Tile installation estimate in line with market?

I'm undertaking the first of three bathroom remodels in San Francisco, CA. All will require tile and stonework, and although this is the most simple of the three, I'm looking for someone we could continue to work with. However, the bids are coming in apples and oranges, and I'm at a loss as to how to compare these.
There are two pieces to this job: to demo existing tile and linoleum in a 66 sq foot 0.5 bath/laundry room and replace with 8x8 African slate tile, and to cover a 48 sq foot hearth with the same tile. The hearth is currently covered with brick, and we've been told it will make a suitable base for the tile. We'd like to raise the floor of the hearth approx. 2", which will require that the front lip is edged with cut slate tiles, we'd prefer a mitred edge to a bullnose.
Our tile has been purchased, grout must be selected. Our preferred contractor (great personal reference) gave us an initial estimate for $1,000 for tile setting only. However, the bid came back at 3x that amount once demo and everything else was figured in. The other bid (also with a personal reference) is for tile setting only, we would have to arrange for demo through another contractor (not yet identified), and do the finishing work ourselves.
The first contractor proposes: -Remove and reinstall washer & dryer: $75 -Deliver tile (and carry up two flights of stairs): $125 -Demo and install tile in bathroom/laundry room: $875 -Set tile on hearth, including edging work and reinstallation of wood molding: $1,600
This seems high given installation cost estimates that range $3-7/sq foot, but I'd appreciate your insight regarding the complexity of this job.
-Amalia
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tile jobs can run $30-40 sqft, or even higher, when you add in the demo, cleanup, and reinstallation of special things.
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SF and you think there is ANYTHING that is inexpensive in that town... Ya right..
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The price doesn't at all sound unreasonable. Factoring in necessary installation materials (wonderboard, thinset, trowels, tilesaw, etc. Demolition (I'm sure some drywall will need replaced/patched where existing tile was removed) and the cost of disposal of the removed materials. Replacement of any trims, and possibly a helper. -dave (who does tile jobs on occasion)

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This is very helpful. Thank you!
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