I'm involved in a very similar transaction right now, but not bike related. 
 My fence was falling down.  I told my neighbor I wanted it fixed, and told 
him I would get quotes.  I came up with a design, and got a quote from a 
tradesperson who has done a lot of work in the neighborhood.  He estimated 
$1000.  $500 materials + $500 labor.  When I told my neighbor about it, he 
objected.  "I've had that guy do work for me before, and I was not happy". 
 I already had the design done, and I'm also kind of a perfectionist, so I 
told him I'd build the fence myself and split the materials with him.  

I built the fence last weekend while my neighbor was away.  He came back 
and is just delighted at my work.  Turns out that I spent $606 on 
materials.  I gave him the receipts, and I have a feeling he's going to add 
something on to his half, for my trouble.  He's very old and very charming, 
so impressing him with my work is already a good enough reward, but I was 
willing to do the labor for free.  So whatever he gives, even if it's 
nothing, is fine.  I volunteered after all.  

On Tuesday, March 24, 2015 at 10:30:06 AM UTC-7, Philip Williamson wrote:
>
> "Keep it real" is probably the best advice. 
>
> Don't offer something you'd think the other person greedy for accepting? 
> Don't accept something that seems out of line with the effort? 
> Last time this came up, someone offered, I declined, and I got to feel 
> good on both counts. ;^) 
>
> It's a hobby, not a business, and bikes are an interesting end in 
> themselves. I drove across town to look at a Cannondale (not interesting to 
> me) for an out of town friend, and the seller had old French bikes, 
> Rivendells, and tandems hanging from the ceiling, so we had plenty to talk 
> about. 
>
> Philip 
> www.biketinker.com

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