Finally, they asked me how much I thought it was worth. I told them that I'd pay $500.
Yikes! You are either desperate, a liar, or maybe just really rich ;-)
I really don't understand your argument. You are asserting that:
A) He's desperate to pay $500 to sign up with an agency that wanted $3500 originally? I'd say paying $3500 may be desperate. $500 is just good negotiating. Besides - he never went into detail regarding what the sevice provided. It could easily be worth $500 if they sponsor dinners / meetings / outings, etc.
B) A liar? What is so hard to believe about him *telling* the agency he thought they were worth / that he would pay $500
C) Rich? $500 is not pocket change, but neither [as the sales pitch goes] is it an excessive amount to meet a future wife / husband.
All that said, I don't think *I* would ever pay that much for something so contrived as one of these matchmaking agencies. I am forced to conclude, however, that there are some people for whom this is the best option. That number is probably a very small one though...