It seems you are not ready which is understandable given you're relatively new to SCing - you def need to get more info on how to negotiate it b/c from what you've mentioned so far.
$1200 is INSANE - as Subraman mentioned letting a dancer dictate the negotiation and set the price, is like going to a car-dealership and paying w/e the salesman tells you - Dallas is not an expensive-market cost-of-living wise like NYC or LA; so $1200 mayyyyybe in NYC or LA, maybe. The fact you did not balk at that offer may be the reason you are getting so many OTC offers; as jackslash mentioned they are probably pegging you as easy-meat - and her telling you that shit of going w/ her for a high-price being "safer"; please; that's just part of her sales-pitch/hustle - these women do this day-in and day-out and they're leaps-and-bounds ahead of the avg SC custy and why many custies are easily manipulated and often easily-taken.
Dancers quoting sky-high prices for extras or OTC is as common as g-strings - if they notice interest in a custy and notice he doesn't have a clue; then sky-high quotes are common as it was in your case.
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I'd say $200 could do for a mid-tier club dancer (maybe $300 if she's one of the top lookers in the whole club)
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$300 for a better club like Baby Dolls (maybe $400 if she's one of one of the top lookers in the whole club) - and maybe $500 if she's OMG I gotta have this bitch over any bitch I've seen
If you want an all-nighter then you'd have to throw in maybe an extra $100 or $200; but if you just want to bang-her for an hour or two the above prices IMO are fair.
If they are grinding on dudes, and being groped by dudes, for $20/dance, then $300 for an hour or two of OTC is good/fair compensation especially if she does it on a day-off thus she avoids having to pay any house-fees - don't fall for her telling you "well I'd have to miss a shift to see you OTC and that's why I gotta have $$$" - that's bullshit and part of the hustle (unless you have to see her on a specific date and specific time to where she would miss a shift).
Also - Baby Dolls Champagne Room at $600 just for the room is not the norm- most clubs around the country charge about $100/30-minutes or so for the room-fee - other clubs charge more but these are often non-extras clubs (camera-monitored) and the high VIP fee often includes the dances.
Baby Dolls is not the place to do ITC extras b/c of the outrageous room-fee - that's why it's rarely mentioned in the reviews and when I lived in big-D and clubbed @ BDs I don't recall ever being propositioned for the Champagne Room since most dancers knew most custies would not go for those outrageous prices (and back then, late-2000s, extras were not that common in most Dallas clubs including BDs; to the best of my knowledge since I was not a TUSCLer back then).