Extortion or realism?

People always ask the question 'Why is this so expensive?' especially when related to cakes. Some bakers do charge extortionate prices for cakes and as soon as the word 'wedding' is mentioned prices can seem to double instantly, however I do think most independent bakers do charge fairly.
Being a student I am one to watch the pennies but when it comes to cooking that money saving attitude seems to go out the window and I'm handing out over 50 cupcakes a week for free. So I started to work out how much this was costing me, and now I won't be giving so many away for free! I worked out on average, for a plain cupcake it was costing me about £1 and that is just for ingredients, and when I say 'plain' cupcake, I really do mean plain, a tiny swirl of buttercream and vanilla sponge. For a chocolate cupcake it was getting nearer £1.50.
But who wants a plain cupcake, or simple Victoria sponge cake? Not many!
So this means you need to add on decorations. Sugarpaste which is needed to cover pretty much any cake costs about £4 per kg (it takes about 850g to cover a 20cm cake), and if you're talking flowers on your cake that will require flower modeling paste costing around £7 for 100g. General decoration such as sparkles or ball balls all add up to more than you would think.
After all of this, I haven't even added in the cost of paper cases or traveling to deliver the cakes. But most of all time, for an independent baker time is the biggest factor in cost. To hand make sugar flowers can take an hour to do 6 roses depending on how intricate they are required to be. Working at minimum wage that would be about £5.80 an hour, so if you're wedding cakes need 200 handmade flowers, just think of how much time that would take and multiply that by minimum wage and you'll soon realize your quote is looking a lot better already!
I constantly hear about how supermarkets sell cakes for £7, but you have to remember this is a supermarket you're talking about! Buying anything from a supermarket is generally cheaper because it is selling to a mass market and is a huge business of factory made food. Getting your cake from an independent baker means you are able to get the exact cake you want, hand made and more delicious!
So next time you get a quote for a cake, just think about the costs before you start saying they're extortionate. But also be aware that some people will try and charge to much (my friend was quoted £70 for 20 cupcakes) so be aware, however good cake will cost good money and good cake is worth the cost.