Seems to me in San Diego the norm is 400 to 500. Just had a lady ask for 1500 to which I replied with 🤣🤣🤣
We’ve had the 1k discussion on this board in the past and the prices, sites and menus have gotten worse. Last week I had a pot ask for 3k up front before an M&G. On the SA site you run the risk of being booted off for saying the wrong thing. On the Hal’s menu there is no intimacy. Geez. I had one Latina (a little over weight) offer $350. Also, she was very eager. So, I’m thinking the providers will be a better value, more fun and less headache provided I do my homework. But I’ve been away from providers so my references are old.
I was tempted to title this: "SB's do not think." :p
Anyway, your understanding that $1k in sugar could equal 2 - 3 pro bookings is spot on. However, no SB, or at least no true civilian SB is thinking about hooker rates in her area. In addition, SB's don't consider their asks for sugar from a competitive point of view. They see this as a very personal issue: "How much do --- I --- want to sleep with some old guy?" and not "How much will this guy pay for sex?"
Trying to make her see the competitive landscape in your attempt to negotiate will almost always lead to the argument of her "worth." Once you get to that "Hey, Mr TtCttc2, I am WORTH at least $1k!" position you are lost. You will never be able to convince her she is not worth whatever she asks. Every woman's "worth" is "priceless." Just ask her. :p
Instead, you can counter the outrageous asks by sticking with YOUR budget. "Wow, I'd love to give you that much help. Unfortunately, my buget is closer to $300 per date. Do you think we can make that work?" You sidestep (actually you passively validate!) her worth and center the negotiation around your budget. She may come back with a better offer. Or she do you a favor and bail, saving you time to move on.
Finally, to answer your last question: Yes, someone is paying these stupid-high rates - sadly. But that should not change your negotiating tactics.
Life is good
The Cat 
I'm not sure that many are actually paying these rates. It's easy for a chick to dip her toes with high asks, but many will never (or very rarely) actually close the deal. I see the same faces month after month on some of these services and I doubt most of them are pros.
And are conditioned to ask for 750-1000
In SoCal I have seen it all too often
I paid 750 for a date w a model like - was much disappointed
My current regular is a 400ppm 21y old college cutie , tall slim and tight in all the right places . But it took a hell off a lot of work - and I probably cannot go through w it again
My Other benchwarmers are 500 and 600 ppm. But have to say once you go past 600, escorts are much better value , regardless of where in US You are
My number one SB is a beautiful, tall slim 25yo who I see every 2 weeks in the RV. She shows up on time every time, fucks my brains out with great enthusiasm and multiple O's and is fun to snuggle and talk to. I give her 200 per meet. My #2 is a luscious 24yo who is amazingly sexual, loves anal and also gets 200 per visit. She's driving 50 miles tomorrow to cum see me, can't wait. SB #3 is one who was gone for 6 months but we started up again a few days ago like we'd never been apart. She's more of a voluptuous girl, huge breasts, loves to fuck and suck. I give her, you guessed it, 200 per visit. Sure, I've encountered asks that were much higher. And visiting big cities I've paid more. But I offer 200 and generally find girls who appreciate that amount, who genuinely like me, and who love sex. Putting myself in their position, how else are they going to supplement their income and have fun doing it? If they are in college, as many of my SBs have been, a part time minimum wage job that sucks and takes up 20 hours a week of their time, not counting commuting and dressing for the job, is a poor alternative to even one $200 sugar date per week, cash in their pocket. And it sure is more fun! If you can find some SBs who look at it that way you can have all the fine young pussy you want without paying ridiculous prices.