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Old 08-19-07, 02:08 PM   #1
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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!
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Old 08-19-07, 02:30 PM   #2
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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.
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Old 08-19-07, 02:32 PM   #3
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try buying a bike in Canada, and you will soon discover your prices are VERY INEXPENSIVE.
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Old 08-19-07, 02:42 PM   #4
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Good grief, I had no idea the Trek 7000 looks like THAT now.
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Old 08-19-07, 02:57 PM   #5
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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
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Old 08-19-07, 03:02 PM   #6
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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

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Old 08-19-07, 03:06 PM   #7
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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?
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Old 08-19-07, 03:16 PM   #8
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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.
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Old 08-19-07, 03:21 PM   #9
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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:D...ical_graph.svg
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Old 08-19-07, 03:39 PM   #10
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$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.
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Old 08-19-07, 04:07 PM   #11
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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.
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Old 08-19-07, 04:09 PM   #12
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I'm pretty damn sure it costs like $50 to make a bike.
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Old 08-19-07, 04:26 PM   #13
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I'm pretty damn sure it costs like $50 to make a bike.

When you build bikes for $50.00, call me.
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Old 08-19-07, 04:35 PM   #14
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Originally Posted by Bikepacker67 View Post
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?
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Old 08-19-07, 04:38 PM   #15
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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.
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Old 08-19-07, 04:48 PM   #16
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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/...&categoryid=61
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Old 08-19-07, 04:55 PM   #17
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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.
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Old 08-19-07, 05:02 PM   #18
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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.
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Old 08-19-07, 05:07 PM   #19
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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.
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Old 08-19-07, 05:09 PM   #20
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$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.

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Old 08-19-07, 10:06 PM   #21
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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/...&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?
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Old 08-19-07, 10:13 PM   #22
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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.
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Old 08-19-07, 10:35 PM   #23
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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.
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Old 08-19-07, 10:57 PM   #24
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"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.
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Old 08-19-07, 11:43 PM   #25
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My sister told me there are no american-made bicycle tires?
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