Maine Nesties
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We are selling our futon and looking into getting a chair sleeper. One that pulls out like a sofa. Anyone know where we can get one for around $300 or so? People rarely sleep over so we don't need anything expensive; but we are rearranging the guest room to make it a home office. The futon takes up too much room so it has to go.
If you are interested in the futon, PM me for details 
Re: Chair Sleepers
IKEA has a couple of comtemporary style options. Of course, you'd have to drive to MA to get them.
http://www.ikea.com/us/en/catalog/categories/departments/living_room/16296/
Walmart has an inexpensive option that's more like a folded up cushion (no metal frame).
http://www.walmart.com/ip/Sleeper-Chair-Rich-Black/13995967?sourceid=1500000000000003260370&ci_src=14110944&ci_sku=13995967
I think the traditional styled sleeper chairs (that operates like a sofa bed) are more than your target price. This one from JCPenney is nice but it's $600.
http://www4.jcpenney.com/jcp/X6.aspx?GrpTyp=PRD&ItemID=155fb30&DeptID=70752&CatID=70827&SO=0&SelDim=4294957900%7e+586%7e885&CatSel=4294953307%7cchairs+%2b+recliners&NOffset=0&Ne=4294957900+5+586+1031+877+1274+838+580+8+18+904+949+833&x5view=1&N=4294953307+4294945746&Nao=0&PSO=0&CmCatId=EXTERNAL|70827