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Old 02-27-24, 11:56 AM
  #69  
PeteHski
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Originally Posted by Yan
Light Bicycle has a North American facility in British Columbia staffed by local employees. Their support is as good as any out there.

Manufacturing savings are not passed to the consumer. Nothing in the bicycle industry is priced based on production costs. A $15k bike does not cost 2x as much to produce as a $7.5k bike. Pricing is set by the marketing department based on retail considerations.

Any manager who brings up the naive idea of "passing on savings" would be immediately fired by the higher ups. Companies always charge the most inflated price they can get away with. In capitalism, any company that doesn't play the same game to maximize income will eventually be outcompeted by richer competitors and go extinct.
It depends how competitive the market is. If something costs less to make, then there is more margin to play with. Of course they wouldn’t pass on production savings if they didn’t have to, but there appears to be plenty of competition. It certainly isn’t a monopoly.
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