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Why are Giant bikes so competitively priced?

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Why are Giant bikes so competitively priced?

Old 01-22-20, 02:52 PM
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aabb
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Why are Giant bikes so competitively priced?

I'm new to the biking world, and in my search journey of the Bianchis and Orbeas and etc., I have realized how competitively priced Giant bikes are. I heard they own the factories that many of those other brands get made in. But are there any other reasons for this price point? Am I sacrificing anything, for instance, by getting say a Giant Revolt Advanced over an Orbea Terra or those other flashier brands with more history?

As usual, thanks in advance for any input!
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Old 01-22-20, 02:58 PM
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You pointed to one factor, more vertically integrated than other brands.

A second factor might be lower margins on their own brand, since there are additional manufacturing-level profits on the frames for which they are source.

Someone within the industry with first hand knowledge could speak authoritatively. I'm simply speculating.
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Old 01-22-20, 03:05 PM
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More history? Orbea? I don't know. I personally think everyone is pretty much starting from go. Giant, Trek, Specialized, even Raleigh, these bikes are nothing like what they once were. That is neither good nor bad, it is simply what it is. I just looked at your Revolt and I'm sure its comparable to anything else in it's price class. I prefer the seatstays make it all the way to the top tube though. That's just me. You do you. It's all good. As long as you pay at least $700 (list) for a new bike you're probably ok. What model of Trek Domane matches that Revolt? I'd look at it were I you. FWIW.
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Old 01-22-20, 03:08 PM
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They’re the biggest bike company in the world. It’s economies of scale writ large. They probably pay Shimano or Schwab’s a lot less per derailleur or tyre than most other manufacturers, and so can afford to price their product accordingly.
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Old 01-22-20, 03:15 PM
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Originally Posted by Leisesturm View Post
More history? Orbea? I don't know. I personally think everyone is pretty much starting from go. Giant, Trek, Specialized, even Raleigh, these bikes are nothing like what they once were. That is neither good nor bad, it is simply what it is. I just looked at your Revolt and I'm sure its comparable to anything else in it's price class. I prefer the seatstays make it all the way to the top tube though. That's just me. You do you. It's all good. As long as you pay at least $700 (list) for a new bike you're probably ok. What model of Trek Domane matches that Revolt? I'd look at it were I you. FWIW.
I thought the Trek Domane is not a gravel bike? But having read through the Domane's product description they do say it is intended also for gravel. Very interesting.

I am not sure which Domane model matches the Revolt Advanced 2 (Im in Canada). I looked at the Domane SL 4, but i has 10 speed and Tiagra (I believe 105 is better than Tiagra?). I have to look at the Domane SL5 to get 105 and 11 speed, but it costs $3800 (vs. $2800 for the Revolt Advanced 2).
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Old 01-22-20, 03:21 PM
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Originally Posted by Leinster View Post
They’re the biggest bike company in the world. It’s economies of scale writ large. They probably pay Shimano or Schwab’s a lot less per derailleur or tyre than most other manufacturers, and so can afford to price their product accordingly.
+1

Economies of scale.

I am not a huge Giant fan and a lot of people aren't but a lot of people associate smaller producers with better products. This isn't necessarily the case. If you can get what you need on a Shimano-equipped Giant for not a lot of $ then there's no shame in that! They're really great bikes! Don't listen to your buddies riding Euro brands rocking Campagnolo components, they're not better, just smaller and different.
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Old 01-22-20, 03:38 PM
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I've always heard but never positively confirmed that Giant makes all of its own carbon frames and that they make the frames for a variety of other manufacturers. If true that would cut some cost.

As to the question in a follow-up post to the OP about the new Trek Domane SL or SLR being or not being a gravel bike, perhaps the question comes up as the new bikes will take up to a 38mm tire.
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Old 01-22-20, 04:09 PM
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Giant's carbon technology (r/d, production methods, etc.) is second to absolutely no one's.

As others have pointed out, economies of scale come into play as well, in two senses. First, Giant produces massive numbers of frames, not only for their own brand but for many others, including many of the 'cachet' names. For example, the Treks that have been suggested to you as alternatives will have frames made by ... Giant, for Trek.

Second, as pointed out also here, economies of scale mean that Giant gets preferential supplier pricing from the likes of Shimano for components.

The result: if you like a particular Giant bike, and it fits you, you lose absolutely nothing at all by going with that rather than a competitor's equivalent, and you will typically pay significantly less.

Disclaimer: I have only a very small dog in this fight. My two main bikes are Specialized, but I do own an older (2005) Giant mtb that I still use throughout the summer. It has been and still is a great bike. I like Specialized, but wouldn't hesitate to buy another Giant bike if it was right for me.
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Old 01-22-20, 04:30 PM
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Originally Posted by badger1 View Post
Giant's carbon technology (r/d, production methods, etc.) is second to absolutely no one's.

