Never Gets Old: Value for the Price

I know this questions gets crushed through and through, but Creative Cow is the place to go for professional advice and I'm not one to pass up such an opportunity.

I put together a proposal for a potential client for a two minute promotional/how-to video for a new product he wants to sell commercially. I am in a medium-sized market, a fair amount of competition. The proposal I gave him came to 1k/minute. This includes everything - HD acquisition (half day shoot, quality production value, dolly, grips), on to full editing (narration lined up, music, text/graphics/basic compositing/effects) and export out to whatever format he needs and DVD w/label.

I'm hanging my own shingle slowly. I own all the necessary equipment, have been doing this for some time now meanwhile thankfully with another job to pay the bills this day and age. Am I out of line with these prices for a commercial business proposal? I've read over Creative Cow and the other questions that fall into my same situation, but I can't discern if those prices are an all-in-one price of shooting and editing or just one or the other. I'm not saying my situation is anymore unique than others, but I couldn't tell if the $400-$700/minute example estimate incorporates the actual shoot or if the footage was handed off to the editor so that 400-700 is editing only, or if that /minute estimate excludes or includes narration/music costs/etc, or how those costs are broken down.

The client stated he thought it too high. I'm not surprised, and understand there is sticker shock when someone hasn't ever seen these numbers for such things. I want to make us both happy - him walking away with a high quality end product, me walking away feeling like I didn't do it for charity. The client will be calling me back so we can talk further about price, I want to have good knowledge going in.

I appreciate transparency for all sides. I don't want him feeling like he's paying through the nose, and a lot of that comes from convincing him the quality is there for the price, which I obviously believe is that fact. Which begs the question - is the price right? Or is my pricing a bit heavenward and I need to come back down to earth?

This community is great. I come here for insightful and informative posts, which in this day and age I feel is in the great minority. It makes me feel good knowing internet locales like this exist.

Thank You in Advance