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Why are road components so expensive???

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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

Why are road components so expensive???

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Old 03-21-12 | 02:50 PM
  #151  
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From: Burnaby, BC
  • Shimano 105 Silver (5700) 10 Speed Rear Derailleur
  • Shimano 105 Silver (5700) 10 Speed Rear Derailleur. Weight: 221g (SS). Super light shift action. Compatible with 8, 9, 10-spd.
  • RRP C$61.68 Save 11.16%
  • RIBBLE PRICE C$54.79
  • Save 20% off baskets over C$55.13 and pay only
  • C$43.83 a saving of 28.93%
  • Shimano Tiagra 4600 10 Speed Rear Derailleur
  • Shimano Tiagra 4600 10 Speed Rear Derailleur. Offering pro-level features and high performance at a low price.
  • RRP C$52.50 Save 22.62%
  • RIBBLE PRICE C$40.62
  • Save 20% off baskets over C$55.13 and pay only
  • C$32.49 a saving of 38.10%
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Old 03-21-12 | 02:50 PM
  #152  
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Originally Posted by pallen
That's not really my point. I think there is a definite higher cost in R&D and production of the higher priced groups. Each buyer will have to decide if the value received from the higher priced item is worth his or her money. There are real differences. Its harder to see between this year's Ultegra and Dura Ace, but look at how far they've come in the last 7-10 years. Shimano and others havent been sitting around changing paint colors and adding sticker packages.

Also keep in mind that the higher priced parts sell considerably lower volumes, so they have to have a higher markup to compensate.
Good, those real, physical differences between the Tiagra and 105 is what I asked for. What are they? We have sealed pulley bearing, anodized surface for some parts, and a couple of more vague minor things. Not mentioned, and the most prominent in my opinion, is that 105 is all aluminum instead of some steel in Tiagra. What's your take on it?

105 is kind of standard for midrange or entry level bikes.
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Old 03-21-12 | 03:06 PM
  #153  
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Originally Posted by RecceDG
I dunno. My experience was entirely different.
...
Why? Universally "too expensive". Even though I could (and did) demonstrate that there was literally nothing that fit the gap between my stuff and the bone-stock OEM stuff, people would buy the broken-ass, junky, proven-to-be-garbage (but shiny!) $999 stuff all damn day (and then ***** about how ad the car sucked) rather than buy my quality stuff.

Sometimes the better mousetrap just doesn't sell.

DG
I've had similar experiences in stuff I've tried. What you're describing is a marketing and/or product problem. I was coming at it from the angle of once a market has been identified, it's better to be on the high-end of the price range (or my favorite, way above it and there's ways to make that possible) than on the low-end (think WalMart but even they're under a lot of pressure to raise prices).

Warning: boring marketing stuff below. These are just thoughts and not necessarily specific to this topic.

I'm guessing here, it seems like either the $999 group is the wrong market (bargain conscious) or the $2100 wasn't presented in a way that they understood. One of my marketing rules is sell it in a way that makes the cost go away. Lot's of ways to do that. A quick example is a car dealer wanting you to sit in the car within minutes of you walking onto the lot. They know that once you're sitting down you're not thinking cost. Another example is "testing" a multi-hundred dollar vacuum cleaner for the price of shipping (e.g. $15). They know once you have it at home and cleaning your house (meaning you unwrapped it, threw away the box and got the thing filthy) you're much less likely to pay to ship it back on time before the $500 bill comes. As an aside, one of the best inventions in the world is shrink-wrap. It's cheap and people will hesitate to return something where they've destroyed the shrink-wrap.

For items that aren't tied to a monetary benefit, they have to be sold like insurance (one of the hardest things in the world to sell). Look at any insurance commercial and all the successful ones have one common tactic. They try to scare the bejesus out of people. A famous marketer taught me that any savings benefit can be converted to an income benefit. When you can make the income and emotional benefits powerful enough, the cost goes away.

Cheers

Last edited by kleinboogie; 03-21-12 at 03:09 PM.
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Old 03-21-12 | 03:17 PM
  #154  
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Originally Posted by wphamilton
Good, those real, physical differences between the Tiagra and 105 is what I asked for. What are they? We have sealed pulley bearing, anodized surface for some parts, and a couple of more vague minor things. Not mentioned, and the most prominent in my opinion, is that 105 is all aluminum instead of some steel in Tiagra. What's your take on it?

105 is kind of standard for midrange or entry level bikes.
A lot of it will be R&D, testing. I cant list all the difference - I dont work for Shimano. Lighter weight always comes at a premium because making a part lighter is not always an easy task. You have to maintain structural integrity with lighter materials. A lot of time and testing goes into that.

Like I said, in one year model, the differences will be fairly subtle. Many buyers are happy to pay the price on weight savings alone. I have ridden 2300 (below Sora), Ultegra, 105 and Dura Ace. I have Dura Ace 7800 on my favorite bike because I got most of the parts slightly used at a great price. I can tell a difference between the 105 and ultegra/dura ace. Its not a huge difference, but its there. I cant tell much difference between ultegra and Dura Ace - the only measurable difference there is weight. If I were buying a new bike, I would be fine with Tiagra, but I'm a pretty budget sensitive customer. If I made double my current income, I might spring for the higher end groups.
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Old 03-21-12 | 03:42 PM
  #155  
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From: chicago

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Ive breezed through this forum and I dont really understand all the controversy. Clearly you pay more for better parts, better meaning.... material, form, R & D, demand. you can see and feel the physical differences between parts, but the feeling is minimal and usually trumped by all the other factors in riding a bike.

That being said I see no real reason to ride high end stuff. not to say I dont lust after it.

But remember, its the rider, not the bike.
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Old 03-21-12 | 03:46 PM
  #156  
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Its classic BF chatter. After so many posts of "Gotta get all these upgrades". There eventually comes a slew of posts of "Upgrades are pointless and a waste of money!".

They're kind of both right.
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Old 03-21-12 | 03:56 PM
  #157  
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well apparently given current US market forces, buy your components from the UK, save some money......alot of money it would seem. next stop ribble.

Last edited by pdxtex; 03-21-12 at 04:11 PM.
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Old 03-21-12 | 05:12 PM
  #158  
idc
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Originally Posted by pgjackson
2000 miles is about 6 months for many cycling enthusiast. If you can't get half a year out of a product you spent a lot of money on, then there is a problem. If that product lasts 4-5 years, now we're talking.
2000 miles is a lot for me and my first road bike, I'm just saying I'm glad I got something as high end as I wanted, and didn't compromise too much because of price. It doesn't seem expensive because I've used it a lot and every time I get on my bike I get to enjoy it. I wasn't talking about durability.
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