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Old 04-24-06, 12:57 PM   #1
ralphy
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bike component price breakdown - Please Help!!

hey guys/gals,

I have a question i was hoping you might be able to help me with.. it's for part of a business project i'm doing (business strategy for a bike company) and unfortunately i'm not that much of an expert in the field!!

Basically it doesn't have to be very detailed or completely accurate but i was wondering if anyone could guess at the precentage price (when manufacturing) for each component of a low-end road bike with no suspension.

Basically the categories below will do fine i think, it doesnt include everything but hopefully the main bits:

handlebars
frame tubing
forks
pedals, chain, gears
saddle and seat post
mud guards and reflectors
wheels
tyres and inner tubes

so for example, the frame may account for roughly 20% of the total cost (i'm not really sure..)


If anyone could help out i'd be really thankful, and i can try to clarify if this doesn't make sense.

Thanks a lot!!

Ralph
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Old 04-24-06, 01:27 PM   #2
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One way is to do price checks on all these items as though you were building your own bike. That would give you a rough idea but would assume a bike manufacturer is paying the same profit percentage on each item he(the manufacturer) buys to assemble his bike. I very much doubt that to be the case as some items are more easily manufactured than others and some items will have more pricing competition. These variations may/may not be reflected in the retail prices of these items.

You've left off quite a bit that also goes into the price of building a bike: overhead (labor, insurance, taxes, utilities, rent, advertising, marketing, shipping, profit, capital expenses, misc. expenses)

Another way to get help is to go to the source. On the Single-Speed/Fixed Gear forum there's a poster named Kogswell who actually makes/sells some cool bikes. I believe there are some other bike builders that ocassionally post also but you may just go to their websites and get their e-mail addresses. Don't ask for real numbers but they may be willing to give you the percentages you need.

While component pricing won't change, frame materials and methods of frame construction greatly affect the price of the frame which would then change the percentages. TIG welded aluminum frame will be cheaper than a silver brazed steel frame or a steel frame with investment cast lugs.
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Old 04-24-06, 01:42 PM   #3
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thanks a lot, you've made some good points there. My plan was to look at component prices on the internet as well, but i just wanted a rough estimate to compare to.

Thanks a lot though, you've brought up some things for me to think about
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Old 04-24-06, 03:16 PM   #4
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Maybe you should do your own research.
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Old 04-24-06, 05:50 PM   #5
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i am, i was just asking for some help. if you want to help then you reply, if not you don't, rather than being obnoxious
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