I quoted on a cake and received the following email from the client:
"Hi Michelle
Thanks for the quotation.
As I told you we were chopping around and try to get the best price. All
the other people are in business for a long time and I think you are one
of the new ladies in the business. Therefor I would love to support you,
but your price is R300 higher.
Everyone quoted me R1200. If you drop your price to R1200 I would except.
If not I'll do not have a choise but to reject your quotation. Hope you
find this in good spirit, as it could benefit your business.
Thanks"
To be fair I have been in business two years now and have just opened my shop in August (OVERHEADS), she has approached home bakers for the other quotes. I know there are not alot of bakers in town and most are unreliable and have terrible reputations. I spend alot of time and energy on my cakes and feel that they are worth what I am asking. The cake is a three tier stack of suitcases with two little gumapste figurines on top. Should serve 120. for those of you in the states, R1200 is $118.
I need to answer her email but am noit prepared to drop my price.
HELP?
Don't you even DARE think about dropping your price!!! It's way too low as it is, if that's the exchange rate! For what you're describing I'd charge way more than that. Just send her something like this:
"Dear______
Thank you for your interest in my cakes, but my prices are firm and I don't discount them. If you need anything in the future feel free to call.
Thank you, _________________"
You don't need to apologize for your pricing, and if she wants to go with someone who's got a bad reputation because she's cheap then that's her problem. The stuff about "this could be good for your business" is a lot of cr@p, since all she'd be telling people is that you're willing to back down on the price if they press you hard enough! Cheap people don't make good references!!!
I just thought of this, too...Keep in mind that she said she's shopping around for the best price, not the best cake! 
Don't you dare back down on your prices. Just because she said she can get it 'cheaper' doesn't actually mean she can or will. She could be quoting you her 'budget' for cake and wants to see if you'll meet her at her price.
If you give in now and she comes back later for another cake she'll more than likely try and give you the same story again. Plus she'd tell her friends and so on and so on and everyone want to haggle your prices.
I'd write her back and tell her thank you for your reply and tell her that you wish her well with whoever she chooses to make her cakes but that you cannot sell your cakes for less.
Good luck 
Thanks guys, I needed some back up, was feeling like maybe I was being unreasonable. Will mail her now....
I wholeheartedly agree with every one here! I was asked about some cupcakes for a wedding and was told that they were getting them for .79 each from a particular company. They are having a local (state local) family cermony and an out of state wedding. They told me they were having the same company do both events. I checked out the place and found that the cupcakes they want is 2.99 each, not .79 and to top it off, there isn't a store in the state they are getting married in. Odd. Be true to your craft!
that is waaaayyyy too cheap, I know JHB is more expensive than PE, but a 3 tier suitcase cake enough for 120 servings I would not do for under R1900.00. I did one last year that served 80 and she paid R1300 for that with a smile! And those were 2007 prices!
Tell her to go to the cheaper bakers, she will get what she pays for.
$118 for a 3 tiered cake??? I've looked in your gallery and you really are selling yourself short.
I think its kinda cheeky that she 'thinks' she going to be doing you a favour in the long run.
For suitcase cakes in the UK, i haven't seen one for less than £200 ($400 approx).
Tell her thanks but no thanks and raise your prices, your cakes are great
Don't you even DARE think about dropping your price!!! It's way too low as it is, if that's the exchange rate! For what you're describing I'd charge way more than that. Just send her something like this:
"Dear______
Thank you for your interest in my cakes, but my prices are firm and I don't discount them. If you need anything in the future feel free to call.
Thank you, _________________"
You don't need to apologize for your pricing, and if she wants to go with someone who's got a bad reputation because she's cheap then that's her problem. The stuff about "this could be good for your business" is a lot of cr@p, since all she'd be telling people is that you're willing to back down on the price if they press you hard enough! Cheap people don't make good references!!!
Very Well said 
Just tell her you get what you pay for. I would also think that if she was really getting a better price from someone with more experience, then why haggle with you, just go get the cake from the one with all the experience for a cheaper price. Do not go down and get a deposit before doing her cake if you do take her order.
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