Is this a ridiculous estimate for SEO work?

I have a website I spent a good penny on. It’s a business/web application. Before I launch I asked a web firm to estimate some costs of some SEO work. Though I’m no expert, I understand the work involved on a basic level. The firm has proposed that they’d do the following: 1) Create an “SEO” page for my site (which I assume is a page with relevant keywords and searchable terms that make it easier for a search engine to catch 2)Create a blog and put it on my site because right now the site is just a web application, a good one, but there is little content other than it. 3) Set up the SEO 4) maintain the SEO

His estimates:

1) $2300 for the SEO page
2) $2500 to set up the blog and set up the SEO
3) $1000 per month to keep things going.

prices above include his fee and all costs.

PPC advertising is a nonfactor here. He will not be doing this.

Is this ridiculous?