The "what it could be" is a Joomla installation. I don't know the US market but I believe that it is a reasonable price for a really good Joomla project. Installing and customizing every component to meet your needs, some design touches to make it a bit unique and of course training on using the Joomla CMS.
The example that he presented you, in my opinion, is not worth $1600.
I would charge around 1000 euros for the whole project, which is around $1600.
PS: If you created the website you have online now by yourself, you should be able to work on Joomla and deliver a nice result.
Last edited by QSpec; 09-24-2009 at 03:35 AM.