That price is very high, but if it includes the labor, a custom-cut liner, water delivery,and regrading sand, it may be appropriate. If you are up for doing it yourself, you can save serious $$$--and there are a number of folks here who can advise you.
But, assuming you can't take that on:
If they are tears and not holes you have several options short of replacement. All will show, however, and be pretty ugly, but will get you a few more seasons out of the liner. Since it's above the water line, single patches may suffice. The best patching material is a match to the liner itself--so if it's not got a pattern, or the pattern is standard, you may be able to get large enough chunks to cover the holes--but remember: the patch has to be much, much larger than the hole--I'd go at least 6" in each direction.
Alternatively, you may be able to find thinner blue, green or clear patches, but you need a very large size--standard patch kits won't help.
The best glue is Boxer Vinyl Adhesive, #100, and it works over and under the water.
I like to use a small rubber tile roller to smooth out the patch.
The most important thing to watch for is to make sure the edges of the patch are sealed all the way around. The second most important thing is try to avoid bubbles and wrinkles in the patch, but especially at the corners.
When I have to patch, it always seems to be under water--and the usually COLD water! I then apply a patch quite a bit bigger than the hole, then apply a much larger patch as if the first patch was a hole. On both, sealing the edges is most important.
It will never look like it's not patched, but your liner will be fixed.
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