If you compare it to real life, of course $500 would be well above the pricing for an average outfit (and well, for that hobo skin in which case $500 would be outrageous :P). But like the majority of the things in the server (and most other online multiplayer games), simply due to the way everything adds up pricing will have a lot of variation to real life costs.
But in an overall sense it should more or less match the different prices across the server.