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Yes, I also think that $199 is probably a bit low.

I don’t do too many websites for businesses these days (mainly just any I pick up through word of mouth), but I usually charge around $500 for a simple, 5 page WP based site. I usually find that businesses are very happy with this price, expecting it would be quite a lot higher.

Another thing to keep in mind, is you often find that the customers who want to pay the least are a lot more hassle & more demanding than those that are happy to pay more. By doing sites for $199, you’ll probably end up attracting more of those customers that expect the world, but don’t want to pay much!