Hey Not Steve.
I've found that the reasonableness of an offer really depends on what the seller expects. If your dealer has the guitar priced at $125 and you offer $50 he's more likely to be insulted than if he has the guitar priced at $85.
Given the condition of the guitar with the bad pup, I think $50 would be reasonable. The ironic thing is that these guitars are frequently worth more parted out than whole.
There is a guy looking for a Victoria guitar on another thread. You may want to contact him to see if you can do a quick flip of the "new in box" style guitar with him and essentially pay for your other project guitar.
Here's a link to the thread. A PM never hurts to find out what he's after.