Inflation must have went up recently.

I have always used a similiar "doubling" scale.
$125 +/-$50 = Basic entry level beginners cue.
250 +/-100 = Good solid hitting cue with minimal design, details or materials. Range I suggest to beginners wanting a cue for awhile.
500 +/-250 = Good solid hitting cue, with more design, details, better materials.
1000 +/-500 = Very nice cue, could be custom designed to the buyers specs.
2000+ = Custom cue, probably one off with excellent materials and craftsmenship.
4000 and up = Most likely a collectors cue.
Most people can play well with a house cue. I look at the 250-500 range for the best bang for the buck. You may not get a unique design or high end materials, but the cue should play and feel good enough to justify this amount paid. Once you get over 500, you are getting more into the materials, design and quality aspects.
Just my approach
ez