Fair price for SEO?

Depends on whether or not you're going to automate the process. With tools like IBP you can start the process off, spending 3-4 hours planning the submissions, etc, and then just let it run. The reports you give to the customer make it look like you've done far more than you actually have, and they feel that the charge of $2k-$3k is justified.

It depends on the service you provide. I charge upwards of 10K a week for top of the line submissions

and sometimes just 3-5K a month for link promotion