If one of my "kids" are having company, and they just want a dessert cake, I only charge them for ingredients, as these usually turn into practice cakes, anyway.
If the cake is for an event in their honor, birthday, etc, it is my gift to them. If they want a cake for an event that is not for themselves, they pay full price. That way, when someone asks them what they paid for it, they can quote them honestly.
Theresa 
I'm trying to decide right now on how much of a discount to give to friends and family also. I want to avoid any bad situations that I'm sure would happen otherwise (knowing my family 
) I'm thinking 15% off, just not sure, hope others write in on this one for some insight.
This can get very sticky however I do not charge my family for anything they get free cake but they do support me very much. My in-laws helped with construction of my shop and when I need anything they are there for me. My MIL even paid for some of my classes I dont feel indebted they are not the type of people who let me know that they help me they just ask if I need it. I dont have children yet, but my MIL volunteered to baby sit and even clean my house if I get to busy. My friends on the other hand I charge them if I need it. I recently did a wedding cake for a couple at my church for only 25 bucks and it was a very difficult design, but my family and friends understand that I have creative freedom and can do what ever I feel like. So that satisfies me, if I feel like doing an awesome cake with lots of hand work I do it, but they also understand if I am busy with my real orders they might get a cake with the trusty royal icing flowers. This works out for me. So you have to make your own decisions about this, these are the people who ate cake while you where learning to get your recipes just right some of them may have been great but I feel like my family and friends must have ate some pretty horrible tasting cakes. I have met people (on the other side of my family) who charge full price for everything even to family. I guess what I am saying is if you get support and encouragement from your family/friends then I would give a deep discount but otherwise I would charge the full amount. Maybe you could trade services such as a cake for babysitting, haircut, house cleaning or something like that. Good luck.
GREAT question. I am wondering about that too. I'm in the midst of classes, but did make a baptism cake as the "gift" when our great niece was baptised. I was also thinking of a family/friend discount. Maybe just charge for ingredients for family and a nice discount for friends, as these are a great source of referral. I've even taken my practice cake to bowling and the gals ate it and loved it. I had 4 to 5 inquiries about ordering in just one day. How do you charge for cakes? Is there a rule of thumb? I don't want to overcharge, but don't want to give it away also.
I don't have an official business, but do charge family (and close friends) a flat rate of $20, unless they are asking me to do an awful lot or some overly elaborate cake. It covers my expenses, they give me free reign on the creation, and I get practice. sometimes, I get a little extra because they are family.
I have one sister, who has two kids (now adults) and I have never charged her for a cake for any occasion. My husband (who was much older than I) had 3 adult children and 5 grandchildren. One granddaughter now has 2 children of her own and I also never charge them for cakes. Other relatives pay a discounted rate, usually it will cover the cost of ingredients and a few dollars for my time. I charge most friends full price for cakes, but will sometimes go the extra mile with decorations.
I do some cakes for my family and church as gifts. I am usually the one to suggest that I do them, so I don't feel pressured and enjoy doing them. On the other hand, I charge my normal price for cakes for friends. If they get me a referral, I'll do their next cake for a discount. I have one friend that I always discount because she heavily promotes me. It's great for me and them!! Sometimes, they won't take the discount because they all are so supportive.
My family always tries to pay for the cakes, but I don't charge immediate family- its my birthday gift to them. I consider our parents, brothers/sisters and nieces/nephews immediate. I always get the liberty to do what ever I want... and I practice designs that I haven't done. It adds to my picture portfolio, so I am being helped as well. Too many practice cakes are BAD for the waistline
I sound like the mean one here, if they are having it for an event I charge full price. I do not charge for delivery though. Most of the time they get my test cakes or test recipes, so I do not feel bad for charging full price for something that they are having for a special occasion. All of my friends and family know this and do not expect a discount.
There are so many issues here. One thing I do is if I give a discount I let them know and let them knw why. That way if someone asks them they wont misquote, I dont know if that will work for me or not. It is a new thing for me.
For my immediate family, I charge cost of ingredients and that's it. Usually when they pay me, there's a little extra on the check. They know how much time I put into my cakes, and I appreciate knowing that they value my work. Friends get charged full price just because I don't want someone's feelings hurt because they didn't get a discount but another friend did.
To Country Side Cakes, and all those who have supportive friends and family, I say God Bless You. It is so pleasing to read about members who have this magnitude of support from them.
It is not always this way, as many of our members post opposite reactions from family and friends.
Theresa
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