I would bet it has a lot to do with their marketing and business skills.
The shooters of $500 shoot and burn jobs aren't the problem either in my mind, the $500 buyers are, that's all they are willing to spend because that's all they have or that's all it's worth to them.
$500 for 3-4 hours shooting and no processing is a reasonable day rate for a new shooter actually. $125/hr.

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