I confronted the woman and made recommendations to make the cake less expensive - 2 tiers, one cake flavor and buttercream filling. She said she wanted to think about it and look around. I told her not to worry about it, I wasn't going to do it. She's not going to find anyone to do it for that price.
I thank everyone so much for their input; it's really helped me start thinking seriously about how much I should be charging. I've also been talking with someone in my area who has given me lots of great advice as well.
As a fellow beginner, here's what I would offer for $80:
2 cake tiers, 1 choice of flavor per tier (basic cake)
BC filling
BC icing
Fondant accents (those circles & stripes)
NO BOW
I did a baseball cake for $85 last month, even though I knew it was worth more. I did it because (1) it was a dear friend of mine, (2) it was a new design, and (3) I wanted to do cake 
. No way I'd give a discount like that to a stranger.
Quote by @%username% on %date%
%body%