Plus it's an increasingly global market out there. In some areas of the US and the world, the economy is doing pretty well. Enough so that there are buyers out there with the discretionary cash to purchase luxury goods.

Even so, many of the people I sell to compare a refurbished original or retro-mod to what they can buy for the same price in an LBS. You'll get a much nicer $800-1200 bike from me than from a store.