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Old 11-29-12 | 09:41 PM
  #93  
SlimRider
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Joined: May 2011
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From: Northern California

Bikes: Raleigh Grand Prix, Giant Innova, Nishiki Sebring, Trek 7.5FX

Originally Posted by Andy_K
But what determines the price point? Is it all cost of materials? Doubtful. Is it cost of production? Not the last time I brushed up on economics.

If you've got an aluminum frame with round tubes and an aluminum frame with "hydro-formed" tubes in all kinds of exotic shapes, the round one will cost less to produce, but that's not why it's at a lower price point. It's at a lower price point because consumers are willing to pay more for something with "hydro-formed" in the marketing materials. The exotic shape, if correctly designed, also happens to be the thing that's necessary for aluminum to compete with steel in terms of ride feel and strength.
Ah...Truly something to consider...
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