In regards to the bike that you mentioned, if you had the same work done at the bike shop that I managed, you would have been given the follow estimate, 20$ per tire, 4$ per tube, 3$ per cable, 20$ for the chain, 8$ for the brake pads 50$ for the tune up, 10$ to change over the tires, and 10$ to change the chain. We would have charged a 10$ cleaning fee also. An estimate at my shop would have been 170$ before tax. Unless they were going to do some major overhaul work to the headset, bottom bracket and hubs, I think they are trying to take you for a ride, and not the kind that we like :
Old Bike restoration
"Again, I would strongly caution against casting aspersions on this shop without having _seen_ the bike.
Remember that it was ""dug out of"" a garage.
Will you stake your, and your shop's, reputation on replacing tires, cables, chain, tubes and handing it back to the customer to ride? Remember also that it probably has a Sturmey-Archer internal gear hub. These are generally pretty reliable units when in regular service, but they can be finicky if neglected. Will you guarantee its function after a $170 overhaul?
Is the Brooks saddle, that is probably on there, still servicable, or is its leather dried and cracked?
A request was made to recommend shops. This may not be of use to you, but one authority I know from personal experience is Mike McGettigan, at Trophy Bikes in Philadelphia, who hosts the annual British Bike Weekend. I attended the latter event and can vouch for Mike's expertise, dedication and integrity."
The original poster said that the bike is a ten-speed. Then it wouldn't have a S.A. hub. I'd think that it would have a Huret or Suntour derailleur. And the Brooks saddle would probably be a vinyl model, no problem with dried and cracked leather. The leather B-15 would have been used on the Sprite in the '60's, not during the bike boom.
Parts may be scarce or even non-existent - when they are available the price often bears no relation whatsoever to what the item is actually worth based on function. Take a look at this item on cyclingnews.com concerning an eBay auction of a 40-year-old *unused* rear derailer (halfway down the page), and be sure to click on the link to the auction itself:
http://www.cyclingnews.com/news/?id=2003/may03/may07news
(Make sure you're sitting down when you read this!)
"$20 for a 5-speed chain, and another $10 to install it?
""Chainwheel"""
Honestly, it's a low-end Raleigh. Gaspipe frame with cheap steel parts.
Now if you just want something retro-looking to tinker up and down the bike path it's fine.
If you did the work yourself, snagging parts from the mail order blow-out bins, the job could be done for well under $100. But to pay pro mechanics to make it roadworthy again probably ain't worth it, unless there's some sentimental factor that'd justify it for you.