Hi,
Being an Arthur Murray student myself, and having been going to their showcases, I think you should attend. When I went to the showcase, I didn't bother with purchasing extra classes, but the fact that your instructor focuses on the dance or dances that you are going to perform really improves your dancing. Also, I don't think that it's all about sales, because I know that renting the ballroom that they have their showcase in for 1 day costs them a lot of money (around 35K). Overall, I think it's a really good experience.

Actually, the AM events have categories for everyone, including newcomers. The best way to improve your dancing is through events like these. No one can say for sure what the motivation behind your instructor is, but if you trust him (which is a question you should have asked before committing to his instruction), then you should go.

Before comitting to his instruction?

that would make him a complete stranger.

trust a complete stranger?

I am currently taking lessons at an AM studio and have a problem with the constant up selling. Whenever a showcase event comes along not only do they want me to participate but do all the dances sometimes twice, once at one level then at another, at $20 per dance this would run $400, just for the dances alone, add in the $185 for the dinner/dance ticket and it going to be over $600. Where does all this money go? It doesn't seem worth it. Is having my dancing assessed by yet another person really worth that extra cost? Shouldn't the studio already be doing that?
Whenever these events come along it makes me wonder whether it is what is best for my dancing or the studio is just trying to make money. It also makes me question whether my instructor has my best interests or the studio's at heart which leaves a bad taste for the dance experience at AM?

If you are really that skeptical and conspiracy theory minded then get out of the studiio. There are several of these that come up year after year each year and if this raises such suspicions in your mind then it is going to continue to get worse the longer you stay there, which will poison your veiw of your instructors, will ruin your experience of being there, and will take the joy out of your instructor trying to teach you.
Now if this is just your initial reaction to not having the money to do it, thats fine but instead of getting an attitude about it just let them know you can't do it. Or if you just don't like the idea of competeing then let them know you just would rather not participate.
But if you do have the money and don't mind competeing then it would be a good idea to get involved. Its a chance to go out and do something different and have some fun doing it (and unfortunately its going to cost a few bucks to do it).

I am a new student and I am offered to do a demonstration with a very famous professional dancer. he is charging 1,000 for a one-dance show. Is this an appropriately prized offer?

$1000 seems very unreasonable to me. Is this just to dance in a show with the famous pro, or does this include some sort of lesson package?

Just a show. Private lessons are extra. What is the norm (price)? Or is there any?

Well, it seems like the showcases others have described on this site are more expensive than at my studio. But showcases are only $20 per dance. Same with medal balls. They are just at the studio, not off site, and It seems like showcases at my studio are used for advertising to the public.

i am an instructor myself but i teach independently. a professional response to your concern is tduhat no matter where toy go as far a studio, it will be expensive to prepare for both a showcase and/ or a competition.we ( instructors) put un lots of work mentally and physically to personalize everything we do dance related for you.if you research the ballroom industry, it costs a considerable amount of money to participate in these events. and of course it is a business so they are going to charge. you need to put more work into a showcase than regular social dancing. professional dancers train 6 hours a day 5 days a week affidavits why they look so good. your lessons are probably about 45 mins which doesn't exactly give you all the time to polish. so yes 10 or lessons may be needed.