Mountain Biking - Why do high-end Mountian Bikes cost so much??

I know this seems like a dumb question, but I have always wonder why. For example, I have a Trek 4500. Now I know this in not the top-of-the-line model. My bike was around $400, so far it has been very reliable. Now, I know that if I were to buy a Trek Liquid 90 the components would be better. But I still don’t think another $1000 worth, or even more. Im sure the rims, shifter, shocks, headseat, breaks and dueraileer(sp) are better in the higher-end bikes. But should it cost 3x or 4x as much for a high end bike as a “average”one?? I know the labor cost between a the two has to be very minimal. Since most bike are made in China, I don’t think it would add more than $10 to the cost of the bike. An comparison that I would think of is, If the Ford Crown Victoria cost $25,000, then should a Lincoln Town Car cost $100,000? Nope, its more like $45,000.

Any thoughts???

Ford = Huffy

Originally posted by MKRG
Ford = Huffy
how insightful.
:rolleyes:

I can see your point. In many ways the parts appear similar. IMO the difference is a 50/50 split between better quality and status. Alot of people would buy something that costs much more money to simply say they own it.
On the other hand, many of the high-end bikes will cost more for the following reasons:

1. The frame material may be of a higher quality. (Stronger-lighter)
2. The cost of research and devolpment for specific use riding. (Engineering)
3. The component group will operate more smoothly, be more durable and better looking.

I'm sure there are other factors but that covers what I beleive are the main points.
The bike companies cannot spec a bike with high-end build kits and sell them for less money even if thay can afford to. That would be like Ford selling a Mustang Cobra for the cost of a GT and only adding the exact cost of the upgrades. Well, Ford (and bicycle companies) know they can capitalize on the name alone, and so they do.

The ability to own a high end bike depends on how deep your pockets are and how committed you are to the kind of riding you do.

Thanks Martin,

I have this theroy that it only cost a little more money to make a fully suspened high-end bike. But, the manufacture know that there are many people who believe the "ya get what ya pay for" theroy. So they take a $500 bike and mark it up to $1000 or even more.

Again, im not saying that the high-end bikes arnt any good, I just think the mark-up is substantial.

As 73 stated, the metals used are lighter and stronger. Also the components that come on the higher priced bikes are better.

If you are going to be racing or doing alot of hard riding then it would be worth it to invest in a higher end bike. If you plan on riding easy trails or just cruse around on a bike path, then the lower end bikes will work just fine.

Slainte:beer:

Then you have to look at production costs of building the better (more expensive) bike.

If your tooling up to build 10,000 bikes the cost of tooling up is spread out over the 10,000 bikes.

Now if your building only 100 bikes, that cost is spread out on only 100 bikes.

Also many of the lower end bikes are built off shore, labor is cheaper. Many of the up scale bikes are built in the US. The cost of labor is higher.

I also would like to feel that Higher end bike frames are also made beter... the tubes are mitered, then cut to fit really tight before welding.
The frames also are "straighter" and welded I would expect with more care. This would likely double the cost of a frame, if not tripple it. Newer alloys would require different welding procedures, somone has to pay for retooling... up the cost some more.

As for the other components, making something lighter while maintaining strength, requires great care and thought in the engineering phase, then also requires more work at the manufacturing phase. that where the extra cost comes in I would say. so you have retooling costs, costs for additional hardware, extra machining to reduce weight... double the costs, maybe tripple it?


The last kicker is the Materials used, titanium hardware, pins, springs are bloody expensive compaired to steel, and your bill keeps climbing.

Just try and rennovate a bathroom for less than $3000 bucks... and you will have your Huffy!

Well put guys.

"
I know the labor cost between a the two has to be very minimal. Since most bike are made in China, I don’t think it would add more than $10 to the cost of the bike.

The welder in the US will earn far more then the welder in China. Welders in the US can easly make $20 an hour. The welder in China is paid about $3. And don't forget the US worker is also getting bennie's on top of there pay.

So in a forty hour week if the both welders build 50 frames...
US $800.00 + bennies
China $120.00

I have worked in the welding industry for over 20 years.

Okie what makes the cost go up.. If you look at a low end MTB, the frame is worth maybe $200.. while high end you can go up to $1500. There is alot of research into the high end bike.. there is one cost. Materials cost more (more then $10 by far), the shock alone could cost a few hundred dollars. The materials jump dramaticaly, since some are TI.. or CF. Then we come to the wheels that come with the bike, a cheap bike's wheels will cost under $100 in material costs. Which they normaly do not make themselves.. like mavic rims.. shimano hubs.. dt spokes which they buy from outside companies, cheaper then you or me but still costs there. While a higher end will have higher end components there so more cost there. And the wheels that come with higher end bikes will take alot more beating and last longer (on average).. THen we come down to seat post.. handlebars.. stems.. Cheap bike will probably come with cheap aluminum componets.. which they buy from outside company. And higher end better components from outside company so more cost their. THen we come to the fork there is a dramatic costs differnet there alone, cheap fork will probably run them less then $50.. whiel higher end will run them let's say $400..
Then you come to the component group on the bike.. XTR vs.. LX even is a dramatic cost difference.

All of these things add up to the cost of the bike, and if you upgraded all the components (minus the frame) on your current bike you would spend over $1000 easily.


