It's a shame the downward pressures that have made "struggling to get by" the middle class norm. The whole point of the thriving middle class (in the US at least) was that, with a willingness to work, you could live comfortably, with a house and two cars and 2 kids.
This isn't meant to be insulting or directed at you - it's just a new definition of middle class, that the struggle builds character or your struggling is an indicator of your value or lack of hard work, that I find almost infuriating.
End rant, I suppose.
Of course there are plenty of people for who this is reasonable, but please don't be so ignorant of what "middle class" means.
[1] http://visual.ly/how-average-american-family-spends-money
And some people are a bit more generous than that. Or only have 1-2 friends that they go "all out" for. Small $20-40 gifts for a few friends/coworkers and 1-2 $200-300 gifts for the close friends lines up with your estimate just fine. Especially since they said could afford to and not will do so.
I'm middle class and spent three times the average you cited because I budgeted it accordingly for the last year. This year was atypical, but was very much possible.
You don't need to be upper middle class to afford a one off large purchase. Maybe if you're struggling in the lower ends of the working class - it could be difficult. I don't see where you're finding fault with their statement... if anything you're supporting it.
When I learned that the original business had been rebuilt and re-established, I thought I'd put together an extra special surprise for her birthday this year.
What was special about this birthday present was it seemed like an impossible feat, on first impression, and she had no idea how I did it. That's why what Magic did was so magical. Imagine having for your birthday dinner food from your favorite restaurant in the whole wide world, from a restaurant 2000 miles away, that you thought had burned down! Entirely unexpected and quite delicious!
I don't know many lower-middle class people who'd buy what will likely end up being just shy of a thousand dollar present for their friends.
Shipping rates are significantly reduced if you do high volume - if Magic does a lot of shipping (and it sounds like they would, with the services they offer), they could probably negotiate a far lower rate than you could.