Why are Modern Bikes So Expensive?
I wanted to share that I just finished listening to a fascinating podcast about the development and manufacturing of high-end carbon bikes. The interview featured the owner of Factor Bikes who provided some interesting insights. One of the things that really caught my attention was the actual cost of the materials used in making top-tier bikes. I was also surprised to learn about the amount of time it takes to train a builder.
https://share.transistor.fm/s/e21c10d9 |
They aren't, but the advertising is generally on the expensive end.
There are many great bikes that are not 'expensive' but cost is in the eye of the beholder and depth of one's pockets... |
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One of my kids just got a Canyon Grizzl with electronic AXS shifting for $2750, and I think it came with an upgraded wheel-set.
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Originally Posted by Atlas Shrugged
(Post 23190117)
I wanted to share that I just finished listening to a fascinating podcast about the development and manufacturing of high-end carbon bikes. The interview featured the owner of Factor Bikes who provided some interesting insights. One of the things that really caught my attention was the actual cost of the materials used in making top-tier bikes. I was also surprised to learn about the amount of time it takes to train a builder.
https://share.transistor.fm/s/e21c10d9 The thing that I am not sure is mentioned is how women are payed less than men and hence, companies like doing things that women can do - like make carbon bikes. These are employees that could be trained to lay up a bike and could leave the next day to work in a factory making cargo pants if it paid more. |
Interesting
People in general seem to think that bike prices should not go up while everything else does totally rough non scientific comparison IIRC in 1982 I bought a Nishiki mid range bike for $280 or so and a toyota tercel 4WD wagon for $7995 Roughly similar today would be Specialized allez sport at $1400 and a subaru impreza Sport (starting at Msrp of $25k) |
Originally Posted by Kai Winters
(Post 23190125)
They aren't, but the advertising is generally on the expensive end.
There are many great bikes that are not 'expensive' but cost is in the eye of the beholder and depth of one's pockets... For the Kestrel with Campy C-Record, the price today would only be $7,507.00. And the Kestrel came with pedals... A Specialized Tacoma SL8 with Dura Ace Di2 sells today for $14,000.00. A Pinarello with Campy Super Record is $17,250.00. Pedals extra. I don't know enough about modern bikes to even know if these models are the top of the line. Are they? Or are the top of the line models even more? Are you really getting $10,000.00 worth of "better performance?" Have bike prices gone up? Sure seems like it to me. |
Originally Posted by squirtdad
(Post 23190180)
totally rough non scientific comparison
IIRC in 1982 I bought a Nishiki mid range bike for $280 or so and a toyota tercel 4WD wagon for $7995 Roughly similar today would be Specialized allez sport at $1400 and a subaru impreza Sport (starting at Msrp of $25k) |
I remember the days when I could walk into a bike shop with a given amount of cash and walk out with a bike, new or used, fit for use.
Now days bike sellers appear more interested in long term financing then providing a bike. Ahhhh... I get it... Its like a Car Dealership... BOHICA! |
Originally Posted by smd4
(Post 23190198)
A top-of-the-line Kestrel 4000 with full Dura Ace sold for $2,700 in 1989. Adjusting for inflation, that would be $6,757.10 today.
For the Kestrel with Campy C-Record, the price today would only be $7,507.00. And the Kestrel came with pedals... A Specialized Tacoma SL8 with Dura Ace Di2 sells today for $14,000.00. A Pinarello with Campy Super Record is $17,250.00. Pedals extra. I don't know enough about modern bikes to even know if these models are the top of the line. Are they? Or are the top of the line models even more? Are you really getting $10,000.00 worth of "better performance?" Have bike prices gone up? Sure seems like it to me. |
Originally Posted by zandoval
(Post 23190209)
I remember the days when I could walk into a bike shop with a given amount of cash and walk out with a bike, new or used, fit for use.
Now days bike sellers appear more interested in long term financing then providing a bike. Ahhhh... I get it... Its like a Car Dealership... BOHICA! |
Originally Posted by smd4
(Post 23190198)
A top-of-the-line Kestrel 4000 with full Dura Ace sold for $2,700 in 1989. Adjusting for inflation, that would be $6,757.10 today.
