Your example is not necessarily a real world scenario. The good, better, best model is far more realistic. "Hi, I have a wall in my building. I want my logo up there. What can you offer?"
Then you start with the good = Vinyl slapped on the wall. Better = part vinyl, part dimensional using cost effective but appropriate materials. Best = Vinyl wall
paper, lots of dimension with letters and interesting materials, etc.
And there is no reason you can't necessarily combine some of the ideas as well. But the idea is to offer customers 3 main options on how to do the job at different budget points and let them decide how much they do or don't want to spend.
If a customer walks in and the job is all spec'd out and your job is just to quote it, that's a completely different job. But even then, I'll typically sit down and see if I can figure out a way to do the job where the end result is essentially the same but with a few cost saving measures. For example, swapping from cut acrylic to PVC is one of my favorite ways to save money on dimensional
sign jobs. Very similar look for a much smaller budget.
Lastly, anyone that doesn't talk budget early on in the project is making a mistake. People with $100 in their pocket often act like they have $1000. No point in selling high end stuff to people with no money or people unwilling to spend money. If they walk in the door expecting to spend $1000, you might as well sell them something for $1000 +/- or clue them in and see if they want to bump up their budget.