re: How to price your cake?

I don’t think it matters where a cake comes from, but what you want to earn to make a good living. Considering that you want to grow your business, I think it’s better to charge already on the level as if you would run a bakery. This money will help you to grow your business and expand, and later when you move out from home you don’t need to revise your pricing structure.

Also, I think you should verify your pricing with your competitors to not ruin the market and their business. Underpricing will give your business a ‘cheap’ look. You should pride your work, which in exchange will be reflected in your client relation ships. Charge what is decent and if you are not known, you can offer special deals that are limited by number/time.

Another thing to consider; if you serve now clients that do not see the value and time invested, you will always attract these clientele, based on word-of-mouth marketing…

Pricing is a part of marketing aswell, so do think what kind of clients you want to attract and then think on what they respond well and how they would be attracted to your business.

Here are a few links I grabbed over time related to that matter:
http://www.thebusinessofbeingcreative.com/2013/03/04/value-vs-price/
http://www.thebusinessofbeingcreative.com/2013/02/25/money-is-not-real/
http://buildalittlebiz.com/blog/2010/9/23/pricing-46-random-tips-to-help-you-price-your-stuff.html
http://www.cakeboss.com/PricingGuideline.aspx
http://weelovebaking.blogspot.ch/2011/07/what-is-your-real-cost.html
http://www.motherofcakes.net/2012/01/03/free-cakes/

Hope that helps