Originally Posted by
Sy Reene
The R265 does look nice, but I don't understand why the frame-only costs the same as a fully built bike with Ultegra?
Materials, labor, and demand. While Lynskey is higher demand and production compared to some other Ti manufacturers, they're still a small company. When you produce lower amounts of product where you need to purchase raw materials, you pay more for those raw materials. Also, R&D costs get spread out over fewer sales.
You take the cost to produce, and equate that to demand. There are two intersecting curves where when you increase cost to the consumer, and demand falls, that when they meet you are yielding the most amount of revenue you'll get. Hopefully that income is high enough to sustain business operations.
In a nutshell, you charge what people will pay.