The time it took to design those three pages may have been worth $350 but that site would not have converted well, so I'd say it wasn't worth the price.
The bottom line is that I'm sure Lady Mischief could have done better with more direction and should have been given the chance to rework the pages until the client was happy (within reason of course, given the low price).
I'd also like to point out that a designer can only do so much with crappy photos like those anyway. If those photos had been used in a killer design it still would have sucked and that wouldn't have been the designer's fault.
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