Definitely go with what someone else said and ask him what his budget is per month... Then tell him you will work out a business plan and and get back with him. Keep in mind that he can probably go a few hundred more per month on his budget. With that in mind, make him a business plan for his budget and then make him a slightly better plan for a few hundred more. If he doesn't know what is really going on and has never paid for SEO service before, hit him at 1,400.00 a month and tell him that is your basic price. If he says that is over his budget, then he can come up with a number because he is know in the ballpark figure of what a service like this costs.
Once you know what his budget is, pay someone like me 80% of it and I'll manage the entire project which will be out sourced to people on BHW that I've dealt with personally and know that they do quality work. Don't tell him once he hits number 1 for a particular keyword that he has a good chance of staying there, you want him to keep paying you every month to keep him at #1, which you will just keep 20% and pay 80% for the management fee... You could definitely do this on your own though for a great experience but I'm not giving up any out source references. You'd have to get the bad with the good and then keep working with the good. Don't go with xrumer blasts only, maybe one good one to start but you want to pay for quality blog link wheels which will last a lot longer than xrumer blasts and look better in the long run.
For the phone call, he doesn't need to know and probably doesn't want to know the technical details. One thing you can do is get Market Samurai and figure out the best local keywords like; Chicago Dentist, Chicago Dental Work, Dentist in Chicago, ect... and let him know that these are the most searched keywords and these are the ones that you will focus on and get him to #1 for each and every one. Tell him it takes about 3 months to get to #1 depending on the competition, this way you have enough time to get your ducks in a row because it shouldn't take that long for someone that has done it before.
You can simply send him a screenshot of a Market Samurai graph each month so he can see the progress of of each keyword.
Now if he doesn't have a web site, tell him that there is a 1500.00+ price tag on you creating the site and then out source that as well. Also include in the hosting price and how much per month that will cost him.
My free extended helping hand... If you want some reference pages to send him to, I have a brand new one literally bought the domain and built the site less than 2 weeks ago (which if the whois is updated, you can show him how new the site is) that is at #2 for 2 keywords (Broad match) and at #1 for one of those keywords (Phrase match). You can give him my email address too and I'll put in a good word.