete with Walmart or any other grocery type bakery. There are times for those kinds of cakes and times for special cakes, which is what you make. Sometimes you want fast food and sometimes you want a nice sit down dinner. You pay more when you want more.
If you had "wanted" to do the cake for less money you would have quoted less. If you don't get this job because of the price then you are better off. Just picture how much work it is and how you feel when the cake is done - and after the kitchen cleaning is done. Do you want to feel like you went through all that for nothing?
I did it once. All day time consuming cake, missed out time with my family. Finished up and then spent the measly $30 I charged for the cake buying fast food for the family because it was too late to cook.
Never did it again.
You may feel bad because somebody rejected you but that's a part of this business I'm learning. She's not rejecting you, or your work I'm sure. That's the reason she came to you in the first place. She just doesn't realize that this isn't about the cake really, it's about the time it takes to create some of these cakes.
Tell her you know it seems high but it's the fair price for something like that. Good Luck!
I totally agree. I once did a cake that was the bain of my existance and it was a freebie. I ended up walking away feeling just wretched! I was a complete grouch to my family becasue this cake gave me so much trouble...no one dared walk into my work space and after all was said and done I didn't even get a thank you...all that misery and grouchiness for what? NOTHING! I realize you are charging for this cake (and for Nh that price is very very cheap) but if you charge any less you are going to be pretty much giving it away, and instead of feeling good about what you've done, you'll feel used and aweful. Don't do it to your self. Stick to your guns, if she does not order fine...there IS at least 5 more customers right around the corner, trust me. You'll be surprised at how quickly things will pick up.
Thanks, everyone. I could scale the cake down...leave out the turrets and cones and dolls and just do like a 9 in. and 6in. with a door, some windows and flowers for less money, but I know it wouldn't be what she thinks she wants. And, as I mentioned, I think I tend to undercharge. But, i figured since I know her and it's my first attempt at a castle, $65 will cover costs and I'll make at least something off of the order. Castle cake #2---if there ever is one---will cost more I imagine! 
I'm just going to wait and see if I hear back from her. I need to put it out of my mind! Even if she thinks my price is too high and doesn't want the cake, it's not like I am trying to be unreasonable or rip her off. I haven't done anything wrong and she would expect compensation for any job she performed? Right? (Gosh I sound like Stuart Smalley..."I'm good enough and smart enough and doggone it, people like me!.")
Thanks again for your posts!
Unfortunately sometimes people have an unrealistic idea of what custom cakes cost...at least here they do.
I can't tell you how many times I've heard...Gee, I can get that cake at Wal Mart for $20.....ummm, no you can't. You can get A cake at Wal Mart for $20. If you want the cake you get at Wal Mart for $20, I can give it to you, but it won't be a castle, have fondant, gumpaste, tiers or anything else.
It'll be a tiny, thin 8x11 sheet cake with a single flower slapped in the corner. That I'll do for $20!
Your price was more than reasonable. Don't stress over it. If she wants a custom cake, she has to pay for it.
I do the same thing. I have a hard time telling someone that it is 35.00 for a simple 1/2 sheet cake. I get nervous. I have just recently started assuring them that they won't be dissapointed. That what they get for the price is much more that a grocery store cake. If I loose a client due to price (which I haven't yet) Then I guess they weren't worth having anyway.
I think you may be shorting yourself a little on the Castle cake. That is going to be alot of time and energy into that cake. Not to mention the anxiety you may cause yourself, overthinking it until it is done ( or you get a report back ). But if your comfortable and you might be making some sort of profit on the cake then it is a good price, not any less.
cCc
UPDATE: I just got an email from the mom saying, "We're in. Let us know if you need the money now or anything else from us."
I guess the price was OK. My OCD side wants to know how she felt...you can't tell through email, but I think it's best to leave it alone...assume she didn't bat an eye...and make her daughter a kick a$$ cake so that if she did question the price initially, she won't after she sees the cake!
Thanks again for your posts. I've gotta "toughen up" if I'm going to have any kind of success at all doing this. 
UPDATE: I just got an email from the mom saying, "We're in. Let us know if you need the money now or anything else from us."
to which you should respond "yep just needed to know when you could drop off the candy rings, and figures"
(I still think she should supply those items, we don't buy the wedding cake toppers do we?)
You done good lady! I am proud of you! 
Congratulations on the job!
As an unrelated business owner, I have to say the price is more than fair.
In working out costs, a direct labor figure is added before markups and that cake would be reasonably priced at $125.00 from the sound of it.
Direct costs including labor are figured in and then marked up in order to ensure there is enough to cover overhead costs of business and thereby leaving something for profit.... hopefully more than the cost of a happy meal lol.
Congratulations!
I just charged a customer $95.00 for my castle cake and that's only an 8" and 6" and she seemed a little 'hesitant' and asked her 4 year old if that's what she really wanted and the little girl was yelling 'yess castle castle' in the background lol.. I did feel a little bad and I'm now starting to wonder if maybe I overcharged? But the other part of me says 'whatever, it's soo much work involved and I don't feel bad anymore about charging more money. (I used to WAY undercharge - the m&m cake in my pics I only charged $35.00 for!)
Eventually it won't bother you anymore to up your prices..that's what I learned from here!
Thanks!
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