I would like to add: The baked goods market (cakes, cupcakes, cookies, etc) has been flooded the past few years with both "hobby" bakers and folks setting up home-based businesses (legal or otherwise). For the most part, these dabblers have set prices so low that consumers expect to pay very little. This hurts the people with legal/established businesses who (up until now) have earned a living by baking/selling. Adding insult to injury, most of these new dabblers have full time jobs and therefore a source of income.
Read more at http://www.cakecentral.com/forum/t/768330/hobby-baker#rKRFbSFwDFBORFfd.99