You have quite a racket going there. $260 for that piece of crap? Yes, your labor and frustration are worth that, but it doesn't sound like the market would bear that kind of price on what you describe. However, from reading some of your posts, it's obvious you are good at developing relationships with your customers and enjoy providing service. And of course, it's worth whatever that particular customer is willing to pay. Your write up is definitely a good marketing tool for making the customer feel obligated to pay the full amount for a rust bucket.

I've been offered several opportunities to build bikes for a 'customer' and I've usually turned it down, reasoning the 'hidden' problems of the type you encountered would crop up. I did it once for an acquaintance, offering a Panasonic DX-3000 for $50 and offering to help him overhaul it. He offered more, but I figured I'd be a good guy. I ended up overhauling it myself, and he has yet to pay the $50. I could easily have flipped it for $250. Incidentally, every bearing was overhauled with new bearing balls and grease - I consider that a given on any flip for which I ask a 'premium' price.