I don't think it sounds that much no. Is it a design studio or a freelancer?
A design studio needs to cover the studio costs. A freelancer needs to cover their hourly fee and expenses.
Is the logo going to be used across a wide range of promotional materials, internet, letterheads, brochures, on building side etc? If so then that takes time to do as just makes the design process more restrictive. There is more to take into consideration.
A lot of people think because a logo is small it shouldn't take much time but actually the size is irrelevant. Its very important that its correct and well done. Depending on your business it can give the completely wrong image and be disastrous for a business if not done well.
So if anything your tiny logo has huge importance.
Depends what sort of business it is though. Say you were a beautician and you just wanted it for some business cards and nothing else, there is a certain type of look for that sort of thing. It wouldn't matter massively if it wasn't a cutting edge design, it just needs to suit.
If you are starting a business where image is everything, say a funky clothes shop and you wanted the logo to be used as shop signage it would be much more important, as it not being right could mean you don't have people coming through the door.
It needs to represent what you are all about and so sometimes you can get away with less and paying less then at other times.
So you probably could get cheaper but it depends if that is going to be in your companies best interests. Saving money now might cost you in the long run or it might not be worth spending out so much. Its hard to say.