Look at it this way. Suppose an LBS is a Wall Street investment bank. The rule of thumb is that compensation is equal to no more than 50% of revenues. So, $80 an hour equals $40 an hour to the guy doing the work. There's about 2000 hours in a work year. Do you think your mechanic is making $80,000 per year in salary, bonus, benefits and employer-paid taxes? If so, then pay the money. If not, invest in a bike shop.