Do you work in the bike industry? Because you sound like you do. This a total myth, and one which they want everyone to believe.pmprego wrote: ↑Wed Sep 01, 2021 11:59 amif that markup was real you would have way more companies entering the bike industry market. The bike industry market, the high end particularly, it's a very, tiny small market with zero economies of scale. This is basically the opposite of the car industry.
Costs to make most bike parts in high volume are really (REALLY) low, and there's not a big difference in cost between low, mid and high end parts, despite the gigantic differences in prices. That VeloBuild frameset for €500 delivered probably costs VeloBuild about €100 less than an S-Works SL7 does to Specialized.
The mid to high end bike market absolutely dwarfs the motorbike industry.
There are several reasons you don't see big new entrants. The price rise has been astronomic, and extremely fast. The expansion of the market has also been very large and very quick. I.E. It hasn't happened YET. But the biggest reason, it's all marketing and brand, with well entrenched companies that all have cushy relationships with the cycling media - or what passes for it. It's never been about features or performance, or very little, for 90% of people buying the top stuff.
That's why you're seeing car and motorbike companies going into e-bikes (even though profit margins are smaller - though still vast) rather than bikes. They're primarily seen as a mode of transport, where people will seek value, performance, and convenience, so they can compete with or out-compete bike brands. Whereas the bike industry is all marketing mumbo-jumbo and snake oil, brand worship and people trying to convince you that a $500 (max) frameset is worth $6-7k (or more), and that $4000 pair of wheels which cost $300 to make are totally worth it.
