It's so easy to open up a big can of worms with little cosmetic touchups like this. Ghost lines, air bubbles, shrinkage, sand throughs - sometimes it goes fine, but there are just so many complications that can potentially come up that quickly turn it in to a spiraling loss. Going down to bare wood would be a definite no-no in my book, as trying to feather in a new lacquer finish to an old one is going to look terrible unless you're Michelangelo (or Tom Marcel). It always seems so simple, but it isn't.

My policy is simple - I offer no cosmetic repairs unless they are directly linked to a structural repair I am working on. I go through a lot less stress and lose a lot less money this way.

If that came in to my shop I would simply turn it away. Assure them it does not effect the tone, playability, or structural stability of the instrument. Plus if it were to be repaired there is an incredible power to Murphy's Law here - within a few weeks it seems nearly guaranteed that equal or worse nick will come along. If they were persistent, you should quote for worst case scenario - removing the neck and bridge, refinishing the top, resetting the neck with heel touchup, regluing the bridge, and reinstalling the pick guard. About $800-$1000. Seriously.

I'd understand if you did it at a small loss to get the guys future custom, thats what i'd have expected/ planned for.

Good job Alain! Well done.

Good call! Everyone wins here, You get more work and the client is happy with the repair.

For future reference, you might want to leave the shellac out. I can't say for certain, but it seems like the shellac would create a barrier between the original lacquer finish and the touch up lacquer. This might prevent burn-in which helps to hide lacquer repairs.