As others have pointed out, economies of scale come into play as well, in two senses. First, Giant produces massive numbers of frames, not only for their own brand but for many others, including many of the 'cachet' names. For example, the Treks that have been suggested to you as alternatives will have frames made by ... Giant, for Trek.

Second, as pointed out also here, economies of scale mean that Giant gets preferential supplier pricing from the likes of Shimano for components.

The result: if you like a particular Giant bike, and it fits you, you lose absolutely nothing at all by going with that rather than a competitor's equivalent, and you will typically pay significantly less.

Disclaimer: I have only a very small dog in this fight. My two main bikes are Specialized, but I do own an older (2005) Giant mtb that I still use throughout the summer. It has been and still is a great bike. I like Specialized, but wouldn't hesitate to buy another Giant bike if it was right for me.
Being huge means they have a vast dealer network which means multiple outlets in each market keeps pricing honest and competitive.

Here in Spokane, mid sized NW town, there are 3-4 shops I can think of selling Giant.

There are zero Ridley, BH, Cube, Canyon, or Willier dealers (that I know of) and only one shop carrying BMC, OPEN, Marin, Norco, and Rocky Mountain. Giant makes frames which will compete with any of those. They just lack the pinache of a boutique-ish brand.
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Old 01-22-20, 04:37 PM
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Volume.
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Old 01-22-20, 04:43 PM
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I bought a Giant because they had what I wanted. I was about ready to give up when I found a very entry level Giant ATX lite. I put some Jones H loop bars on It and can't say enough good about it. I would have bought a trek, but I didn't want suspension. I'm glad it was very affordable.
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Old 01-22-20, 05:37 PM
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Originally Posted by baldilocks View Post
I bought a Giant because they had what I wanted. I was about ready to give up when I found a very entry level Giant ATX lite. I put some Jones H loop bars on It and can't say enough good about it. I would have bought a trek, but I didn't want suspension. I'm glad it was very affordable.
LOVE THE H BAR. I have them on my Jones Plus LWB and they're great! Awesome places to put things like lights and bells.
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Old 01-22-20, 05:44 PM
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The only thing I have to add is look carefully at the Specs when doing any comparison. This can be very enlightening to see where costs are reduced in the total price.
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Old 01-22-20, 06:55 PM
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Originally Posted by davei1980 View Post
+1

economies of scale.

i am not a huge giant fan and a lot of people aren't but a lot of people associate smaller producers with better products. This isn't necessarily the case. If you can get what you need on a shimano-equipped giant for not a lot of $ then there's no shame in that! They're really great bikes! Don't listen to your buddies riding euro brands rocking campagnolo components, they're not better, just smaller and different.
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Old 01-22-20, 08:01 PM
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Like everyone else has said, it's because they're the biggest bike manufacturer in the world, and the economy of scale comes into play. Also, and this is from personal experience, they seem to make entry to mid-level bikes that have really excellent frames but mediocre wheelsets, preferring to make their own wheels most of the time.

If you're interested in competitively priced bicycles from huge Taiwanese manufacturers and do not live in North America, you can always check out Merida as well. Their bikes are very comparable to Giant bikes in terms of market competitiveness and they own a 49% stake in Specialized, hence their absence from the North American market.
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Old 01-22-20, 09:59 PM
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Don't know about Canada but before Xmas I looked at 2 Liv's which is Giant's women's line and ended up with a cannondale. The "equal" bike was 50.00 more for the cannondale but the overall component spec of the Giant wasn't as close. On the kid's bikes it wasn't even a conversation; bought 2 of their kids bikes in the last 2 years and they suck for the money but the kid wanted the colors and I didn't really want to argue in the store when the prices were all about equal. Xmas this year there were no kids along and they got Cannondales which were way better equipped and lighter. I'm actually incredibly distrustful of the fact that Giant doesn't list the weights of their bikes but they seem to have good reason not too, they seem to come out heavier. They use the same lame excuse for not revealing the weight for the kids bikes which don't come in frame sizes as they do for the adults. I've owned several Giants and am considering a carbon framed road bike for the wife but that has more to do with color then being any form of special value.
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Old 01-22-20, 10:37 PM
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As people have said economy of scale but also using cheaper parts helps out a lot. Giant I think are pretty good at cutting corners and using some pretty low grade stuff on a lot of bikes. One big way a lot of manufacturers are doing this and Giant is no exception is house brand components which can sometimes be OK but usually are cheaper and heavier.

As far as what @Russ Roth was saying: Anyone who lists bike weights is generally lying to you in some way. Usually the bike is missing some key components to make it functional or it is the lowest weight they were able to get it and production is not near it. Now some companies are relatively close but I don't trust much unless I put it on the scale. Rodriguez Bicycles out of Seattle actually had a great story about that: https://www.rodbikes.com/articles/we...-a-minute.html. Always makes me laugh. Also they make a verified 13.5 pound steel bike which isn't too shabby.
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Old 01-23-20, 01:30 AM
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Giant as a company may be huge but as a bike brand in US bike store retail, I’m sure they are third or so. They also don’t spend as much effort being cool or telling people the next thing to want.

