You make an interesting remark about frames made in the USA being overpriced. I suppose 'overpriced' is in the eye of the beholder to mix my metaphors but I do think one might benefit from looking at how I, and some other US pro builders I know, set prices.
I can only speak for myself here - I don't want this to sound defensive as I don't feel that way but I charge more than many, and less than some, for my work and I don't apologize in any way for that. I feel that my time and experience is worth something. I've been building full time and professionally since 1989 and in that time have designed and built many thousands of bikes - customers range from average weekend warriors to guys that rode my work in the Tour de France. I feel my work is well proven and a very good investment.
When setting the prices for my work I don't really look at what others charge as there will always be someone willing to work for free.........instead I look at how much time I feel I need to build the best bike I can make, how many of those I can build in a year, and how much money I need to make in a month or year to have a simple middle class life. At that point its just a matter of doing the math to see how much a bike needs to sell for to have it all add up. If that number is too big for some I more than understand - there's a lot of stuff I'd like to buy but can't afford. At the same time I don't feel that someone with decades of time at the bench, thousands of bikes under riders and a very solid reputation should have to take a vow of poverty to do the work. If the market won't bear the price I need to charge to make a fair and simple living then I will close the doors and do something easier that pays more.
It's funny - we tend to talk out both sides of our mouths on stuff like this........myself included. I want the best stuff I can buy and I don't want to pay more than I have to. At the same time I don't want to contribute to the endless spiral of folks, in the USA or abroad, that work far too long and hard for too little. I remember years ago on a different cycling forum there was a poll asking how much money folks thought an experienced full time builder should make and it was a big number that I can only wish I made - while at the same time I was fielding calls from folks asking if I'd give them a deal. These things are fundamentally opposed. We want to respect craftsman and feel they deserve a solid income and then want nice handbuilt stuff for little money.
For the sake of illustration here's a down and dirty breakdown of the costs involved in that $1400 frameset -
Average steel stuff - tubes, lugs, small parts.......about $350
Paint - the cheapest is powder at say $250 - $300 while nice wet paint is closer to $500 - for sake of easy math lets call it $350
Expendables - brazing and welding supplies, emery cloth, flux...etc. - $50 per frame (this is low but an easy number to work with)
So in simple 'cost of goods sold' we have a very rough number of $750 which leaves, in your $1400 example, $650 to cover rent, power, insurance...etc. In other words the fixed and variable overhead costs. After those things are paid for the builder needs to pay himself for the labor to build the frame from the remainder. If it's tigged and the guy is well tooled and very fast and organized we are talking 6-7 hours......if it's lugged we are looking at 15 ish in most cases. So think about the hourly rate the builder will make with the money left over from his $650 that didn't go to overhead. Is he making $3/hr? If he's lucky.
I will end with this and you all can make of it what you will - support your builder or he will not be able to keep the lights on and be around long enough to teach the next round of builders that will take their place. It's as simple as that. I don't say all of the above to try to make you feel guilty about not doing business with someone in the USA but instead I'd hope that everyone would look at the business and industry they love and what role they themselves play in it.
The soapbox it free. Thanks for reading.
dave