Amazing post, Dave, and definitely an important topic. My first book I used one of the larger “editorial agencies” you mentioned. The quality wasn’t bad but there was no direct contact with the editor. Just ship it to them and they ship it back. I’ve tried out several editors now and found a very good one who did a great job on my list book. Once you find a good editor, stick with him/her and build a relationship if you can. Thanks for the list provided and this editors test is a great addition.
The team at Ebook Launch was highly recommended by a publishing website I trust, and I turned to them for helping me format my ebook. They have been wonderful to work with! The turnaround was unexpectedly fast and I got incredible value for my money. But more importantly, Adrian gave my book the same care I would as an author. He offered suggestions that improved its appearance and provided a beautiful, clean format. I also appreciated his patience and friendliness. If you want great service at a great price, Ebook Launch is the way to go.

The quotes I posted are for a specialized genre – romance. These books are shorter than many other types of fiction and yes the editors are professional. Many do this as a favor to authors they love and work with in publishing houses…so they lower their rates for private work. Over time of course, their rates increase but the prices I quoted for my industry only.
When you get that email, particularly if it's your first book, make sure you are well-rested and in a positive frame of mind before you open it. If it’s your first book, the editing process will be hard on your ego, but remember, the editor’s job is to make your book better and help you learn the craft. You are paying for them to give you critical feedback, not to pat you on the back and say ‘good job.'
ROUND TWO: an in-depth, comprehensive, line-edit that includes rewriting sentences, improving word choice, organization, plotting and pacing. We’ll make the dialogue stronger and more believable, the action more tense and nail-biting, and the emotional peaks less melodramatic and cheesy. For non-fiction, we’ll strengthen your argument and make the writing more engaging.
2. Copyeditors aren’t the last line of defense when it comes to a book’s mistakes. Formatting, which is done after an editor has done their job, can lead to unintended errors being introduced into the text. That’s why it’s important to hire proofreaders to comb through edited text *after* the book has been formatted for print or digital. Proofreaders are your last line of defense—but they’re human too.