I once found a home baker in NH that offered a Party option where kids got to decorate their own cupcakes. I can't find her business anymore though!
I loved the idea and had thought about it, myself. Has anyone done this and can provide tips on what to provide as a "kit", and of course what to charge for the service?

I can't say I have an answer for you but I have also thought about doing something like that. I did a cupcake decorating party for my daughter for her last birthday (11th) and the girls had a blast. They started out decorating aprons then moved on to the cupcakes. We had several different pastry bags, tips and colors and a multitude of toppings. When they finished decorating, the girls did their own little contest and each girl got to take home 4 cupcakes in a cute little box and their aprons. Now I need to try it when my little one turns 6 and see if they handle it the same way or if it is a horrendous mess!