Depending how complicated your formatting needs to be, you might be satisfied with the free book conversion through Draft2Digital. I use them for everything I publish.
They're in a beta right now trying to improve the conversion/formatting tools, so even if you end up going with someone else, just trying out their service could help make it better. You can sign up for the beta here.
Formatting
Everything Indie offers 3 types of digital formatting (Kindle, PubIt and Smashwords) and print interior formatting. Prices vary by word count and number of formats being purchased. A table is below. Please note that projects including images may incur an additional charge, discussed with you prior to Everything Indie working on the project.
Digital x1
This supplies to one digital format of your choice.
< 20,000 words: $19.95
~20,001 - 40,000 words: $29.95
~40,001 - 80,000 words: $42.95
Every additional 20,000 words is +$10.00
Digital x2
This supplies to two digital formats of your choice.
< 20,000 words: $29.95
~20,001 - 40,000 words: $44.95
~40,001 - 80,000 words: $59.95
Every additional 20,000 words is +$10.00
Digital bundle
This supplies to all three digital formats listed above.
< 20,000 words: $39.95
~20,001 - 35,000 words: $59.95
~40,001 - 80,000 words: $79.95
Every additional 20,000 words is +$10.00
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