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Road Cycling “It is by riding a bicycle that you learn the contours of a country best, since you have to sweat up the hills and coast down them. Thus you remember them as they actually are, while in a motor car only a high hill impresses you, and you have no such accurate remembrance of country you have driven through as you gain by riding a bicycle.” -- Ernest Hemingway

Too expensive

Old 05-05-05, 02:10 PM
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Too expensive

I just bought a $1100 roadbike and have the sudden realization that bicycles are overpriced.

Its my opinion that no bike should cost more than $1000. I think the R&D costs are exaggerated and overplayed as a reason to justify the costs. The explanation of engineers working magic on aluminum or carbon is nonsense. It can't be that difficult. Once designed, the manufacturing process amounts to welding together 10 pieces of metal tubing. Throw in components, wheels, tires, seat, bars, all of which can be made in China for cheap. I figure it should never cost more than $500 to make a bike.

When I go to Dicks sporting goods and see 30 mountain bikes all <$400, some with full suspension, aluminum frames, and 27 speeds, I wonder how a >$1000 roadbike can be justified. Seriously, the higher quality bikes most of us have bought are better, but not THAT much better.

If you look at a $600 bike vs. a $2000 bike you see bits of carbon fiber, smoother shifters, and slightly lighter weight components. Its certainly better. There is no way its $1400 better.

So, how much R&D money does Trek or Cannondale spend? How much does it really cost to make a bike? Why do we pay so much? Afterall, its just a bicycle for cripe's sake.
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Old 05-05-05, 02:12 PM
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You forgot marketing and sponsorship to go along with research and design...
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Old 05-05-05, 02:23 PM
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Originally Posted by scooper836
I figure it should never cost more than $500 to make a bike.
WTC?? Even that is too high.Just go to wallymart or trageet and get one for $59.99
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Old 05-05-05, 02:24 PM
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You probably have a point, although you have to remember the higher up the scale you go, the less volume they are able to sell. Campy Record Ergo shifters probably cost the most to develop, yet a tiny fraction of all riders actually use them.

I bought a Giant TCR2 last week for $1000 and feel I got a pretty good deal. Awesome frame and pretty good components. They definitely cash in on the fact that cyclists tend to be a pretty passionate bunch and good supporters of LBS's, which has been unfortunately lost in so many other sports.
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Old 05-05-05, 02:26 PM
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I think you solved your problem. If you don't want to buy an expensive bike, buy a cheap one.
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Old 05-05-05, 02:28 PM
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Originally Posted by scooper836
When I go to Dicks sporting goods and see 30 mountain bikes all <$400, some with full suspension, aluminum frames, and 27 speeds, I wonder how a >$1000 roadbike can be justified.
Yeah, those full suspension sub $400 mountain bikes are sweet!
And all those speeds for sub $400! How do they do it? Thats like $15 a speed.

I can't believe I spent so much on my gunnar singlespeed.
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Old 05-05-05, 02:28 PM
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for what you get on the $1100 Trek(i assume its the 1500?) i feel its a pretty good buy

however road cycle components are REALLY what get you and your amazed at how high the prices on some of that stuff is
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Old 05-05-05, 02:31 PM
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Interesting theory. You should start a low-cost bike company and get rich.

Or file a class-action suit for restraint of trade and price fixing.

On the other hand, it could just be "supply and demand" and/or what "the market will bear"

-Z (Econ-Dog Spot)
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Old 05-05-05, 02:31 PM
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Originally Posted by scooper836
Afterall, its just a bicycle for cripe's sake.
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Old 05-05-05, 02:37 PM
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yeah.. it is only a bike after all.. a bunch of tubes and some rubber..
Kinda like a diamond is only a piece of coal.. Thats how free markets work. Supply and demand.. as long as you and I pay that kind of money for a bike, thats how much they are gonna cost.. Thats life.

On the other hand, no one has even gotten rich in this industry.. if a company is making money it is from the junk around bikes (accessories) rather then the bikes themselves.. Go figure..
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Old 05-05-05, 02:47 PM
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Don't forget this:
The materials manufacturer gets a cut.
The component manufacturers get a cut.
The frame manufacturer gets a cut.
The bicycle company gets a cut.
The distributors get a cut.
The shipping company gets a little piece.
The bike store gets a cut.

The pie is getting sliced pretty thin right there.

There are bikes and there are bikes. Why does a Mercedes cost more than a Hyundai? They are both cars?

