It's hard to say, if you didn't know if your transmission was shifting strange or not. Would I pay $80 for replacing it, I think that's high. Call another shop and ask what they would charge to replace the VM. If the price is much different I'd ask your mech if he'd do it for the same amount. If not take it somewhere else. A VM costs $35 from NAPA in Canada, I suppose it might take half a hour to replace it.
Better yet, ask him why he thinks it needs replacing and come back here with his reasons...