Originally Posted by
3alarmer
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...because the people that make and sell them have targeted an income demographic that is happy to pay whatever the going price seems to be. As has already been state, not all modern bikes are expensive. Only the ones marketed to a certain, relatively small, user demographic. That small segment of the marketplace has followed the economics of all luxury products. I can find sunscreen that costs quite a bit, too, relative to the regular stuff.
What the discussion reinforced was that expensive bikes are that way because they are expensive to build. Halo bikes are more than just luxury products they also have a performance aspect to them which helps justify the cost to the buyer. There will always be premium products in every category for those who prefer the best for various reasons, whether it is for status amongst their peers, the self satisfaction of accomplishing a goal or the appreciation of the performance advantages. Cycling is great because it is one of the few interests where the top tiers are still affordable for the average middle class person. Try that with cars, motorcycles, audio/visual equipment, watches and so on.
Your suncream example is silly and not relevant as this is not a performance based product but rather just a branding exercise. It would be best not to discuss what era of cycling was heavily based on branding alone.