Originally Posted by Blueridgebuttercream
There actually are a class of people who only have so much money in their budget for the cake. Jason, you may choose not to target them as your customers for your business. Does that mean no one should cater to their needs and price range?
Of course not...many grocery stores, Walmart, Costco, etc. offer cakes for cheap, as do legions of Craigslist bakers who don't know how to price. If you can't afford a premium price, you probably won't get a premium cake...it may not be fair, but that's life.
It's fine if you want to limit yourself to people with low budgets, just be aware that you will most likely end up doing very simple designs (or doing elaborate designs for below minimum wage if you don't force your customers to compromise). The former may be OK if you enjoy the baking aspect more than decorating, but the latter will eventually make you resent your customers and your work.
there's more to cake than decorating skill and price; I'd just make darn sure that there is something different or better about my cakes that justifies the higher price.
That's a great outlook, an additional competitive advantage is always a plus. The primary target for the bakery I founded is relatively downmarket, as our basic BC cakes range from $50-150 and are about 90% of our orders. We can make this work because we offer a product no one in the area can match, but if you want to create elaborate multi-tier works of art every week you would likely be disappointed working in this kind of business.