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"Audio guys around here are typically $750-$1000"
I'm skeptical of that claim.
... I think once again, we have such an insane surplus of people and gear in LA, everything is lower... In LA, of course, it's a free for all and there plenty of camera people who own a RED or Arri and are upside down in it or have to make lease payments and end up renting the camera out with their time as camera/op/DP for $500.00 a day, which is insane for what can be a $100k camera package.
As an aside - in the music industry, LA is also known for its pay-to-play schemes. A band that could conceivably make a few hundred per gig in the Midwest has to guarantee a certain gate for a night club promoter. The promoter would then make a "guest list", where each performer has to deliver its share or forfeit a deposit. A club goer/fan would be contacted prior to a show with a mailer/coupon that s/he'd be able to redeem for a discount club entry. Given that the conversion rates of list members to the actual audience are fairly low, a band has to have well over a hundred names in its system to sell 20-30 tickets per show. Or they have to pay up themselves. It's the numbers game but the promoters and the club owners have to make a living too.
I know, being a musician is a much tougher gig than what we do. Pay to play is insane, it's hard to believe it has come to this but I've heard about what you speak of as very "matter of fact".