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I am not sure in Denver but in the bay area they can be pricey. I paid $500 for 4 hours.
@ejs1228: It all depends. It's it run by a person? Then you have to consider equipment cost, rentals, salary, profit (or else they won't be in business) and materials if they give prints etc....
All that to say, that really... no matter the method... I would say it seems like a great deal and wouldn't expect to find a "real" one for cheaper.
I'm sure this is regional but $500 actually seems pretty cheap to me. The photobooth companies around here charge $1000+.
We're having a "faux-to-booth" for a whopping $150.
wow, yeah. $500 seems great. There is a groupon for my city today, and it's for $200, but they usually run about 800-1000.
$500 would be nice. All of my quotes were $1000 and up. The one I'm going with is $1100 for four hours, but it has a cool feature that allows guests to upload their pictures straight to facebook. It's the little things. ;)
$500 seems like a bargain to me when you think of the costs associated with it, especially if they put no limit on the prints.
In addition to ink and photo paper, they have to pay an attendant the entire time, and then manage transport, setup, takedown,etc. Then there has to be profit for the company to make money, and enough to cover overhead expenses, depreciation and maintainance of the equipment,etc. I'd be worried they are operating at a loss and may not be around when your wedding comes.
Ours was 695 for 3 hours plus we had to pay 75 for an extra set of prints (we had guests glue them in our guestbook). I thought it was totally worth it, our guests had a blast and there are some hilarious pictures.
@USER876: I totally get this. But what if it's something that a photographer is offering on the side? I saw some photobooths that were about $600 but they were a bit flimsy looking BUT they did deliver output. I went with something priced a bit higher but I'm still scared they might not show up that day.....
@bRooklynRocks: I don't see why that matters. I would also look at the quality of the prints.
@USER876: Because maybe after paying 4-5k for pictures they might be cutting you a deal 
Our photographer is setting up a "photobooth" (I think it's slightly more sophisticated than the faux-to-booths I've seen, but it isn't a whole machine. It's a professional setup, though) for $200 "or as much as you feel comfortable paying me".
I think $500 for a real photobooth is actually a pretty good deal.
@bRooklynRocks: Photographers that charge 5K didn't get there by discounting their prices or giving "deals." I am sure after you pay their 5K fee, any extras like prints, CD, etc I suppose it's possible, but unlikely IMO. I also have not seen many higher end photographers bother with photobooths unless the photography company is an agency which offers "one stop shopping"
I'm talking about a real photobooth here, not a guy with a camera pointing into a box, and printing on a laser jet in the corner of the room
Mine is exactly $1000 for four hours. But it's an actual old time looking photobooth. I have it for four hours(so guests can use it during the meal because some are not in service during meal time). We also get a guestbook that will fit all of the guests pictures in and a metallic sharpie that they are able to sign with. It will also be run by a person the entire time. I will also receive a CD of all images.
I have went to a wedding that had a different style photobooth, it was a photo tent. I can say I did not like it as much, the photos came out of a photoprinter made for a camera which made it look cheaper. The tent also took up more room, however it could fit more people.
My photographer was running a deal on the photbooth(tent) for $500 but I really wanted something that looked like a real photobooth.
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If you don't mind me asking, how much did you all pay for your wedding booth? I've been quoted over $500 and it seems really high! I'd love to get one, but I'm wondering if it's worth the cost...