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Economies of Scale in Bicycle Manufacture?

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Economies of Scale in Bicycle Manufacture?

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Old 09-19-08, 01:35 PM
  #26  
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Originally Posted by lukeC
This is actually the crux of my question. Is this price for a solid trustworthy mass-produced bicycle acheivable?
Did you read the rest of my post? It tells you how to answer to that question.

--------

Supposing I said "yes" or "no". What value does my answer have? Are you going to take a copy to your funding source thinking that would convince them? Of course not. Are you gong to start a business based on my answer? You'd be a fool to try.

Yes it is possible to obtain 'a bike' for £50. Will it be the bike you need? I have no idea, nor does anyone else since you haven't defined the bike you need. "solid trustworthy mass-produced" effectively means nothing.

If you're serious about this, get off your butt and do some homework.
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Old 09-19-08, 05:04 PM
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Originally Posted by lukeC
This is one of the things I'm trying to understand. if you remove all the markups and profit margins etc. what sort of price could you source a basic bicycle for?
I don't think anyone here has done anything like this. You'd have to find someone who works in the industry and is willing to reveal trade information along those lines.

However, I suspect you will find fairly quickly that this is not a cost-effective way to promote cycling. I do not believe that price is the largest obstacle for prospective cycle commuters, especially when compared to the costs of owning and driving a car -- or even using public transport.

If anything, better biking facilities -- such as secured parking spots and bike paths -- would probably do much more, pound for pound, to encourage bike commuting.

Are you even an elected official or working on someone's staff, by the way?


the idea was that it would be ongoing. (assuming that the subsidy didn't need to be too great).
I have a bad feeling that since there are 2 million people in London, if you're just going to give the bike away for free it's gonna be a big subsidy. For example, 100,000 bikes @ £50 is already £5,000,000 -- and that covers only 5% of the population.

So how do you distribute that fairly? A lottery? Where's the income cutoff? Should someone who makes £75,000 per year just be given a bike? How do you prevent a poor person from selling it for £50 or £100 or more, since you won't be able to give everyone a bike? How many bikes per household?

And again.... In many ways, the Velib system are a superior strategy. The sponsor pays the costs; both locals and tourists can use them; you have a maintenance and replacement plan; it's only used by the people who are interested in it. Give people stuff for free, and for every one person who uses it, 2 will sell it and 3 will let it rust.
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Old 09-22-08, 08:00 AM
  #28  
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Thanks for the replies. Some responses to questions posed.

1. I'm just a guy livign in London with no council affliations wondering whether a Velib or other system in London would work.

2. At this stage, I'm just trying to understand whether this crazy idea of practically giving away bikes is in any way feasible on pricing.

3. What sor o f bike? I mentioned that above, something like a Post-Office Pashley or similar Post Office Bike 1 speed or 3 speed perhaps.

4. Shipping Costs versus Assembly? huh, well someone would need to put them together, and that would be either before shipping or on arrival. Whatever would be cheeapest. But someone wiould be paid to put them together. it would be up to the council.


5. yes london is a bit large, but you wouldn't expect all 2M to want the same bike. And you probably wouldnt' give them away free, as most woudl just be re-sold or left to rust. The population woudl have to pay for them.

6. One Idea was to just organise it on a council level, as more of a 'mass purchase' via the council. ie could you find 100,000+ people in say Hackney city council who would pay £50 for a Pashley style bicycle? the council could possible just run it at cost price..?

7. It all sounds too hard. and I will probably just forget about it now..
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Old 09-22-08, 08:08 AM
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Originally Posted by lukeC
Thanks for the responses from everyone. The question is about the actualities of this idea (post):
https://www.bikeforums.net/advocacy-safety/465386-council-sponsered-cheap-basic-biccycles.html

I live in Hackney in London (UK) and had the idea of a community (or all of London) drive to purchase a whole load of basic bicycles, (ie < 100,000) for commuter use.

I'm trying to understand how impracticle / practical it would be.

i.e.Suppose London City Council wanted to offer a Budget Bicycle Scheme to all residents where the Coucil Sources a Standard Basic Bicycle (from somewhere?): The Bicycle would be hardy but simple. single speed (or SA-3sp), step through, basic steel frame, tough wheels, basket) say an updated Pashley Post Office Bicycle. (see pics attached).

Now if the council could source these bicycles for a cost of <£50 per resident. This would be a solid hardy bike, that would last. (compared with other cheap bicyles at Target/Halfords/Walmart/kmart)

And it woudl be at a price range that would undercut the current stolen bicycle market. (and hence put the theives out of business.)

is this a pracitcal idea?
how woudl one source a manufactureer / supplier for these bicycle?
As I suspected, another Socialist scheme.
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