Specialized Increasing costs again

Discuss light weight issues concerning road bikes & parts.
mattyNor
Posts: 276
Joined: Wed Mar 19, 2014 3:18 pm

by mattyNor

So specialized is increasing costs again due to "manufacturing and material costs" even though pretty much everyone (minus the custom guys) are using the same carbon from the same supplier (Toray) and everyone else has managed to keep prices the same or even drop them :noidea:

I just don't get where the value in buying a specialized comes from now, $3400 (not sure in US or CAD) for a mix 105/ultegra, but mostly 105 Roubaix (pls don't sue me) vs $2400 Cad for a 105 Defy. Sure the spesh as that suspension headset thing but that doesn't seem worth $1000 or anything at all really to me, see Cannondale headshock.

Also if last year is anything to judge buy there is likely a second price hike coming in February....

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Kermithimself
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by Kermithimself

They're increasing the price, not the cost. Even if everyone buys carbon from the same company, it's how they treat the carbon afterwards. Anyhow, a small increase of 3-5% is not that much. Specialized is a company that are on a roll at the moment, and they can basically do what they want with their prices. As long as the consumers keep buying their products, they'll probably won't see any reason for lowering their prices. As soon as consumers stop buying their products, they'll probably lower their prices again. Supply and demand in its essence.
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russianbear
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by russianbear

I don't know about on a roll. They had a lot of inventory in 2016, part of the reason they put everything on sale so early this year. Price increasing road bikes seems unwise, considering it's a shrinking market.

spartan
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by spartan

canyonbikes will enter the market in 2017...

predict specialized/trek will adjust prices mid-year :lol:
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Kermithimself
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by Kermithimself

russianbear wrote:I don't know about on a roll. They had a lot of inventory in 2016, part of the reason they put everything on sale so early this year. Price increasing road bikes seems unwise, considering it's a shrinking market.

By on a roll, I meant that they are a quite popular brand that many would like to use.
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cyclespeed
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by cyclespeed

spartan wrote:canyonbikes will enter the market in 2017...

predict specialized/trek will adjust prices mid-year :lol:


They can barely keep up with demand in Europe, so not sure how they're going to cope with the US too....

alcatraz
Posts: 858
Joined: Mon Aug 29, 2016 11:19 am

by alcatraz

russianbear wrote:I don't know about on a roll. They had a lot of inventory in 2016, part of the reason they put everything on sale so early this year. Price increasing road bikes seems unwise, considering it's a shrinking market.


Is road bike a shrinking market? How do you figure?

I'm not thinking you are wrong, just curious to hear about it.

/a

audiojan
Posts: 777
Joined: Fri Jan 27, 2006 1:38 pm
Location: New Hampshire

by audiojan

Any time I see price increase due to increase in "material cost" I crinch... Price is always set based on market price of 2nd best alternative (i.e. if you don't buy this, you would buy that) plus the value you deliver. I bet Specialized saw an opportunity in the market to adjust their pricing and still be able to be comparable to 2nd best alternative.

With that said, material cost I bet is a relatively small % of cost structure. Sales, overhead, distribution, R&D, marketing, etc. all adds up to a significant %. Those costs will more than likely go up year over year.

Also, I bet contributing margin for bikes is only in the 8-15% range... so it's not really that we're getting gouged.
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lw11
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Joined: Mon May 02, 2016 6:34 am

by lw11

I'd like to see the sales before and after Peter Sagan won the World Championships in 2015. He's worth every Euro they've invested in him. When you look at the big three American manufacturers (Trek, Specialized & Cannondale) I bet he's been a big part of the popularity of Specialized in Europe and is taking the competitors market share.

Imaking20
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Joined: Fri Nov 18, 2011 5:19 am

by Imaking20

My LBS got a disc Vias in stock that looked WAY better in person than I expected. Amidst my bike woes, I considered snagging it - then two days later Specialized raised the price ~12%... pass!
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Retired:
Blue | Project C6.0 | Felt AR FRD | Colnago C59 NERO | 2014 S-Works Tarmac | S-Works Venge | Wilier Cento Uno SL | Tarmac SL2

jmaccyd
Posts: 120
Joined: Fri Nov 13, 2015 4:12 pm

by jmaccyd

They make 'decent' bikes but they seem massively overpriced these days. I was in the market for a new frame a couple of years ago and the latest S Works frame was north of £3000. As I told my bike shop, if I was going to spend that on a frame, I would get a Colnago or a Pinarello, not a Specialized! Bought a Foil Team Issue for £700 in a sale instead. No longer value for money buy.

mergeforthekill
Posts: 29
Joined: Fri Jun 17, 2016 1:24 am

by mergeforthekill

cyclespeed wrote:
spartan wrote:canyonbikes will enter the market in 2017...

predict specialized/trek will adjust prices mid-year :lol:


They can barely keep up with demand in Europe, so not sure how they're going to cope with the US too....


I'd imagine, or at least hope they've planned for it.

eaglejackson
Posts: 256
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Location: PNW

by eaglejackson

lw11 wrote:I'd like to see the sales before and after Peter Sagan won the World Championships in 2015. He's worth every Euro they've invested in him. When you look at the big three American manufacturers (Trek, Specialized & Cannondale) I bet he's been a big part of the popularity of Specialized in Europe and is taking the competitors market share.

Contador was also helping sell Specialized bikes, especially in Spain. I was in Spain last year and my friends said everyone wanted a Specialized, "like Alberto." We'll see if that changes with Contador riding for Trek now. I heard that Trek is lowering prices in response to Specialized raising them.

lw11
Posts: 85
Joined: Mon May 02, 2016 6:34 am

by lw11

spartan wrote:canyonbikes will enter the market in 2017...

predict specialized/trek will adjust prices mid-year :lol:

Even Canyon aren't as value for money as what they used to be. Here is Australia, the Canyon Ultimate Aero would be the same price as a S-Works Tarmac eTap (for the sake of comparing similar spec) except the Canyon would have to be sent back to Germany/Australian office if there's any problems. Admittedly the Zipp 404 NSW wheels on the Canyon > Roval CLX 40.

RRP pn a S-Works Tarmac frameset is $4,499 however i've seen them advertised by many dealers for $3,500, which is the same price as an Ultimate frameset.

uraqt
Posts: 815
Joined: Mon Apr 03, 2006 8:53 am

by uraqt

With this thread only really having one issue with WCB-R-066 ( the water bottle bosses were not centered) and tons of good reviews...I would be hard pressed to any major brand with a fully tested frame only about 400.00 USD

viewtopic.php?f=3&t=113717&start=2370

C

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