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SlackBoy
Arisen
Joined: Dec 25, 2001
Posts: 17,542
Location: Showing my tan lines
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 Posted: Thu 17th Apr 12:07am Post subject: |
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| RussS wrote: | 
Trance 0 - $4995.00 RRP
Honda CRF250R - $10,995.00 RRP
A lot more metal and build goes into a MX bike compared to a MTB and I know the margins on them are satisfactory for all involved. |
Totally, I mean, it not as if 30 times more (barest minimum) honda CRF200R's are made eah year than trance 0's. Economies of scale mean nothing maing
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Dazzle
Mangled
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Joined: Feb 11, 2002
Posts: 12,387
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| Posted: Thu 17th Apr 12:30am Post subject: |
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Come on Slacky, be sensible here (although, should I really encourage you to be sensible?).
It is pretty darn obvious that a lot of the high end cycle industry (the part that most of the bike fiends on here lust after) is built around ferari pricing. Ie it is worth more, cos we charge more for it.
It is not THAT much more expensive to manufacture XTR parts than STX, but by the time it hits retail the price difference is an order of magnitude. (And, truth be told, the performance difference is very marginal in comparison to the price difference).
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Nick_K
Out of here.
Joined: Oct 05, 2004
Posts: 9,201
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| Posted: Thu 17th Apr 12:46am Post subject: |
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| Dazzle wrote: |
It is pretty darn obvious that a lot of the high end cycle industry (the part that most of the bike fiends on here lust after) is built around ferari pricing. Ie it is worth more, cos we charge more for it. |
A quick google atually surprised me how small the margins are for shimano etc
| Quote: | | OSAKA, Japan (BRAIN)—Shimano’s 2007 net income jumped 44 percent, to about $178 million, after the components giant set an all-time sales record of nearly $1.9 billion last year. |
A margin of less than 10% doesn't seem much to me. Looking at a couple of other bike related companies this atually seems quite high for the industry as well.
And in regards to the "skyrocketing" prices.
| Quote: | | From the 1st of May Shimano is raising its prices with 5% for components made in Malaysia and Singapore and 2% for the ones made in Japan |
OMG 2-5% I better take out another morgage.
Google business has all sorts of interesting stuff.
Last edited by Nick_K on Thu 17th Apr 2:24am; edited 1 time in total |
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Dazzle
Mangled
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Joined: Feb 11, 2002
Posts: 12,387
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| Posted: Thu 17th Apr 1:12am Post subject: |
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Hey, don't quote the margin accross the whole company to me.
They do huge volume in utility parts, not to mention fishing reels and such.
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Stun
Joined: Jan 03, 2003
Posts: 34,957
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| Posted: Thu 17th Apr 2:50am Post subject: |
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| Dazzle wrote: | Come on Slacky, be sensible here (although, should I really encourage you to be sensible?).
It is pretty darn obvious that a lot of the high end cycle industry (the part that most of the bike fiends on here lust after) is built around ferari pricing. Ie it is worth more, cos we charge more for it.
It is not THAT much more expensive to manufacture XTR parts than STX, but by the time it hits retail the price difference is an order of magnitude. (And, truth be told, the performance difference is very marginal in comparison to the price difference). |
Ferrari pricing?
Don't you mean Santa Cruz pricing?
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CrustyMTB
Wrecked
Joined: Jun 20, 2004
Posts: 4,158
Location: Back in the Hood
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| Posted: Thu 17th Apr 2:54am Post subject: |
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OMG all you bling erohws will have to buy a bike and actually keep it long enough to replace the chain!!! The price of chainbreakers is going to treble overnight and bring the nation into recession!!!
Meh, short of breaking a frame (which hasn't happened in the last 19 years so why now?) I can't see myself getting a new bike in the next 3 years so I'm not bothered...
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Iceberg
Shiny
Joined: Oct 28, 2007
Posts: 27
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| Posted: Thu 17th Apr 6:10am Post subject: |
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As the labour costs in China go up, increasing production costs of many, many things, manufacturers will start looking around the world for other "cheap" pools of labour. As material costs go up, manufacturers will look for alternative materials. In the case of steel and alloy, mining and production has become much more profitable, so you can expect more companies to enter the market, and more mines.
Unfortunately there is a time lag, so it could take several years before things balance out again. Who knows, we could see bikes being produced in Zimbabwe in a few years time.
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_the_Oli_
Scuffed
Joined: Dec 11, 2002
Posts: 364
Location: possibly not your planet
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| Posted: Thu 17th Apr 6:41am Post subject: |
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well, perhaps it's a sign of the time.
the increase in steel/alloy/bike prices is something mirrored in other areas - e.g. due to agricultural practices, the growth of china and india and a huge global demand for bio-fuels costs of staple grains and rice etc have gone up by up to 300%. possibly 750 million folks worldwide at danger.
things like oil and iron ore etc are all finite resources. world population grows 75 million a year, many of them want bikes or cars or gimp masks at some point. india, china and a handful of other countries are undergrowing massive growth and now want a piece of the pie as well - ie heavy demand on most natural resources.
ultimately of course the price of things will go up. how fast and how soon that will happen - who knows.
as other have pointed out here, a change in attitude may go a long way. i dare say that many of us replace their frames, forks or wheels not really out of necessity but 99% out of bling related motivation. so hang on to what you've got for an extra season or two and you won't feel the increase in price so much. consumer behaviour is also a driving force in economy, who knows what effect a doubling in years-per-frame would ultimately cause in terms of bike prices.
anyway. i'm not living up to my own words. i love my new lyriks. got them just a few weeks ago. there was nothing wrong with my pikes...i justified it by putting them on my other bike.
off to check www.1-day sale now. i really need their stuff.
