exactly, you get what you pay for. There are some people out in the bay charging chump change for whatever reasons, but you will see it in the quality and the storyboarding, however you may come across a few gems, it all depends. The bay is notorious for watering down products and having people offering the same services for dirt cheap, which in turn confuses artists (this can go for production, studio prices, photography, etc..) Since video production is one of the most rising products being offered for artists right now, just as photography hit a turn about 5 years ago with the more availability of DSLR's to the prosumer market, it still does not mean you are always hiring a professional that is qualified for the position. You will come across your occassional hustler who knows nothing about anything, or a cousin who got a cam for a christmas present and all of a sudden "directs", but in the end, you will see it in the quality, and there are benefits in hiring bigger production companies because of access into the industry and your video getting more out there.
I can tell you off top, major record labels are paying anywhere from 40K and up for videos, not as much as they would have been 5-10 years ago, because of the economy and the limiting of artist's budgets, but the prices are up there, because the productions are higher, you have to always think about that, no matter what your budget. If you want something extravagant, or locations that need permits or airfare, or major lighting, 2d/3d effects, extras (casting), etc... the list goes on, then in turn your budget must go up. The end rate does not all go to the director, there are many things to keep in mind and consider.
I would recommend for a new artist with a limited budget to invest in more viable things than just a video, but if you do have the budget i would suggest to get the most of your money but also keep in mind the quality. Don't cut corners, it will show. Quality will take you far, it could take you as far as network TV, and much more, there are also music video awards, and you might get alot more fans than expected because of who the director is or how great the video is.
There has been a couple of directors and people in the industry that have come out of the Bay Area and made names for themselves with great quality videos such as Taj & Colin Tilley, and im sure many more.. Unfortunately there isn't much growth in this region financially or in the industry for aspiring video directors, cinematographers, etc.. as i am one myself, and so is my partner Mike Ho. However, the Bay Area does have the benefit of having hungy and aspiring talented people where our quality of work speaks for itself and we have artists coming from different regions to get work here.
All of that said, i know in general, most "good" videos HERE in the bay can range anywhere from $3k to $10-$15k, and that is more than fair, the time & energy put into a video is a lot. Imagine sometimes 2-3 days, 12hours a day plus 1-2 weeks editing, as well as paying your crew, lighting, rentals, etc.. The higher rates/budgets are because of the productions involved. You want something monumental, you have to come out of pocket for that.
Some companies right now offering great videos i feel are oneSHOTmedia (plug lol), Prime Zero (Ben/Money Tree), Tektonik, Gino Rocks, and im sure a couple other folks.
I hope this helps.. Menace, hit me up, lets talk
Royalty - "GIRL GIRL"
Scoot (Dem Hoodstarz) - "Grimey"