As with any 'service' it's quite usual for photographers to charge for time as well as materials. But the prices quoted seem a bit steep, especially if the photographer isn't 'known', even if only locally. For instance, there's a studio here in Leicester that has a long history of creating the most stunning photos and people will pay high prices for his work.
What bothers me is that your mate was offered the shoot in return for being able to use his shots as publicity. Now, whether or not he pays for the shoot, those images actually belong to the photographer to use as they wish (as long as it's legal in publishing terms, ie not pornographic or libellous or anything), so your mate has little say in this, legally. As Ankou has said, this sounds like a sort of legal con, where you get the shoot time free but have to pay massive prices for the prints.
Suggest your mate offers him/herself as model for the local college's photographic students. Much cheaper and done under their tutors' guidance, usually. They learn, you get prints (if you ask nicely and offer to pay) and you don't end up paying over the odds.