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nostromo
Scuffed
Joined: Mar 28, 2006
Posts: 491
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| Posted: Thu 17th Apr 6:55am Post subject: |
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I agree with others that the steel story is just a front to try and hide the actual reason why bikes will be getting more expensive - which is the very high wages of bike shop workers.
Much the same as how the burgeoning cost of food and petrol that everyone complains about is really due to the big take home pays of checkout girls and service station forecourt attendants.
Cows are in on it too, making ever greater demands that farmers have no alternative but to agree to which explains the rising cost of butter and milk.
It's the workers fault!
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ManDan
Ridden
Joined: Aug 17, 2007
Posts: 138
Location: tga all day
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| Posted: Thu 17th Apr 7:16am Post subject: |
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idont think itll make much differance because thr bikes this year have been cheaper for the componentson it and the quality of the frame this is all marketing propaganda to me i dont care how much my new bike costs im gonna get it next year
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Spokes
Flogged
Joined: Nov 13, 2005
Posts: 3,978
Location: Intenseland
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| Posted: Thu 17th Apr 8:04am Post subject: |
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| Oli wrote: | It doesn't matter, Spokes - we're so rich from all the massive profits we're making we'll be able to by any Ducati we want...  |
Profits  What are they, I think if I started making a profit and had to pay tax IRD would have a party.
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_the_Oli_
Scuffed
Joined: Dec 11, 2002
Posts: 364
Location: possibly not your planet
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| Posted: Thu 17th Apr 8:27am Post subject: |
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| nostromo wrote: | Cows are in on it too, making ever greater demands that farmers have no alternative but to agree to which explains the rising cost of butter and milk.
It's the workers fault! |
don't forget about the sheep, who are to blame for the high cost of merino riding tops. do they think they're something better? maybe they're annoyed they didn't get away so well in Orwell's Animal Farm?
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Oli
Mangled
Joined: Aug 03, 2005
Posts: 29,331
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| Posted: Thu 17th Apr 8:42am Post subject: |
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| nostromo wrote: | I agree with others that the steel story is just a front to try and hide the actual reason why bikes will be getting more expensive - which is the very high wages of bike shop workers.
Much the same as how the burgeoning cost of food and petrol that everyone complains about is really due to the big take home pays of checkout girls and service station forecourt attendants.
Cows are in on it too, making ever greater demands that farmers have no alternative but to agree to which explains the rising cost of butter and milk.
It's the workers fault! |
 GOLD!
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Mr_Bob
Trail Ninja
Joined: Apr 14, 2005
Posts: 10,405
Location: Around....
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| Posted: Thu 17th Apr 8:50am Post subject: |
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| Oli wrote: | | nostromo wrote: | I agree with others that the steel story is just a front to try and hide the actual reason why bikes will be getting more expensive - which is the very high wages of bike shop workers.
Much the same as how the burgeoning cost of food and petrol that everyone complains about is really due to the big take home pays of checkout girls and service station forecourt attendants.
Cows are in on it too, making ever greater demands that farmers have no alternative but to agree to which explains the rising cost of butter and milk.
It's the workers fault! |
GOLD! |
 
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kod
Dusty
Joined: Jul 25, 2003
Posts: 105
Location: Ch Ch, NZ
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| Posted: Thu 17th Apr 2:28pm Post subject: |
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| Joel wrote: | | kod wrote: | OI !!!!!!!!!!
Where are the numbers for aluminium???
How many people still ride steel appart from dirt jumpers, single speeders and unicyclists.
As for alloy bikes this should have minimal effect as the reducing number of steel components on the bikes.
Remember Aluminium prices will also rise as our economy slows down however manufacturing processes have improved to the point where they are super efficient and this cost will come down.
Remember Taiwan are better quality manufacturers than China  |
*sigh* reading comprehension is such a lost skill in this day and age
| Quote: | | These price increases also apply to other bike parts such as alloy, rubber, plastics, etc. In addition, there is also a shortage of steel. |
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*gay* "shortage of steel" which will have a larger influence on the comparitive percentage increase of steel over everything else. Suck it up or are we all just going to have a winge and cry over screwed up economies and dwindling natural resources.
Inflation, recession blah blah blah get over it! there is nothing else we can do, oh wait yes we can, how about we stop sending our $ overseas and buy NZ made.
i.e. stop buying bikes or bring back KeeWee (oh god)
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