Oh good Lord, you guys. Economies of scale do not apply if you use different materials/designs - that is an entirely different product. Economies of scale apply only when apples to apples are used, as far as I'm concerned. Wal-Mart may make a cheaper t-shirt, but it's always too short in the torso and doesn't last as long. That is not the same as the t-shirt I buy at Target as the fit is different and the materials, while similar, are not the same.

Now if my LBS was selling the same Windsor Fens I'm looking at, THAT would be apples to apples. I must say that, after some research, the Wal-Mart bike, while still a good deal, is not as good of a deal as when I first posted the idea. Bikes Direct fills an important void in between big box bikes and LBS bikes - there's a price point in there, and BD took advantage of it. More power to 'em.