When you subract the materials, then add in stripping and rust repair I don't think it's real far out of line... Hopefully he has a cushion built in that price to cover the "surprises" that will probably show up on the car when the stripping starts!!! I would make sure this includes quality paint under the hood, the inside of the trunk lid, and the door jambs.... As others mentioned, make sure you are both talking the same paint job before any work starts.....