I generally do not lower prices for large orders. My costs are the same, or VERY minimally different. Now it does depend on what you mean by large orders. If someone wanted to order 500 cupcakes, once a week every week for a year, *guaranteed*, then I'd cut a deal because I'd be able to depend on that income. But a 1 time or 2 time order for that quantity would be all in a days work.
You can't figure out a price until you know every single penny that you have to pay for every single item you use.
I have a book and I keep track of the up to date prices with a "it goes on sale for X" column. I'm old school so I do everything with paper and pencils and a calculator instead of spreadsheets etc. I know what 1 cup of each recipe of cake batter weighs and how much that 1 cup of batter costs me. I have a rough estimate for energy costs and a time cost that I put onto different recipes depending on how much labor goes into them.
I agree with leah, if someone is ordering something big, and often and you can depend on that order as income then I would cut a deal. Everything else, food cost plus energy plus labor. When I see that amount I add on the cost of the cardboard and box and set a price.
If I get grief over pricing I state that my price is based on my costs and I can not comment on anyone elses price because I don't know their costs.
I discount my corporate and wholesale customers.
If it is a lot of the same thing, I discount because it is easier and I have enough room in my pricing to do it. For example, a cupcake wedding. I don't need $3.50 each when it's simple production work.
On buffets, I discount from the a la carte menu. I give full pricing and when they narrow down what they want, I discount here and there and call it a package deal.
But as others have said, you really need to know your numbers and build that occasional discount into your overall business plan.
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