It would be great to sign contracts, get deposit, etc, but like the 1st time I worked for this lady, she calls last minute; I should have turned her down, but I have a hard time doing that. The 1st time she called, it was day before party, & one cake was not even decorated (pineapple upside-down). Also 1st decorated cake was for 24 ppl, not 50, & was picked up not delivered, so going from $160 to $200 is a very small increase for twice the product. The shop i worked in briefly charged $25-$50 just for delivery. I'd have to be compensated for my time to meet before hand, too, so add at least another $25-$50, depending on where we meet, etc. The point I tried to make, that some ppl missed, is about the Wal Mart mentality, particularly coming from these conspicuous consumers used to buying very expensive things. I do appreciate the constructive info such as Lori's, but in reality I'm an individual working from home with a small business, and don't aspire to go big, but do use the best ingredients avaliable, deliver on time & get positive feedback from repeat customers of 10+ years. $200 for cakes to someone that drives a Bentley  ($180k car) is chump change. The sushi was just one catered food & it was over $500. Twice as many servings of cake you don't get for free, I charged 20% more & added in delivery for $40. It should have been twice as much, but i'm always trying to make everyone happy. She's the only person who's been vocal about my pricing, and she's one of the wealthiest ppl I've ever done work for. But you've gotta cut corners somewhere to pay for that expensive lifestyle....

I am also a home baker. I am very comfortable with how my set up is. I don't want a big store front. Don't be too afraid to get her to sign a contract. If she refuses and "threatens" to say bad things about your service and product, you have a right to protect yourself. I've had only one instance that this happened. I had a Momzilla and her Bridezilla. She wanted to change everything day before delivery. That's when I decided to protect myself and create the contract terms. Then I posted last night about what Karen said to do. Wealthy or not, she's gotta pay the same way everyone else should. I support you on your efforts! Since moving to my current location, this is what I've had to do. 

Until you can stand up to this woman without flinching she will probably continue to treat you this way.  Until you require her to treat you with respect, she will not.  Every time you take a last minute order without payment in advance you tell her it's okay to do so.  So why wouldn't she?

To your complaint about the Walmart mentality... Everyone decides what is worth spending on and what is not.  She clearly doesn't think cake should be a big ticket item.  This is probably not a customer you really want. 

I also think it's worth mentioning that being a cheapskate is more a personality trait than a reflection of finances.  I am cheap by nature and even if I had lots of money I could never throw it around without a care.