Fiddlerman said
That cost for fixing the pegs is ridiculous.  They should have suggested you change them to regular wooden pegs instead.
Were the holes too big to just simply install new pegs? Adding wooden bushings would naturally add to the price quite a bit.

Yes, Pierre, ridiculously expensive was my initial reaction.

Caspari peg is similar to planetary/perfection peg without gear reduction for fine tuning, so it's larger than any standard wooden peg, and the hole is not only larger it's tapered the wrong way. My luthiers said they have to drill out all holes, glue wooden dowels and let it set even before making new holes for new pegs, etc.

I did not go that round obviously. All the caspari assemblies are in good shape except the outer shells/bushings got loose from the peg holes, due to dried up glue, turning freely and can't hold any string tension. So I use heat gun/hair dryer to heat up the peg box so the wood would shrink and make the gaps between them larger, then high pressure air to clean out old glue dust, and while the wood was still at high temperature, glue was able to penetrate and fill in the gaps. Left it for a day back to room temperature so the wood expanded and created a better bonding.

It's worked beautifully since, holding the tuning even better than my other regular pegs. The only inconvenience is that, by design, they need a small screwdriver to increase/reduce friction for tuning.