General Cycling Discussion - Cost of bikes getting way overpriced!!!

Is it me or has anyone else noticed the cost of bikes are becoming way overpriced?

For instance in 2006 I bought a Trek 7000 for a then MSRP of $259. This year the price went up just $10 which is fine in my book, that is just $269. But today I ran across Treks website which has been updated to reflect the 2008 models. BAM, the TREK 7000 is now $309 without any noticeable improvements of manufacturing or components. Is it me or does anybody else thing that since the popularity of cycling in the United States that the major Bike Companies are really starting to stick it to the consumers?

Its just a rant but where does TREK get the idea of charging $309 on a bike that is only worth $269 at the most? I mean come on Trek you are not Cannondale which is notorious for over charging on the value of their bikes!

The dollar is shrinking in value compared to many other currencies. If those bikes have parts from overseas on them (Shimano) then those parts will cost much more than they did in the past. That will result in the bikes costing more.

try buying a bike in Canada, and you will soon discover your prices are VERY INEXPENSIVE.

Good grief, I had no idea the Trek 7000 looks like THAT now.

try buying a bike in Canada, and you will soon discover your prices are VERY INEXPENSIVE.

Try it in the UK and you will find that Bikes are twice the US price. They just convert the $ sign to a £

Thanks to George Bush, the value of a dollar is falling through the floor. Imported goods are going up. And since when is $309 overpriced? You need to step up. Nice rides are $1500.00 and up. Many are 'way up', but they are wa-a-ay nice. Adult toys cost real money. Get with it. bk

Kinda ridiculous actually.
I mean, assuming cro-moly/Al framesets, how much does it REALLY cost to produce a piece of 19th/20th century technology?

I bet the manufacturing costs of a shimano XTR RD is about $10/unit. WTF do they sell for 18X that price?

Thanks to George Bush, the value of a dollar is falling through the floor.

While Georgie-boy is certainly good at sticking his thumb in it, the dollar's decline is due to Nixon and every other subsequent president (including the donkeys) who went along with the fiat fiasco.

The dollar is actually "worth" quite a bit less than is even currently advertised.

Thanks to George Bush, the value of a dollar is falling through the floor. Imported goods are going up. ...
This ain't hardly Dubya's fault.
If you look at a yearly history of the Dow Jones, the rate of increase jumped around 1985, and jumped again around 1995. If the stock market had kept climbing at the rate it did previous to 1985, it would only be at 1500 to 2000 points today.
http://en.wikipedia.org/wiki/Image:DJIA_historical_graph.svg
~

$309 is overpriced for something that is only worth $269!

Someone who is buying a $269 bike for $309 is not in the market for something that cost $1500.

Thats like telling someone to step up to buy a Porsche Turbo when they can only afford a Honda Civic.

Thanks to George Bush, the value of a dollar is falling through the floor. Imported goods are going up. And since when is $309 overpriced? You need to step up. Nice rides are $1500.00 and up. Many are 'way up', but they are wa-a-ay nice. Adult toys cost real money. Get with it. bk

If I could give George Bush credit for the falling dollar, I would thank him and praise him. The strong dollar is a big reason why so many jobs have gone overseas. Weakening the dollar will cause inflation in the short-term, but be healthy for the USA in the long-term.

OK, back this thread. I think that bicycles are still incredibly cheap. I remember "back in the day" (like in the '70's) when a good bike could easily cost $700. That was when a lot of dudes were making $2.10 per hour = That's 333 hours of work to buy a bicycle.

Today, even if you buy a very nice bike today with better components than ever for $1,200, with minimum wage at (what is it now - $5.15/hr?) = 233 hours of work at minimum wage. That's not bad.

I'm pretty damn sure it costs like $50 to make a bike.

I'm pretty damn sure it costs like $50 to make a bike.


When you build bikes for $50.00, call me.

Kinda ridiculous actually.
I mean, assuming cro-moly/Al framesets, how much does it REALLY cost to produce a piece of 19th/20th century technology?

I bet the manufacturing costs of a shimano XTR RD is about $10/unit. WTF do they sell for 18X that price?

Because there are Jokers who really believe "You need to step up. Nice rides are $1500.00 and up. Many are 'way up', but they are wa-a-ay nice. Adult toys cost real money. Get with it." Got it?