And let me say, I purchase higher end bike's on average, since I don't like the feeling I should have bought better to begin with. This might not be the smartest thing to do but it is my money :)

Originally posted by jonspolaris
... So they take a $500 bike and mark it up to $1000 or even more....
I think this is doubtful because of the simple fact that some manufacturer will come in and undercut the price.

This will be the start of a "price war" and, eventually, prices will stabilize at a point where all manu's prices are roughly equivalent for equivalent product.

I'll grant that margins on the top-end bikes are higher in total $ than the low-end bikes, but this is expected. It's the same as cars. Manu's make their money on the top end.

Having some experience with working for bike shops, I can say that your local dealer is making little profit on any bike he sells. Most of the money the shops take in are ic components, installation of components and parts and labor from service. So just in case anyone starts pointing the finger toward the LBS for high prices, look somewhere else.
Just a thought....

Im not going to argue with you guys, because we mostly agree. I Know that the high-end bikes, like the Liquid series from Trek, has better components. I Just have a hard time believing that there is that much R@D invonved in a Bike. I wouldnet be surprised if most of the high-end bikes are made in China also. If the Chineese work for $3/hr then There is a very large margin on these bike.

My bike, a Trek 4500, Works very well. They welds are done correctly and they frame seems very welll built. My frame is Alumuimum.

Oh and for the companys not marking them up that much because of competition. I think the companys know that most bikers will believe in "ya get what ya pay for". Even though this in not always true. How many women do you know that want the less expensive diamond, even if its the same as the more expensive one? NONE

When I was looking to buy my bike, the bike shop had a Specialized MTB right next to it. The specialized bike was the equlivant of mine except that it cost $40 more. The only visual difference was the Tires were different and the color was different. The Owner of the shop even told me the trek was the better value. He said the only real difference between the two was Color and price. This was an example of when more money wouldent have bought a better bike.

take a look at the Specialized Epic and tell me that there isn't much R&D in bike design. How do you think the Horst Link suspension, VPP suspension, air/oil shocks, and carbon parts came about? These all required R&D and a significant amount of it.
Each company spends alot of R&D time to fine tune and change suspension designs, materials and geometry to suit their goals. They don't just slap tubes together and call it done.
Just because manufacturing is done in China doesn't mean it was designed there. Mercedes and BMW are manufactured in the USA, Fords are manufactured in Mexico, etc, etc. Manufacturing cost doesn't affect R&D cost.

Yes, for $40 difference, color and tires is a fair price. If $40 makes you happier than it IS a better bike for the owner that is happy with his purchase.

Kudos to racer. He has it dead on. The making of anything (your toaster to your lawnmower) makes up squat in the cost. You are paying for so much more. Most designs are patended and very expensive and make a huge diff in riding. There are some bikes I agree (a single pivot Orange dh bike really shouldn't cost much because it is all materials now, nothing new or inovative). But 80% of the time you are paying for new and improved design.

In 5 years the horst link 'may' be common or replaced making it a cheap under 1000$ bike. Who knows.

As for ht's. Components and beefiness. I am not expert in frame design but hanging out on ridemonkey has taught me a small amount. Frame designs are still evolving and becoming stronger for less with less.

Cheers. I understand the reason to pay more for better because generally that holds true in this industry.

Also we have been speaing of frames almost exlusively on duallies. What about those little shocks in there. They are constantly evolving and always being remade / redesigned. These shocks as pointed out to me are not nearly as simplified as car shocks. They require specific settings and feel for each type of design in order to please 'most' people. Until we get a set shock (not likely to happen) high end bikes which always push the envelope in what they use will be way more.

And to think I didn't even mention the constantly evolving dc front fork on each bike :)..

Originally posted by jonspolaris
When I was looking to buy my bike, the bike shop had a Specialized MTB right next to it. The specialized bike was the equlivant of mine except that it cost $40 more. The only visual difference was the Tires were different and the color was different. The Owner of the shop even told me the trek was the better value. He said the only real difference between the two was Color and price. This was an example of when more money wouldent have bought a better bike.

The owner could have been wrong. You can take two medium end xc bikes and compare them. One may cost more because of very specific reasons. Some frames are burlier. The metal is finished differently. I am not saying this is always the case but in order to truly compare you would have to compare welds and weld strenghts, frame material and its rating. They may look the same but they could be very different in what I consider key areas (I tend to brake mid range frames with ease).

Originally posted by jonspolaris
My bike was around $400, so far it has been very reliable.

A wise man (I believe K. Bontrager) once said: "Stength, Weight or Price. Pick any two."

This sums up the mtb component game pretty well, the components which are in turn used to build the bike. Everything is a compromise based on these three factors.

Now, you have mentioned a couple of times that your is reliable, works very well, etc. However, since you are asking these questions, I take it you are a somewhat new rider. If this is the case, you are basing your bikes reliability on your limited experience. If you decide to continue mountain biking, pushing yourself and your equipment, you will soon see the limitations of you bike. The more miles you put in and the more daring you become on your bike, the more you will realize you need stronger and more reliable equipment unless you want to get hurt or walk back to the trailhead.

A couple of things to look at: Trek offers a comparison tool, here (http://www.trekbikes.com/bikes/2003/compare/compare.jsp?bike1=1164600&bike2=1022600&bike3=null) is your bike compared to a Fuel 90. Things that will make a low end bike meet it's price point: the shock, wheels, crankset.

Also, keep in mind, if you tried to build that high-end bike part by part, the price would probably be double.

High end bikes cost a lot, because we'll pay it.