Hillhouse charges $100/hr. He has a waiting list for lessons at each of his "local" weekly sites. He pays rent for the lane he uses. It is his full time job. He is never home evenings or weekends. On the weekends, pretty much every weekend, he is flying some where across the country, sometimes internationally, to do a clinic or monthly lessons. He can get the price he is asking because he has played at the highest men's level. Both Men's Team USA, and professional internationally. His price is worth it to our family because he relates and interacts with our daughter in such a manner that she refuses to consider going elsewhere.
Everyone values different things differently. A person who pays $1000 for a golf club, in my opinion, has lost his mind. I hate golf. However, that person who loves golf might feel it is worth every penny.