whatever I think if fair in my head but this can't go on much longer.
Using your numbers above and based on the wilton wedding chart (which is what I use to determine pricing), a 12" 2-layer round serves 56. If you're selling that at $30-$40, that's less than $1/serving. WAY less.
I try to use the Wilton chart when pricing for weddings, but when pricing for birthday cakes and such I can't. I just made a 2 tiered cake for a 2 year old's birthday last weekend and was also a guest. Each tier was 2 layers and I used 9in and 6 in pans. That cake should have fed A LOT of people, but even with just 30 guests, most of them kids, the cake was gone before I knew it. Most people don't cut itty bitty slices, kwim? In that case, what do you do?
Using the chart to determine pricing is NOT the same as using the chart to determine number of servings. I know this can get confusing, but it's almost just semantics.
A 10" round serve 38 per the chart. Let's use 35 for even numbers. Let's assume $2 for serving (that's less than I charge, but it's just for illustrative purposes). So this 10" round cake's price would be $70.
Customer comes in and says "I need a cake for a party and we're having 24 people.
Since you know the chart indicates an 8" round serves 24, you figure this might be too small. So you tell her, "Sounds like you need a 10" round cake. This will serve 24-35, depending on how big you cut it. The price is $70."
You don't get into how many it serves per the chart times your rate. You have already figured out the price, which has nothing to do with how many pieces she's going to cut from it.
They are welcome to cut it any size they want, but they are paying the amount of cake it's designed to serve.
If she squawks on the cake size or price, you tell her, "Well the next smallest is the 8" round, which will serve 15-24, depending on how you cut it. Do you think that will be big enough for your 24 guests?" 
A good marketing tool, plus a big help to your customer, is to give them a copy of "How to Cut This Cake into X Amt. of Pieces. Your name and logo is at the top and you have given them exactly how to cut the cake to get the amount that was promised. If someone is using a catcher's mitt on each hand to hold the knife, then it is not your fault the cake was gone before everyone got a piece. It covers your claim for the amount of cake and turns it into the client's responsibility.
I show it to the client BEFORE they order, plus they get to see an actual piece size before they order. That way they know what to expect. At the bottom of the page, have them initial that they understand the cutting chart and the size the cake is supposed to have. It is just the little piece of information that puts you above the rest!
p.s. It also keeps you from having to cut the cake at all the family events, even when you have brought the cake you made.
indydebi, I live in Houston and there are lots and lots of people with lots and lots of money. I know there must be people who would, but, I have yet to come across someone who would pay $70 for a 10 inch cake. I recently did a sheet cake for a millionaire home builder, though, and think I should have charged him more! lol
indydebi, I live in Houston and there are lots and lots of people with lots and lots of money. I know there must be people who would, but, I have yet to come across someone who would pay $70 for a 10 inch cake. I recently did a sheet cake for a millionaire home builder, though, and think I should have charged him more! lol
Actually, after a bridal show, I had a mom drive over 2 hours round trip to my shop to pick up a 10" cake for her daughter's birthday. Since they drove so far, I gave them a $30 discount and they paid me $70 for the cake.
I would not suggest having really low and cheap prices because your customers will be disloyal.
Think about it. Why do we shop at Sams Club? Because they are cheap!!!!! When Kroger had their cake mixes on sale a few week ago all of us went crazy! We all flocked to Kroger and promptly bought 10 boxes. Why because they cost less. But next week we will go to Sams again.
We are being VERY disloyal to Sams Club! Same way with cakes. There are some people who not pay more than $20 for a cake. I refuse to spend more than $7500 on a car. I will walk before I my hard earned money on a worthless money pit that cost more than $7500. That is just me. My mom would never ever in a million years spend more than $20 on a cake. So don't even try make a woman like this your customer.
You will have a really hard time keeping your customers if your prices are really low because when Betty Sue opens her cake shop up in a few months and her prices are cheaper than yours then all of your customers are gone! So then you are thinking "I will just lower my prices!" Your prices will probably already be so low that you will not be able to sustain a business for long.
In the past year, I have raised the prices on my cakes. Those who like them (And I really need to post new pictures b/c they have gotten better!) haven't flinched, I will say. I had one uber-picky woman go with someone else who was cheaper (and did a good job) but I was glad b/c I was going to tell her I was booked anyway. Maybe I am selling myself short. I just did a cake last weekend for a friend and got lots of good exposure from it and now I need to make a similar cake for an acquaintance and I have no idea how to price it.
She just asked for HELP with Pricing. This post went completely off topic and out of control.
The person originally asking the question probably stop reading after the first page.
I know some people don't mean it intentionaly, but they can come off pretty abrasive and condesending when posting. Letting their emotions take over. It can scare people off and make them afraid to reach out for help.
I know it scares me. 
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