OK--A young mother came to consult with me for her daughter's 1st BD. She needed to show me her concept for the "1st" birthday party.
She envisioned a cupcake upside down with a smaller cake on top of that. Then a cookie or chocolate in the shape of a candle on top, with the letter "S" on the smaller cake. For the little girl's smash cake, she wanted a cake shaped like the number "1" with bright colors, stripes on the sides and polka dots on the top. She needed 60 cupcakes!
I explained to her that I would need to work up a price for her and I would get back with her that night. I figured between $3.00 to $4.00 per cake (and that's being conservative, the little cakes on top of the cupcake would be a booger-bear to frost). Called and left a message.
Young mom called back the next day, and asked how much regular cupcakes were. I told her $1.50 each (I have a hard time doing JUST regular anything...LOL!). She asked how much the smash cake would be, I told her $5.00 (I know-conservative again). Young mom decided that SHE would bake the cupcakes and let the kids decorate them and she just wanted the smash cake for $5.00.
I was not quick enough and said "OK". 5 minutes AFTER the phone call, it dawned on me that I should have told her that the $5.00 was a special price with the other order and my regular price for a small cake was $15.00.
Once again--Non-cakers have NO idea what is involved in making creative cakes! Sorry this is so long.
That is why I state at the beginning that I have a $25 minimum. As soon as they start asking about price, that is where I start.
They will get you if you arent' careful.
You could call her back and be unexpectedly unavailable. For $5 you are being robbed.
I too have a $25 minimum, period - it's just not worth my time or effort to turn the oven on for anything less! Are you even going to cover the supplies with $5?
i hear ya on the non-cakers thing...
some people just expect this massive big fancy cake but dont realise what it takes out of you and how much work is involved...
I put my heart and sole into every cake i make and for people to just said "its only a cake" really gets up my nose.....lol
kylie
I also under cut myself. When I am on the spot about cost it is like my brain takes a holiday. And I am to eager for an order I just trhow something out there. I am really bad if it is for family. I have lost so much on them. They ask at the last minute if I can do a cake. Then when they ask how much I'm like aaahh I dunno. Then I spout out a price and I usually don't even get cost 
I suck at that. But here I go preaching you should call her and tell her no. But if you are like me you won't cause you feel alittle weird about doing it. So good luck 
If I might offer a suggestion here...
Make out a price menu of what you offer on your computer. Do it in a Word Document or even a spread sheet. On it have sizes and prices,
fees for extra things (like an automatic $20 upfee for a carved cake, or $5 for these extra fillings, etc.)
Flavors of cakes and fillings and icings you offer.
If you do cupcakes and single serves and cookies - make them a separate sheet (and I won't do less than 1 doz cupcakes, because it's not worth me turning on my oven for less)
If you do wedding cakes - then write that up as a separate sheet - so you're not confusing them with your regular cakes. (and it also keeps your servings sizes handy) Also - add in that your extras here like cake toppers, delivery, set up, stand rentals, deposits, etc.
then, when someone calls you - and you're dealing with a swiss cheese brain (my usual default brain mode! LOL) - you have it handy by EACH phone in your house and even one in your car.
You won't undercut yourself anymore when you take the time to do this because it just simplifies everything.
It really helped me!
Good luck.
I would call mom back on this one. If you have any other orders that day, tell her it'll have to be what ever flavor cake those are since you can't make batter for just one smash cake, that would be a waste. I'd let her know that the $5 is a discount with the purchase of a cake, but since you quoted it to her, you'll honor your price. But for all future orders, there is a $_ minimum order. This way, you aren't getting any negavite fedback from someone who could potentially be a good customer or send customers your way. Thing I feel worse about for you is that the other moms won't even taste the cake since its a smash cake. I'm really sorry she caught you off guard.
I also agree with the minimum price for cakes. It certainly IS a waste to turn on an oven and spend so much time on a cake that will be smashed and all for $5. I've also been caught offguard about prices. Now my minimum is $20 and that's if I only use buttercream. Wonderful cakes, by the way.
Thanks everybody.
bonjovibabe--I plan on using cake pieces that are in the freezer from other carved cakes.
My brain has definitely been swiss cheese...in addition to my regular job as a home health physical therapist assistant, working at a restaurant in my "off" time so I can be legal and soon maybe getting more baking contracts, I have been helping care for my teminally ill FIL every night.
Definitely burning the candle at both ends, but FIL will not be with us for too much longer and they have always been there for us.
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