There are a few things to expect when purchasing a guitar. First you should expect to get what you pay for. What this means is that if you want to buy a cheap guitar for your child to learn on then it is definitely going to sound cheap. A $50-$75 guitar is going to sound like its price. Cheap guitars will not hold their tune well and will be more frustrating than anything.
Something else to expect when buying an electric guitar is the ‘set up’. This means there is more to buying an electric guitar than buying an acoustic guitar. With electric guitars you must purchase more accessories. These accessories are not optional. You must buy an amp, guitar cords, and a carrying case as well as a tuner and a strap. Where it is possible to purchase an acoustic guitar for around $200 and be done, chances are that kind of money will only get you started with an electric guitar.
Just as an example, the afore mentioned Fender Stratocaster and the Gibson Les Paul guitars will cost you anywhere from $500 to $1400, and that is just the guitar. Expect to pay $1200-$1800 for a nice new set-up. If you are not interested in buying new gear you can always find good deals on Craigslist and EBay.