I was Quoted $225
at a good shop

Neck for my last Tele build came with a roughly slotted Warmoth bone nut installed for $104.95 shipped. Is it something odd, like an old Japanese Ibanez artist or just a Les Paul or strat?

I honestly don't know, as I make my own.  The cost of a bone nut blank, is maybe $5, and the rest is labor. I think a couple hours labor cost would be reasonable in most cases.

With that said, it takes me a heck of a lot longer to make one (probably twice as long), as I don't do it often, and I'm pretty meticulous about getting it just right.  With a little practice, I think I could get it down to a couple of hours, though.

that sounds like a good deal assuming they are throwing in a fret level and polish job.

looking at Dan Erlewine's vid, the hardest part is giving it a nice polish.

I find the polishing to be pretty easy, as long as you start out with a nice even shape to the nut.  If you get a couple of deep(er) file marks between two of the string slots, then it becomes a problem.

The whole nut making process is a bit of a pain, and frankly, I don't much enjoy it.  Starting with having to make the nut blank fit the slot just right.  A little too much sanding, and it's too thin, or too short.  So it's sand it, check it, sand it, check it, etc.   I set the slot depth using the "Frank Ford method", which also means file it, check it, file it, check it, etc., and that means  means strings on, strings off, strings on, strings off.  And once the slots are cut to depth, I file any excess material off the top of the nut, to set how high the strings rest in the slots.  Again, file it, strings on, check it, etc.  One or two file strokes too many, and the nut is ruined. It's tedious, and I'm not a patient kind of  guy.  

For some reason, my Gibson J-45 came with a Tusq nut and saddle.  OK, I guess, but I wanted bone so I made new ones.  I think the bone saddle made a noticeable difference in how much the strings "ring out", but couldn't tell any difference with the new bone nut....except that it is now white.  

I can't imagine paying for setups.

But then I am an engineer and I love the process.

2x72 makes quick work of new nuts/saddles.

Cutting a new nut isn't really what I'd consider under the umbrella of "setup".

OK.

But several of the guitars I have bought had nut issues out of the box.  Problems that couldn't be fixed via the easier adjustments.

And almost every acoustic guitar I have run into under $500 has needed the saddle shortened to get decent action anywhere near fret 12.

Even if you can't do the nut/saddle work, if you understand the setup process at least you will have ruled out the simple stuff and be pretty sure what you will have to pay to have done.

I suspect most luthiers operate a bit like auto shops though, so don't tell them what you think is wrong or else that's getting replaced even if it wasn't the problem.  

You can buy a nice set of files for the wound strings, make the fine ones out of some feeler gauges, purchase a belt or disc sander and a box of blanks and experiment till you're a master at it for about $100....less, actually.

So, I really don't understand the concept of paying for this, especially given the payoff once you can do it well.

If you can actually PLAY the guitar, then cutting a nut is well within anyone's ability to do well.

I got a quote of $85 for a polished bone nut.

I decided instead to spend more than that on the tools (nut files, string layout ruler, nut blanks) and do it myself.  Because I am an idiot

Nah, you paid for the education. Once you're done, you know as much as the guy who gets $85 on the nut, and the next 10 you do are basically free and come with a free dose of pride.

Hopefully it goes better than my adventures with nitrocellulose finishing have gone

Well some lessons take 5 or 6 cracks at it until you clear the competency bar.

I have a 15 gallon bucket full of failed guitar necks in the garage to testify.

Last nut I had cut was by Lauren Ellis at Strait. She does all of Eric Johnson’s setups. Think it costed me $150 for a new bone nut. Erlewine was about the same price.

I was quoted $60 for new nut (possibly tusq not bone) as well as full set up by my local shop.

True

I was quoted $200 for one to replace the chipped nut on my SG.  That was about 10 years ago. It's probably closer to $300 now and still with a long wait.  This was at one of the better luthiers in my area.

Wow!
I paid $35. for a very good luthier, not "Tech"to install a bone nut on my Martin HD 28.

Job was done to excellence.