Hi Blake,
No "setup" should be more than $60-75. Are you saying you're buying $1K guitars and spending $300 (or
more) on "setup"? That ain't setup, that's a rebuild/refret/etc.
You are right. The price of a set-up is not dependent upon the value of the guitar. Set-up prices really have to do more at this point with demographics. If all other things are equal (skill of the repairman, &c.), then rent is really the determining factor. Rents have gone up so high in the NY area, for example, that a quality set-up which went for around $25 + parts (usually just strings) not too long ago now averages around $75. In Jim Mings area, that same set-up probably still goes for around $30.
best,
Bobby
