I've read all the responses and would like to add my own insight. I live in the Chicago area, so I have a lot of options available to me. I've also been involved in dancing for almost 20 years.
The cost of lessons isn't just about price. Anyone can teach dancing; one does not necessarily need credentials. However, just because someone is a teacher or a good dance and/or competitor doesn't mean s/he's a quality teacher.
I took my first dance lessons in a community college community education course. It was great, and inexpensive. At that time, all I was looking for was a basic knowledge of how to dance.
I met people that I saw at other local dance events such as dance clubs (membership clubs) or dance spots. I took lessons in those genres too, and my dance knowledge began to grow.
I took lots of group lessons and even worked at country/western dance competitions. When attending those dance festivals, I also took workshops and lessons.
Most of this was done without a partner, and I never competed. Then I found that it was becoming harder and harder to find a partner to dance with, so I began to lose interest in paying money for lessons and events because I was standing around too much.
Life intervened and I didn't have time to dance, but I missed it. When Dancing with the Stars started, I made a resolution to go back to dancing when I finished graduate school because I missed.
I finished school in December, and signed up for lessons with a new national franchise school. The cost is more than I have paid in the past, but I have to say, the quality of instruction is much better too.
The instructor I'm working with teaches me not just moves, but technique, things like balance, posture, how to follow, what the signals are, etc. He also has helped me gain confidence by his encouraging words and actions.
I'm sure that no matter where one takes lessons, the important thing is the instructor. A good instructor is worth paying for, and how much is too much and what makes an instructor good is an individual decision.
In addition to the private lessons, I participate in optional group lessons, and dance parties. Being that I don't have a partner, group lessons and dance parties give me the opportunity to meet other people, both male and female, who are interested in dancing.
I also found that I am interested in competing, not so much winning, but for the opportunity to show off and feel special. My instructor didn't mention this to me, I asked about it. I know that's expensive, but hobbies do cost money. I'd much rather invest my money in dancing than a gym.
That's my story and I'm sticking to it!!