Sare check some of the samples and work in this thread and the people who responded - most of them wanted about $250 or so for a top-notch logo:
http://www.gofuckyourself.com/showthread.p...light=geek+logo
Maybe with your friend you could tell him "we were expecting you to come back to us with some rough drafts, not repetition of what we said to you. When we talked in person we communicated what was on this paper; we already know this and don't need it written down. If your business isn't taking off, perhaps one of the things you should do is look at putting more rough drafts in front of people and get them excited about the process" yadda yadda.
It could be that he's just *too* stuck in big corporate thinking and needs someone to show him that when you're dealing with face-to-face people, it's the results, not the process, that gets the deals made.
Then again maybe he's just trying to fuck you over and milk the hours but if he's a friend I kinda doubt it. Sounds more like a case of not really knowing *how* to be out in the business world without having a big corporation with its paper trail bullshit slowing things down.