Cake for less than $1 / serving – yeah, that’s pretty outrageous! I think sometimes we have to educate our customers and really make them think about what they’re buying. I like to ask the client "If you took 250 of your closest friends to {Insert Bad sit-down restaurant here} and bought everyone dessert, how much do you think that would cost? Now imagine that the dessert you bought was a beautiful, custom made creation made to your specifications… " Sometimes I ask them “If you bought a hamburger big enough to feed 250 people, how much do you think that would cost?”
But to answer your question, unless you just feel like “gifting” your time and ingredients to this person, tell them you can’t sell cake that cheaply without losing money. Tell them to shop around and see if they can get that much cake anywhere on that budget. My guess is that she couldn’t get 250 cupcakes from the grocery store for $200.
Jenniffer White, Cup a Dee Cakes - http://cupadeecakes.blogspot.com