A 20 oz soda costs $1.09 in 2006, now the same soda is $1.49. The cost of fuel has risen greatly, and that impacts everything. A weak dollar doesn't help, and neither is the inability to think in abstract.

Bikes are incredibly inexpensive compared to some other things. Compare a bike's complexity and cost to those of such items as table lamps, for instance.

http://www.lampstore.com/storefront/showlamp.php?lmpid=1706&categoryname=Classic-Desk&categoryid=61

A 20 oz soda costs $1.09 in 2006, now the same soda is $1.49. The cost of fuel has risen greatly, and that impacts everything. A weak dollar doesn't help, and neither is the inability to think in abstract.

A soda from a fountain still costs about 5¢ to produce. I think that even includes the cup.

A soda from a fountain still costs about 5¢ to produce. I think that even includes the cup.

Yes, a nickel to produce before adding in shipping costs, labor costs, legal costs, overhead, etc.

Do you get it now? Do you prefer perpetuating the ignorant American stereotype?

That and I was talking about prepackaged bottles, not fountain drinks.

Yes, a nickel to produce before adding in shipping costs, labor costs, legal costs, overhead, etc.

Do you get it now? Do you prefer perpetuating the ignorant American stereotype?

That and I was talking about prepackaged bottles, not fountain drinks.

Even counting all that other stuff, the profit margin on fountain drinks is still insanely huge. The seller -- restaurant, fast food store, etc -- is still only paying about 5¢ per drink. That's after all the other costs you mention. I'm in the wrong business.

And bottles -- nope. Doesn't account for the price increase.

What's happening is that they're using low-cost, high-margin items to make even more money, hopefully without increasing prices of other items as much as they would otherwise. Side items & drinks are where restaurants have their highest profit margins anyway.

$309 is overpriced for something that is only worth $269!

Someone who is buying a $269 bike for $309 is not in the market for something that cost $1500.

Thats like telling someone to step up to buy a Porsche Turbo when they can only afford a Honda Civic.

itsIRIEpat...gotten a pay raise lately?

Also keep in mind that raw materials are a finite supply and subject to the whims of market pricing. I work in architectural metals, material prices have escalated greatly in the past couple of years. We use quite a bit of stainless, aluminum and copper sheet goods in our business. Stainless has almost tripled in cost in the past 18 months with aluminum and copper not far behind. Factor in increased energy costs which affects everything from manufacturing to shipping to the cost of electricity at the store, I can believe a cost increase of 13-15%% isn't to far out of order.

Aaron:)

Bikes are incredibly inexpensive compared to some other things. Compare a bike's complexity and cost to those of such items as table lamps, for instance.

http://www.lampstore.com/storefront/showlamp.php?lmpid=1706&categoryname=Classic-Desk&categoryid=61

That is such a nice comparison! I'm impressed with how inexpensive bikes are... there's a good bike for every price range. You can get a sweet vintage bike that is operable for $50, and new bikes with decent parts sell for $300-400. Now, how much have I spent in the last 10 years on couches that my dogs ate?

Try it in the UK and you will find that Bikes are twice the US price. They just convert the $ sign to a £

Same thing here in Latvia. The Latvian lat is just about on par with the British Pound. Anything that costs $300 in the States will cost 300 lats here.

I get very good discounts at the LBS, but marked prices horrible.

Granted, to some people $50 dollars maybe a considerable expense, but after ownership of several automobiles, for me it's a mere bump in the road. Just do some comparing on how far $269, or even $309 will get you with an automobile, and those $1500 to $3000 + bikes start looking like bargains.

"Use the West for Chinese means" is a Central planning edict.

Just wait until the dollar really tanks due to a massive international selloff of american currency and investments. THEN bikes will be REALLY expensive.

Well, not the used ones already here.

My sister told me there are no american-made bicycle tires?

I don't think that 'cost' can be overpriced. It like saying price is overpriced.:rolleyes:

I expected at least a 50% jump in price.

That difference is peanuts.

If you think bikes are expensive now, just wait 'til the oil crunch hits. I see the price of bikes, components, accessories and everything else associated with cycling skyrocketing, if you can even find what you want, just because of demand.

