So the breeder you got your dog from wants a pup, and so does the male dogs owner? If your dog were to only have one, I'd give it to your dogs breeder and pay the other dogs owner for his services. I'd also research if it makes a difference to the price if the mating is successful or not. There may not be a difference but it seems pretty steep to me to pay her the value of a puppy. She just needs to rock up and let her dog have a good time, you need to look after a pregnant dog and then her puppies - it's not cheap.

Honestly, if you'd planned on keeping a puppy too, I'd put yourself and your dogs breeder before the other.