View Single Post
Old 04-08-24, 05:31 PM
  #610  
genejockey 
Klaatu..Verata..Necktie?
 
genejockey's Avatar
 
Join Date: May 2007
Location: SF Bay Area
Posts: 18,332

Bikes: Litespeed Ultimate, Ultegra; Canyon Endurace, 105; Battaglin MAX, Chorus; Bianchi 928 Veloce; Ritchey Road Logic, Dura Ace; Cannondale R500 RX100; Schwinn Circuit, Sante; Lotus Supreme, Dura Ace

Mentioned: 41 Post(s)
Tagged: 0 Thread(s)
Quoted: 10608 Post(s)
Liked 12,228 Times in 6,268 Posts
Originally Posted by terrymorse
To be fair to the thread, that's a very difficult question to answer. Getting a real answer would require access to companies' detailed financial data, which are private.

So we're left with speculation and opinion. Given my limited view into how companies operate, I speculate that company management sets a target range of gross profit margin, and any model that falls below that margin is soon to be cut from the product line. I suspect "halo products" that don't meet a company's profit target are quite rare.
I think that depends on how they see the halo product - does it have to make a profit itself? Or is enough that it brings in buyers of less lofty products? Take the Aethos. In addition to the S-Works versions, there are cheaper, heavier, less expensively kitted versions, of which I suspect they sell more than the S-works versions. But I'm working in the same absence of data you mentioned. So this is all handwaving...
__________________
"Don't take life so serious-it ain't nohow permanent."

"Everybody's gotta be somewhere." - Eccles
genejockey is offline