Well, I'm not sure how its going elsewhere but BMX products do have a gradual rise in price. However it doesn't seem to be too bad simply because I think the old idea of throwing tons of material on a part for strength isn't even considered anymore. The design aspect of frames and components in the BMX industry have dramatically changed. For example a fork from about 10 years ago might weigh around 50-60 ounces. But now a BMX company called Odyssey is testing and has yet to release their 'Directors Fork' which will be around 30 ounces. That right there is completely revolutionary if it had the average strength of previous forks. But! Odyssey claims that this prototype fork will be significantly stronger than any other on the market. Sounds far fetched but then again they already have made THE top parts for the past few years in BMX. Pretty much dominating everything with price, strength, weight and quality. Other companies are trying to keep up and compete and not doing too bad but due to this competition and advances in these design comes a rise in price. Could it be the same in other forms of cycling?

My sister told me there are no american-made bicycle tires?

That is why they are starting to call them "tyres" again. ;)

My sister told me there are no american-made bicycle tires?

Actually I think Coker still does but they are low production specialty tires for restorations. But as far as general use replacement tires...nope. I try to buy tires made in first tier countries but they are hard to find when all everyone does is shop price. I have pair of Michelin Tours in the 27x1-1/4 size that were made in England:D

Aaron:)

While Georgie-boy is certainly good at sticking his thumb in it, the dollar's decline is due to Nixon and every other subsequent president (including the donkeys) who went along with the fiat fiasco.

The dollar is actually "worth" quite a bit less than is even currently advertised.

finally someone said it!

current dollar = $0 it is nothing more than a debt note.

finally someone said it!

current dollar = $0 it is nothing more than a debt note.

Please mail all your worthless debt note $$'s to me. I'll mail you some valuable pennies to pay for the postage.

Well the cost increase from $269 to $309 is roughly 14.87%. So the increase in the cost of metals and alloys does present a legitimate argument for the increase of the cost of Bicycles. I wonder if that is a direct correlation for the increase in the price of bikes.

Do we blame CHINA for the increase in the price of metals and alloys?

Blame a recent import tax. According to an LBS near here, he said that the 08's will be more than the 07's because now bicycles imported will be hit with an import tax they previously avoided. Cannondale is one of the few to escape since all their frames are made here.

Even counting all that other stuff, the profit margin on fountain drinks is still insanely huge. The seller -- restaurant, fast food store, etc -- is still only paying about 5¢ per drink. That's after all the other costs you mention. I'm in the wrong business.

And bottles -- nope. Doesn't account for the price increase.

What's happening is that they're using low-cost, high-margin items to make even more money, hopefully without increasing prices of other items as much as they would otherwise. Side items & drinks are where restaurants have their highest profit margins anyway.

So don't waste your money on crap like soda and french fries. Why pay to be sick and then complain about it?

So don't waste your money on crap like soda and french fries. Why pay to be sick and then complain about it?

Well, yeah -- who said that I was buying that stuff anyway? ;)

Bike companies exist to make a profit - as big a profit as they possibly can. Don't like the prices they charge? Don't buy their merchandise. It's that simple.

This isn't a monopoly. There are plenty of companies out there that sell bikes.

Bike prices may be on the rise from 2-3 years ago, but compared to 6-8 years ago, bikes these days give you MUCH better bang for the buck.


I agree, the Schwinn Varsity I bought in 1969 for $97 dollars could cost between $500 to $1300 dollars today if built in the US the same way it was built in 1969, according to this inflation calculator, http://measuringworth.com/calculators/uscompare/# and not have alot of the extras that todays bikes have.

Kinda ridiculous actually.
I mean, assuming cro-moly/Al framesets, how much does it REALLY cost to produce a piece of 19th/20th century technology?

I bet the manufacturing costs of a shimano XTR RD is about $10/unit. WTF do they sell for 18X that price?

So, cool...why don't you just start your own bike company and under-cut the competition?

I'm sure you'll have plenty of customers lining up to buy your full carbon, DuraAce comparable bikes for $150. :rolleyes:

I didn't realize there were so many future entrepreneurs and budding Warren Buffets in this forum.

Around here (CA), it takes $400.00 to get up to 'Alivio' level components. So you are just not going to get any kind of serious wheels for $269, or $309. Got to Wal Mart, you can save over $100.00 if that's what you want. Do you want a bike, or a good price? That is the question. bk