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racing bikes designs

January 11th, 2009 admin Leave a comment Go to comments

Why are bicycles so expensive?

It just seems strange to me that a decent new non-racing bike would cost as much as a top of the line motorized lawn mower.

I just want to get from here to there comfortably and quickly–I don’t need an advanced science behind the design.

Am I paying for rare materials, an overly complex design, labor, status, or what?
Lawnmower analogy: mass produced, similar mass, similar material (to an extent), complex science behind design (motor…), mobile

D’uuuuuuuuuh.

Actually a whole bike for $300-$400 is a good deal.

Consider some individual part prices: road pedals can cost $300+. A pair of good road bike shoes: $250+. A component groupo (Dure-Ace): $3200 !! A set of road wheels (no tires or tubes, no freewheel): $1000+ (See links)

So you see, prices are all relative.

OK, so $300-$400 is relatively cheap … but why are prices what they are?

Look at what determines prices. First there is design and testing. Then there is the cost of materials (some advanced alloys are very expensive) and manufacturing. Then packaging, shipping, distribution, markup at various stages (manu>distributor>retailer). And don’t forget advertizing and liability insurance (e.g. for payouts to settle lawsuits when a part fails).

I’m sure I’ve forgotten something, but you get the point I hope. A $5 part (cost of materials) can easily be a $100 part by the time it gets to your local store.

Also, take into account that many of the costs are lump sum costs that have to be amortized over whatever number of units are sold (e.g. design and testing, advertizing, liability) so they add proportionally more to unit cost for low sales items.

Also look at labour costs. Many less expensive bikes and components are made in low labour cost areas (e.g.China, Malaysia, Korea) while more expensive ones are made in Canada, US, Gernamy, Italy, Japan, etc.

The reason the $300-400 bike can be sold at that price is because it uses stock components manufactured in huge numbers in a low labour cost country.

Market forces ensure that, overall, you get what you pay for. More expensive bikes/components invariably are stronger, lighter, and better performing. That said, you can choose where you want to be on the very wide price/performance scale.

Most advice to cyclists says the same thing, don’t buy cheap, but don’t pay for top end stuff unless you can benefit … and are willing to pay the premium. As with most consumer products, beyond a certain point small improvements in performance come at a very high incremental cost.

Hope that helps.


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