Given that the dollar was worth a lot more then, that's almost fair market. :-) There's nothing wrong with that - all I'm saying is this is what the entire market has gotten to, not just a newbie trying to build a portfolio or cut a break.
To put my comments in "real numbers," I'm talking about bids for website design, coding a design to a full site, install a wordpress blog and configure my template to it, install a cms and build my web site, custom coded solutions - there are more but all of these I've seen (and co-bid on) a whole list of opening bids of $50 - $100. Much of the competing market is from India, Pakistan, Philippines, Africa, Russia, but a lot of it - IMO almost half - is right here in the U.S. and Canada.
As a freelancing programmer or coder, even with years of skills behind you, the market is not just tough, it's brutal. "Web Gurus" have output whole ebooks on how to work providers to the last dime. The one thing that allowed me to survive was comprehensive proposals that focused on the client's problem, not my skills or portfolio. example [webmasterworld.com]