I think it depends on where you are. If you're in a major metropolitan area, like New York or Los Angeles, where the rent on the dojang is astronomical, $500 might be reasonable. The school where I train in Chicago, which isn't cheap, charges $50 per test up to 2nd gup, $150 for 1st gup (which is considered deputy black belt) and another $200 for the 1st degree black belt, which includes a heavy-weight custom embroidered uniform and registration in the various accrediting organizations. It seems reasonable to me for this market.