Most people just assume that Dixie and Lucy are both purebred Yorkies, even though Lucy's a Silky/Yorkie cross. The people I've told just nod, they don't ever say anything about designer dogs, but on a forum, I've had someone ask me about silkshires. Here is the pm, and my reply:
"Your dog is beautiful. We're trying hard looking for a Silkshire. Is there a breeder you would recommend? We live in NY city area but we're willing to travel."
"Thank you!
I'll be honest, the reason we have a "Silkshire", is because we were irresponsible, and bred our Silky with a Yorkie. Lucy is a puppy from the litter. If you want a Silky/Yorkie mix, I'd reccomend looking at your local SPCA, or shelter. Rescuing is a great thing to do, and there are tons of mixed breeds waiting for loving homes."
Other than that, I've never really had any problem just telling them she's a mix, and going on with my day.