This is a great problem, that you simplified a lot, but it's still expensive!
No, it's really not. It's about 50% more than you'd pay for a shitty, cheap frame, and half the cost of a custom frame. The OP may not have found product-market fit yet (I'd argue this should be targeted squarely at the pro and semi-pro markets, instead of consumers), but the product itself looks fantastic and the pricing is terrific.
My inner consumer doesn't want to pay more for a frame than I did for what's going in the frame. It makes me angry. It feels wrong. That's the benchmark I'm evaluating against.
There will definitely be a big difference in desires and perception between the pro/semi-pro and consumer markets. What makes a shitty frame to you anyway (this is an earnest question)? I've never had a wooden frame disappoint me.
Personally I'd rather have the cheapest possible wooden frames that don't fall apart so that I can frame as much of the art I have lying around. To me a frame should be a cheap purchase that gets out of the way of the art it's highlighting.