If he was going to lube the parts you suggested i would go elsewhere, there are an extremely small number of parts on some specific machines that need lubrication. However, it may also just be a figure of speech.
I think its very cheap. As others mentioned, picking up takes time. Having the knoweldge to do the repairs (no matter how basic) is worth something, plus if they have some expereince, they may well pick up other issues that could be adressed as preventative maintenance. If he is replacing all rubbers and giving the machine a proper clean, there are a few hours involved in pulling apart, plus cost of rubbers and bulbs and cleaning materials (minimal, but it all adds up). So once you factor in fuel and time for pickup, time and parts and expertise for the repair/clean, he is probably getting $20-$30/hour. Good rates for cash and a hobby, but it is also a reasonably unique skill/knowledge base.
Compare it to a car detail. Many people will pay $200-$300 for a care detail, which does not involve the detailer picking the car up and only takes a couple of hours. There is no specific knowledge needed for a car detail, and they won't fix a minor issue on your car. A service tech for a pinball will not only clean and ensure its working well (hopefully), but make sure that any errors are rectified and do preventative maintenance as well.
