Margins-or how much is enough-industry types please chime in

Discuss light weight issues concerning road bikes & parts.
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853guy
Posts: 159
Joined: Sat Dec 30, 2017 8:48 pm

by 853guy

stormur wrote:
Mon Jan 08, 2018 10:36 pm
Tarmac "architecture" is shared with all other models made by Specialized... total missed shot. VW Polo, Skoda Rapid and Seat Ibiza are made in different factories, look different ( body part, interrior part ) , have to go thru separate certification process, have to be advertised separately.... Even simple thing like cargo of frame/ bike and car generates enormous difference in cost . So, please .... :roll:

Point is : to sale 10k€ car ( with delaer margin 3% before discount for the client ( ask any bike shop to sell bikes for 3% margin :mrgreen: !) and cheap cars produce more revenue and better margin for manufacturer than expensive ones ) how much any car manufacturers have to invest in

1. Engineering
2. Certification
3. Own factory
4. Dealership chain
5. Warranty claims reserve
6. Marketing
7. Education ( mechanics )
8. Legal department
9. few racing teams ( 1+ in each category )
10. Road tests

Good Q: what sells in bigger quantity in your nearest( local) big city : new cars or new bikes ? ;) I know answer, I believe you do as well.

Now how much bike "brand" have to invest in new model ? : 3-5 engineers, 3-5 marketing geeks, and 50 low paid noobs for net activity :mrgreen:
All the MOST IMPORTANT rest will be easy and fairly cheap outsourced ( details like manufacturing, testing, certification ) . Specialized ( isn't biggest brand ? ) employes 300 ish people worldwide. ONLY 300ish ! They have over 2 milion $ annual revenue per employee... . Including drivers, cafee and cleaning ladies. Impressive, isn't it ?


Or ... Nothing ( like Bianchi with Zolder ) : just order 5-10.000 frames, make a phonecall to painter which will make design for free, and will paint all of them cheap ( that includes special editions ( sic!) and team bikes ) . 3-5% of frames for warranty claims ( all obvious accepted, rest rejected to not employ even 1 lawyer, cost more )... And we have Bianchi Zolder frame with EXACTLY 500% margin. ( OEM manufacturer naturally will provide for free client ready packaging with Bianchi logo's ) . Now left to buy some positive reviews, some forums activity, give some frames to few riders, take aspiring photo/ videographer which will happily work for free ( to just put Bianchi logo in CV :) ) ... buy some advetrs... and voila : we have ( example ) Bike of the year :mrgreen: ( 20grands in cash plus 1y adverts in portal should be enough ;) ) . Heritage of the brand naturally included :mrgreen:

Does it sound almost insane ? It does. Don't blame me for that. it's just how it works. Or may work.

Bianchi is just as example : brand with "heritage" selling OEM frames under own logo.
Hi stormur,

English is my first language, but either I have misunderstood your post, or perhaps you misunderstood mine.

In any case, and despite reading and re-reading your posts for context, I'm not sure I understand exactly what it is that you're trying to say, except that you have an agenda, and feel the need to share it here.

Best of luck with whatever change you're hoping your posts may achieve. Or not.

853guy

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