First of all, I salute you for trying to do something in these difficult economic times, my friend.
Second, it depends on three elements:
The first element = Do the people you sell to love cakes at all?! When thinking about offering a product or service, we must first discover the need and what we will do to meet that need
The second element = If the answer to the first element is no, then you are selling in the wrong place my friend, and if the answer to the first element is yes, are the people who need cakes able to pay the price you sell?? .. When providing a product or service after determining the need, you must measure the purchasing power of that category of people because each category has priorities. Cakes may not be among their priorities, and this is not in the interest of your project.
The third element = If the answer to the second element is that they cannot pay for it, then you are selling at an exaggerated price, and here you need a cost accountant to help you on the correct pricing, and if the answer is yes, they can pay for it. The question is here and only you can answer it.
What is special about my Cake compared to those who sell the palm in the same area?? Without taking the price into consideration, my friend, because competitors can reduce the price like you at any time, do not take into account the factor that you sell at a cheaper price than them, and think what is special about your cakes??!
I wish I was able to help you, even if just a little :)
Best Of Luck Tosin