I would suggest you should be looking to double or even triple that figure as an average starting price for a decent identity, though it depends on the skill and experience of the designer, the nature of your business, and ultimately how long you spend getting the designer to refine the design until you're happy with it.
It's worth paying extra for a decent job first-time round, otherwise you may find you have to pay extra a second time.
I work for a graphic design company and we would be happy to help you with your logo.
I will PM you our main details so you can get a good idea of how much it will cost and also our standard to see if your happy with our work.
Hi, if you haven't already had this done, then please have a look at my website where there are samples of my work polkadot mouse and if you think that I may be able to help you please get in touch and we will discuss your requirements. email@example.com
As mentioned above, the internet is all about branding. Investing in your identity from the very start will pay for itself over and over again. That said, you may find a very talented graphic design student who can achieve a similar quality for a fractional cost!