How much does a top end road bike really cost?

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Rick
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by Rick

VTBike wrote:Guys, your completely missing the psychology of what it is to create a brand and a tribe. ...
It's all about emotions guys..

I agree that this is one aspect.
But there really is another aspect: I don't think most people realize how phenomenally expensive it is to bring a real innovation into the market. The engineering, tooling, and testing are all very expensive. Higher levels of quality control also really are more expensive.
So if you buy a "Brand X" bike or accessory, it might be almost equivalent to a name brand...but is it really ? Did they really stress test it in development ? Did they really inspect every one of them in production ? Did they demand certification and testing of all their material suppliers ? Who verified it ? etc..

That being said, I ride a "brand x" frame and buy a lot of second-tier equipment because there is always a supply-demand-value-cost tradeoff. But it is definitely not ALL just emotion and marketing hype. Those are just part of the whole situation. Some brands lean on emotion more heavily than others, while some create genuine innovation. I have some pieces of equipment that are definitely worth the "exhorbitant" price I paid to get them, and I am glad I did (S-Works shoes are my example here; although I waited until I could get those on sale too! :) ).

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HammerTime2
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by HammerTime2

VTBike wrote:Pinarello F8 is akin to Porsche turbo
No it's not. When you buy a Porsche turbo you get the engine - you just have to know how to drive.. When you buy a Pinarello F8, the engine is not included. Handling is important, but without a top flight engine, the "performance" of the Pinarello F8 won't be jack.

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AJS914
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by AJS914

VTBike has it spot on. A $6000 frameset is marketed exactly like a Rolex. A hand-made boutique frame is still the same in the same league. The marketing is slightly different. The quality may be better. Maybe not? Maybe a company with deeper R&D budgets can build a better frame in Taiwan? In the end, it's all the same. For $6K you are buying a frame that is exclusive to the few that can buy it and it's going to have magical properties that only Pinerello, Ernesto Colnago, or some smaller artisanal builder can breath into it. Is it going to actually perform any better than a $2-3K frame? Probably not. But if you have one, you are probably the only one on your club ride with such a bike.


>>Would be really interesting to know the margins manufacturers have on their top end frames/bikes

Actual manufacturing costs are very low relative to MSRP whether a bike is made in Taiwan or Italy. I'd bet Pinarello pays more in sponsorship/marketing per Dogma frame than it costs to build the frame. Getting a TdF winning team to ride your bike is not an inconsequential expense.

losdoyers
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by losdoyers

AJS914 wrote: But if you have one, you are probably the only one on your club ride with such a bike.



Great point, there's a sense of exclusivity when it comes to these frames.

sawyer
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by sawyer

AJS914 wrote:
>>Would be really interesting to know the margins manufacturers have on their top end frames/bikes

Actual manufacturing costs are very low relative to MSRP whether a bike is made in Taiwan or Italy. I'd bet Pinarello pays more in sponsorship/marketing per Dogma frame than it costs to build the frame. Getting a TdF winning team to ride your bike is not an inconsequential expense.


I don't doubt you're right, but that isn't the margin ... marketing (paying Sky or whatever) is part of the distribution costs.

I suspect more manufacturers will move to the Canyon model. The internet is a huge game changer in a market like this. It can't be done completely remotely as some boots on the ground are needed for warranties etc ... but the removal of the shop middle man is a huge saving which can be passed back to the consumer / spent on the market / taken as profit (or more likely some combination etc) ...
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losdoyers
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Joined: Sun Aug 16, 2015 1:26 am

by losdoyers

Interesting that bike are getting more and more expensive. Just frame for the new Venge and Maddens are around $2000 more than their predecessors. Interesting stuff, don't think it costs more to build.

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