re: Will I Kick Myself Later?

Just follow your instincts. I think it’s the right thing. After all all it takes is one bad cake to ruin all your hard work.
At least now you can concentrate on the customers who have paid a deposit. I am sure they will find someone who would do their cake for them at short notice.
Maybe next time just send an email to ask them if they have made up their mind following a consultation and if they would like to go ahead and secure the date and if not then you cam give that date in your dairy to someone else.
This is just my opinion. Because at the end of the day we all want that business.

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