Thanks for sharing it
AK.
I think that his statements are pretty accurate and they make business sense, but to me personally, that translates to lower/sometimes mediocre quality from China and nowhere near what the same $$ will get you in the way of a vintage machine.
Geez, when did new $300-$1000.00 gaudy flashy decals on a non-handcrafted machine become a "bargain" lower-end price ? That just makes me appreciate a vintage steel bike a whole lot more... 
:
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In 2002, he expanded into high-end road and triathlon bikes, but these days people are less likely to spend the $3,500 on those bikes. Given the downturn, he is going to back to what he calls his "bread and butter" customers, the recreational cyclists who buy bikes priced between $300 to $1,000.
"Those prices might be less sensitive to the economy," he said.
Besides, he would rather stock 200 bikes at $500 apiece than 50 bikes at $2,000 each. Lower priced bikes are easier to move and keep cash coming in..."
Lower priced bikes also keep cash coming in because they do not last as long as a vintage steel road bike.