No viewpoint on how you should charge, I just wanted to say how wonderful it is you are going to do this for him. The Dad realizes how valuable those memories are, good that he isn't waiting too long to recapture it.
I would think there are more people in similiar situations after a divorce.
I have never seen a pre-made kit for under $10 and after buying it, the buyer would have to do all the work to attach pics, etc. so $2 is a very very generous price and he is getting a bargain!