There is some premium being paid for the brand name. However, there is extra quality in there too. The honest truth is that in road bikes, the average serious recreational roadie is riding the automotive equivalent of a middle of the pack, or better, formula 1 car. We are, for the most part, riding full blown professional level equipment. Try that with your car and see how much it costs.
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Old 05-05-05, 02:55 PM
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I think we have taken scooper836 to the wood shed enough ?
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Old 05-05-05, 02:56 PM
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I dunno, there haven't been that many condescending posts about basic economics.
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Old 05-05-05, 02:59 PM
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Maybe I'm just being to sensitive in my old age.......had a long day
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Old 05-05-05, 03:00 PM
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I was just making an observation. In all honesty, this board is downright polite the vast majority of the time. Not many e-thugs, which is a different environment than what I'm used to on another board I waste slow time on.
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Old 05-05-05, 03:00 PM
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I think as many things . . . the price of a bike grows in an exponential manner with performance. Plus, as already stated, it's what people are willing to spend.

I think people need the will to spend less : ) ... cuz I'm looking for a road bike.
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Old 05-05-05, 03:02 PM
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maybe it will keep the ebay prices down...
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Old 05-05-05, 03:05 PM
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Econ 101 anybody? Where supply=demand ---equilibrium.
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Old 05-05-05, 03:47 PM
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Really, if you look at what your money is buying, it seems you get more for your dollar now than you did 20 years ago. I think cycling, especially competitive cycling, shares something in common with any speed sport. Speed costs money and you have to ask yourself how fast do you want to go.
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Old 05-05-05, 03:59 PM
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Originally Posted by jsharr
Really, if you look at what your money is buying, it seems you get more for your dollar now than you did 20 years ago. I think cycling, especially competitive cycling, shares something in common with any speed sport. Speed costs money and you have to ask yourself how fast do you want to go.
Maybe, but the engine is only able to pump so fast, and you hit a plateau no matter how light the bike gets. A $10,000 bike can't be all that much faster than a $2000 bike, so we are paying for something more than speed.
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Old 05-05-05, 04:39 PM
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So, perhaps you've identified a market opportunity. Why don't you max your credit cards and mortgage your house, to start your own company. You can market your own "LT500" (less than $500) line of bikes. You'll get rich, dude!

Don't forget to include an allowance for advertising, warranty returns, R&D, and oh yeah, liability insurance (have you priced that lately??).

Seriously...get a clue, or take a course in basic economics. If you think anybody is getting rich from selling $1100 bikes, you're mistaken.
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Old 05-05-05, 04:40 PM
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I once heard an estimate that the actual "cost" of manufacturing a dishwasher was about $60. Keep in mind that this was about 20 years ago. I asked why they sold for $400+ and was told, "They know you aren't coming back for another one for 10-15 years."

Cost often is not a reflection of "Value."

I managed a hotel once and needed an 18' deep and 3' wide hole dug to create a foundation for a large sign. The contractor who drilled the hole was on the property for less than an hour and I had to pay him $2300. When I remarked on this, he literally grabbed a shovel off his truck tossed it at my feet and said, "Dig ya another one."

Cost is often not a reflection of value.
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Old 05-05-05, 05:48 PM
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Welcome to the family, scooper836.
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Old 05-05-05, 06:02 PM
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Originally Posted by jeff800
Maybe, but the engine is only able to pump so fast, and you hit a plateau no matter how light the bike gets. A $10,000 bike can't be all that much faster than a $2000 bike, so we are paying for something more than speed.
True. You get more for your $$$ at the low end. As you move up, the return on the dollar gets smaller and smaller. Then it gets to the point where it is non-existant.
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Old 05-05-05, 06:03 PM
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A $1,000 moutain bike is generally a higher quality bike than a $1,000 road bike. Maybe because...

-mountain bike frames and components are made in far larger quantities than road bike stuff

-mountain bikes sell both to fanatics and to millions of average folks who just want a sturdy, affordable bike

-road bikes sell to fanatics, who don't mind paying a LOT of money for something a little lighter, or a little more "high tech"

-STI. STI adds AT LEAST $100 to the cost of a $600 bike, compared with downtube shifters on a road bike, or gripshift shifting on a mountain bike. At the Dura Ace level, STI adds closer to $300 to the price of a bike. A lot of money for something that does not shift as well as a $20 shifter, nor brake as well as a $20 brake lever. The worst thing about road bikes as a class.

But, many roadies in Houston would never complain about the cost of the bike. They are wearing $200 shoes, a $100 helmet, a $300 "Look Like Lance" uniform, and have their bike up on the roof of a BMW. For the "fashion" roadies, the price of the bike is just the ante into the world of high style.

Meanwhile, the mountain bike guys and the BMX guys are wearing cut-off jeans, tee-shirts, and tennis shoes. THEIR sort of bike riding is cheaper all the way around.
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