Well, I am glad it all worked out in the end. Good news!
I discount too, heck I used to only do for cost or for free. But I have found, that the people that get you to do these cakes for charity type groups, also expect the same prices for their own cakes. You get the line, "well that is how much you would charge someone else, but what is my price?"
And you may get one of these folks that sit on the committee for everything their children are involved in, so it isn't one cake a year, it is one cake a month. The cakes are often highly specialized and they tell their friends and before you know it, half of your business is with people who want a discount. It snowballs, trust me.
I spent many, many years doing freebies for friends and family, neighbours, schools, churches, any organization my children were involved in. I saw that as being useful and giving back to the community. I still do that often.
But you have to exercise caution. Because before you know it you are investing a good portion of your time and money in charity works. And it can get so that your own family will resent it and your bank account will be crying out for a good paying customer. Next thing you know, you need a full-time job to cover your charity works alone. And not only that, but you get yourself stuck doing cakes that you have no interest in, no fun at. You get burnt out.
I was recently in a situation where a friend of a close relative was interested in having me do cakes and desserts for her two restaurants. Turns out, she had been buying Costco desserts, even though she has a culinary school graduate chef working for her. Apparently his product was not consistent or was consistently bland and she did not want him making her desserts. No, what she wanted was Costco prices and to get her 300% mark-up and for me to have her purchase the ingredients at her wholesale prices, so she could control whatever I stated costs to be. I don't think so, I don't work for slave wages or work that hard for someone else to be getting a 300% mark-up. I told her very politely, sorry not interested.
Where I am heading is here, sometimes we have to teach people how to treat us. Personally, I am not much for being a doormat, I am flat enough thank you. I don't have a sign that Welcomes people to step on me.
That is why I lecture people on sites about charging a fair price, fair for them. You have to stand up for yourself, stick to your guns and protect your time and your bank account. You are going to have some people that are always going to find your prices too high. Some will be bragging at weddings about how they bargained down your prices to dirt cheap. But I have very rarely heard anyone say that somebody charged what they felt was a fair price, at least not behind a cake decorator's back. And if you do hear that, chances are you undercharged them, haha!