You could also make an argument they’re kind of derivative:
https://www.bicycleretailer.com/nort...t#.XilLVSSIbDs
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Old 01-23-20, 01:43 AM
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I'm not surprised no one's mentioned the elephant in the room: Giant isn't special, not even particularly interesting. They don't have over a century of Italian heritage, nor are they vastly technically superior. They look pretty much like every other bike out there.

They're just good - like a Volvo.

If they weren't "competitively priced" (which also means, "not the best"), they wouldn't sell.
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Old 01-23-20, 02:16 AM
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Originally Posted by davei1980 View Post
+1

Don't listen to your buddies...rocking Campagnolo components, they're not better, just smaller and different.

Campy is in fact better.
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Old 01-23-20, 02:17 AM
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Originally Posted by ridelikeaturtle View Post
I'm not surprised no one's mentioned the elephant in the room: Giant isn't special, not even particularly interesting. They don't have over a century of Italian heritage, nor are they vastly technically superior. They look pretty much like every other bike out there.

They're just good - like a Volvo.

If they weren't "competitively priced" (which also means, "not the best"), they wouldn't sell.
That's their thing, though. Their bikes are just like Toyota Corollas: they're not particularly innovative or exciting, but they offer decent quality for a slightly better price than many competitors, they're readily available in a lot of markets and they work just fine. To me it's not really an elephant in the room; it's their whole brand identity. Decent, non-exciting bikes for a reasonable price.
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Old 01-23-20, 05:41 AM
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I do not know what makes them so special either but I been taking serious consideration on getting one as my next bike.
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Old 01-23-20, 06:32 AM
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Perhaps this is the main thing that novice riders think about when buying a bike, because sometimes you have to carry it on yourself, especially if it will break frequently. It is believed that an expensive bike weighs less, and manufacturers of cheap devices optimize costs, from which their weight “suffers”. If a bicycle is already quite cheap (in the bicycle environment it is commonly called “ashanbikes”), then most likely it will not be reliable, durable and maintainable. On the other hand, on a relatively expensive bike, it may also be difficult to pick up spare parts.
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Old 01-23-20, 07:14 AM
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Originally Posted by tombakerim View Post
Perhaps this is the main thing that novice riders think about when buying a bike, because sometimes you have to carry it on yourself, especially if it will break frequently. It is believed that an expensive bike weighs less, and manufacturers of cheap devices optimize costs, from which their weight “suffers”. If a bicycle is already quite cheap (in the bicycle environment it is commonly called “ashanbikes”), then most likely it will not be reliable, durable and maintainable. On the other hand, on a relatively expensive bike, it may also be difficult to pick up spare parts.
This post is close to incomprehensible. FWIW, I don't think even novice cyclists expect to spend much time carrying their bikes. I've never seen or heard the term "ashanbikes." Welcome to BF, I guess.
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Old 01-23-20, 07:34 AM
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It seems to me that Giant spends a lot less money on marketing than Specialized, Trek, Cannondale, Bianchi, etc. This keeps their cost down. I very rarely see advertisements for Giant. I remember back when watching the Tour de France it seemed like it was the Tour de Trek. Now, on the 'net I regularly see ads for Canyon, probably because I've watched GCN a few times. Advertising and other marketing is very expensive. The bike reviews in magazines and on many websites are often payed promotions. I don't see a lot of reviews for Giant products.

Consider that in January of 2019 Specialized spent over $700K to secure the Roubaix trademark rights from Advanced Sports Enterprises. Prior to this Specialized used the trademark under license, probably paying some amount for each Roubaix sold. This expense was a business decision and likely deemed to be in Specialized's best interests. If the $700K trademark expense was amortized at $10 per bike, this would take 70,000 bikes to recoup. Profitability is important in business. In order to be profitable these expenses are passed on to customers as higher sales prices. Specialized then has to market their bikes in order to create the impression that their Roubaix is worth more than a comparable Giant.

It's about building product 'status' through marketing, and the charging the customer for the marketing.

Is a Pinarello Dogma Mucho Fantastico really better than a Giant TCR with the same components? Some washed up ex-racer may write a magazine review and state that it's more "responsive," "stiffer," "provides better road feel," or something. But he will have been paid to write that statement. Note that such statements are subjective and that real data; transient response time, stiffness measurements, vibration data, etc. are never presented.

Giant has reason to limit marketing their own products. Since they manufacture the many of their "competitors" bikes they could hurt themselves. Giant is in an unusual position whereby it appears to compete against itself. Giant, like many businesses, probably has employees whose job is to understand the bicycle market and develop a strategy that maximizes their profits.
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