Nice in theory, but not really based in reality.
As others have stated, pixal artwork is worthless. It needs to be converted to vector artwork. Adobe Illustator is the industry standard. It costs about $600.
Then there is the time. To convert a logo from pixal to vector will take 2-6 hours for someone with a lot of experience with the program. This comes from first-hand experience as I recreated Cinelli, Frejus and Gloria logos. I have over 20 years experience using Illustrator. What's shop rate at your LBS? $50-$60 /hour? Granted a decal maker can reuse the artwork, but there is no guarantee you won't be his only customer.
Next is color. Color is an SOB. Is the color in the photograph correct? Is the monitor showing the correct color in the photograph? PMS (Pantone matching system) is the industry standard. Does Pantone have an exact match? Then comes the hard part. Even with a specified PMS color, every printer will print them different. Even 2 different printers that are the same model are likely to print different colors. Then there are usually a few colors a printer won't print well. The chroma is off in the red for example. Then there are metallics. You have to print out multiple times to get the color correct. And now you need a printer to do this all. That isn't a cheap printer. The inks aren't cheap.
So $50 to get 1 page of decals is pretty much an excellent deal. And I am fairly certain anyone charging you $50 is not getting rich.
I don't have near the experience of anyone on here in regards to bicycles nor in decal printing specifically for bicycles but the above is a BRIEF overview of the work needed to be done for proper graphic design. Recreating image files (.jpg, .bmp, .png) into a vector based format is incredibly time-consuming even when you're good at it. Those prices are ****** over on velocals. Good work, too, from what I can see.