Key words "When I was". I agree that in my opinion 250 is overpriced as well. But as far as the area is concerned how much is the competition?
Some of these "local modders" know it will cost to ship it out and have it done so they rake you over the coals with high prices because if you are unable to do it yourself you are at their mercy. I have found in research most "console modders" make claims to ownership of the software as well. And thus are charging for their software to be installed. Honestly if I was this guy (OP) I would practice with my own console and start offering a competitive service to run this over charging guy out of business. Now that being said if this guy is including stuff that is normally charged for (some modded games and mod menus and xbl stealth) It really isn't all that much. Everyone is quick to assume this guy is a ripoff artist (which you are probably correct) without finding out what all this guy is giving to the customer. (which probably isn't much at all)
@ the OP there are many of us here that have modded console and have modded many consoles. Buy the parts and tools you need and attempt it yourself. Most of us here can E-hold your hand through the process. And there are more than enough youtube vids and pics floating around to ensure you don't screw up. Heck, most of the fun in console modding is actually modding the console itself.