You say you get along great personally but it sure doesn't sound like it. I printed a newsletter recently as a 1-time project and I wanted it in color. Wow was I surprised at how much the cost added up. I looked into having it printed by kinko's or something and the cost for color was ridiculous.

Cookiebaker has great advice. I'm sure you know what you need to do to get her to stop walking all over you - don't back down.

(PS this is the type of do as I say not as I do advice, good luck!)