I'm just starting out and I'm overwelmed by trying to figure out how to do pricing. Do you figure out how much things cost and that's 1/3 of your cost and then add 2/3 for profit? Also, almost everything I buy is usually on sale, do you figure out price by using the sale price of an item or the actual normal price?
I price by slice for wedding cakes. $2/slice for buttercream and $3 for fondant. For party cakes I do the same, or maybe cost x 3. It depends on the cake.
I think the regulating bodies would prefer you give your customers the best price, ie don't charge them full price for something you got on sale. But I don't know there is any real regulation about that.
Download the price matrix, I am pretty sure there is a version here at cc. : )
I started a thread on the same question yesterday and got some fabulous tips. Here's the link:
http://www.cakecentral.com/cake-decorating-ftopict-49960.html
All the best.
I don't ever price anything using a sale price! You never know when you'll get a sale price and if you're changing your prices all of the time you'll just get more confused! I don't even mark things up x3. I just figure out what it costs to make it and then what I would pay for it as a consumer. Some of my cakes cost about $4 to make...I wouldn't charge $12 for a $35 cake. My advice....set your prices BEFORE you take an order and it's your work, so if it feels "fair" to you...then it's a fair price! 
lots of good info from you all and on that other thread link. I'm definently following the advice of not pricing things with sale prices, since you are right that will change and so will my profit because of it. I like Risques advice on the thread on how to figure out prices. I have a lot of work to do since I make a lot of cakes and filling, but that are non decorated. These still take time and money to do since they are from scratch and I don't want to short myself like I know I will.
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