SRAM buys Zipp.

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geraldatwork
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by geraldatwork

This has to be good for bike purchasers and riders. It means an equal or near to equal 3rd player in the market. Nothing like good old competition to create innovative products and more competitive prices. When there are only two companies competing it is easier for them to control the market. The 3rd becomes a wild card.
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RTW
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by RTW

alienator wrote:What SRAM says they'll do or not do may not bear any resemblance at all to what they actually do.


They have been true to their word in the past though. SRAM MTB stuff is where you need to look. They bought Avid. Do you see SRAM MTB brakesets? No, you see Avid brakesets still. They bought Truvativ, and do you see SRAM MTB cranks? Nope. They bought Rock Shox....same thing.

by Weenie


alienator
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by alienator

RTW wrote:They have been true to their word in the past though. SRAM MTB stuff is where you need to look. They bought Avid. Do you see SRAM MTB brakesets? No, you see Avid brakesets still. They bought Truvativ, and do you see SRAM MTB cranks? Nope. They bought Rock Shox....same thing.


I guess that proves it all, then.

RTW
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by RTW

Conclusively. But I will allow you to procrastinate about it, quote studies, white papers and draw graphs if you like.

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Wingnut
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by Wingnut

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airsoft510
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by airsoft510

So does this mean that zipp will lower its prices? i hope so

Skillgannon
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by Skillgannon

Airsoft, it looks like it could go either way - the larger distribution market might push prices down somewhat, but at the same time, wheels (of a similar perceived quality level: eg Shimano's deep 50's) that are stocked in OEM kits have a higher RRP than Zipp's do currently (at least over here, Shimano Carbons are ~3200 Zipp 404's are about ~2950 from memory), and the use of the wheels are part of OEM build kits may infact inflate the prices of standard wheels. Also, SRAM may boost the prices to recuperate the costs involved in purchasing Zipp.

That was all just speculation (and some of those reasons may be pure junk), but it shows how it could go either way.

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CharlesM
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by CharlesM

I would imagine product line expansion to include a more rounded offering of multiple price points.

SRAM haven't exactly forced a downward shift in groupo prices so far...


And in the last 5 Acquisitions I have been near, the principals and staff have all been held over long term... Some companies buy great people and use them to make things better. Not that that happens every time, but not all buy out's are complete sell outs.

f.gump
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by f.gump

I think this is great news, a third player can only greatly benefit the market. The RED groupo is already the lightest and with a Zipp crank will be half a pound below record, this will push hard Campy and Shimano.
We will see more innovation, more composite technology and better prices.
I really welcome this move, much smarter than acquiring Mavic.

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darbydog
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by darbydog

1 question I have is with companies that bought zipp rims and built them up under their logo. Are they still going to be able to do this or will SRAM want to keep the technology for themselves?
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Skyleth
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by Skyleth

darbydog wrote:1 question I have is with companies that bought zipp rims and built them up under their logo. Are they still going to be able to do this or will SRAM want to keep the technology for themselves?


Probably as it seems like that was a good bit of Zipp's income, SRAM has also stated:

5. All Zipp contracts and business relationships will be honored.
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micky
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by micky

PezTech wrote:
SRAM haven't exactly forced a downward shift in groupo prices so far...




That's what Im guessing too; I mean, it doesnt look like there will be any change in Zipp prices.

alienator
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by alienator

RTW wrote:Conclusively. But I will allow you to procrastinate about it, quote studies, white papers and draw graphs if you like.


Absolutely! Here's a plot to satisfy your needs:

Image

Sorry, I don't have a published study, at hand to quote. I'll try to dig one up. I typically don't quote white papers since they're worth only as much as the marketing guys at the company think they're worth, but if your needs are really causing you to jones, let me know, and I'll search out a white paper for you.

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si1ver
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by si1ver

Now all SRAM got to do is buy TIME pedal division to complete the range :)

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marecej
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by marecej

or someone who makes only pedals...BEBOP? ;)
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by Weenie


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