Originally Posted by
CliffordK
But it has everything to do with it.
Say the 10R frameset is 100 grams heavier than the 11R frameset. Some people will pay extra for that, just like people will pay extra for the Dura Ace components just because they are marketed as "top of the line".
I have noticed that prices are a bit wonky.
Say you have a bike with component group sets A, B, & C.
Base Price A
B = Price of A + 100% of low retail price of B groupset.
C = Price of B + 100% of low retail price of C groupset.
One would think one would calculate the cost of C as the cost of the frame + wholesale cost of components, but it just doesn't work that way.
I assume the same is true in the auto industry when little upgrades get really expensive. One of the last pickups Dad bought didn't have a cigarette lighter outlet because he couldn't justify the $100 or so extra cost. How the world has changed with a plethora of 12V accessories.
Used bikes often are hit by an odd issue where the value of the complete bike drops quicker than the value of the components, quickly leading to a situation where the individual components are worth more than the complete bike.
It is called price pointing and value pricing. You don't charge based on what it costs to make a bike. You charge based on what people are willing to pay.