What does SEO entail on a website? Would the price include explaining to me what all the numbers mean on the google analytics? Would that include suggestions on better marketing or solutions to how mite site would perform better?
Bruce Clay, who first coined the phrase "Search Engine Optimization" likes to describe SEO as a 3-legged stool:
1) On-page (or On-Site) factors
2) Off-Site factors
3) Technical factors
With an F20 site like yours we've taken care of #3 - fast server, canonical URL tags, good base site architecture (which you can further adapt), etc.
#1 is about your content, page structure and internal linking. This can also include conversion optimization (making it more likely that visitors become customers)
#2 is about linking, social media, any factors that affect your site but are not directly on your site.
Interesting note: It's a commonly held truth that your final SEO score is based 30% on your site (#1 & #3) and 70% on #2. Further, there is a finite "score" you can get for that 30% - there is a cap on perfection for on-page elements. However, there is no possible cap on your off-site score, since you can always get more links, more Likes, more Tweets, more +1s, etc. Also, the value of those items can increase as well!
Needless to say, we devote a lot of our efforts to the off-site factors, but not to the exclusion of important on-site items like title tags, URLs and microformatted local business info.
The level of communication and explanation is heavily impacted by the budget. Out of necessity, all of our time on a project - strategy, implementation, reporting and communication - is billable hours. There are a lot of companies offering cheap, ineffective SEO options for $150 / month, but you'll never speak to anyone who knows anything.
On the other hand, spend $10k+ / month and you'll have a dedicated account rep.
I find there are strong correlations between SEO campaigns and wedding work in a flower shop. You have clients with different budgets and different levels of neediness. Sometimes the stars align and you get a bride with a big budget who is also level-headed and low maintenance. Other times you'll get a $200 wedding booked 6 months out and spend 2 hours a week for 6 months dealing with emails, phone calls, questions and revisions. Thankfully, most will fall somewhere in the middle.