For the Kestrel with Campy C-Record, the price today would only be $7,507.00. And the Kestrel came with pedals... A Specialized Tacoma SL8 with Dura Ace Di2 sells today for $14,000.00. A Pinarello with Campy Super Record is $17,250.00. Pedals extra. I don't know enough about modern bikes to even know if these models are the top of the line. Are they? Or are the top of the line models even more? Are you really getting $10,000.00 worth of "better performance?" Have bike prices gone up? Sure seems like it to me. |
Originally Posted by zandoval
(Post 23190209)
I remember the days when I could walk into a bike shop with a given amount of cash and walk out with a bike, new or used, fit for use.
Now days bike sellers appear more interested in long term financing then providing a bike. Ahhhh... I get it... Its like a Car Dealership... BOHICA! If you arent able to do that, then you are either... 1- trying to buy a bike that the shop simply doesnt have in stock. -or- 2- needing to shopping elsewhere. Currently I could walk into any bike shop in a 60mi radius of me, pay for an in-stock bike in full, and leave with the bike. |
Originally Posted by smd4
(Post 23190198)
A top-of-the-line Kestrel 4000 with full Dura Ace sold for $2,700 in 1989. Adjusting for inflation, that would be $6,757.10 today.
For the Kestrel with Campy C-Record, the price today would only be $7,507.00. And the Kestrel came with pedals... A Specialized Tacoma SL8 with Dura Ace Di2 sells today for $14,000.00. A Pinarello with Campy Super Record is $17,250.00. Pedals extra. I don't know enough about modern bikes to even know if these models are the top of the line. Are they? Or are the top of the line models even more? Are you really getting $10,000.00 worth of "better performance?" Have bike prices gone up? Sure seems like it to me. |
Today, for that same $2700 - NOT inflation adjusted! - you can get an 18 1/2 lb carbon fiber bike, with 12 speeds, electronic shifting, and hydraulic disc brakes. No amount of money could have gotten you that in 1989.
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Originally Posted by PeteHski
(Post 23190226)
$7,500 today will buy you a higher performance bike than a 1989 Kestrel 4000.
Originally Posted by genejockey
(Post 23190227)
Today, for that same $2700 - NOT inflation adjusted! - you can get an 18 1/2 lb carbon fiber bike, with 12 speeds, electronic shifting, and hydraulic disc brakes. No amount of money could have gotten you that in 1989.
Dollar-for-dollar, you get a far superior bike today in inflation-adjusted terms. Same in the new car market and in many others. |
Another data point - in 1995, a Litespeed Ultimate with full Record components listed for $4600,which works out to $9500 today. That's 8 speeds with 1st generation Ergopower shifters, and Delta brakes.
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My buddy just got his first good bike since the old Raleigh 10-speed he rode in high school 30 years ago, a Trek Verve 2. Disc brakes and all for somewhere between $600-700. Considering inflation, I don't consider that expensive. (That's $309 in 1994 money)
My Trek Domane AL3 was about $1600, which is $760 in 1994 dollars. That seems to be in-line. Could the issue maybe be that you have a taste and knowledge for higher end bikes than you used to? ;) |
Interesting to see the technology comparison. The catch is the older technology isn't really available in the same way that it was before. That means the entry point or basement cost goes up. Of course, this goes for other things as well (cars, phones, etc.) but unless wages go up proportionately, the consumer than has to decide which things to give up completely in order to afford the others.
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Originally Posted by genejockey
(Post 23190218)
So, what would it cost today to get a 21 1/2 lb carbon fiber bike with 7 speeds, downtube shifters, 32-spoke wheels, and single pivot rim brakes? Because that's the comparison.
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Top-tier bike prices have increased more than inflation. It was interesting to learn about the reasons behind these costs. Firstly, the newer component groups are more complex and have tight tolerances, which increases research, development and manufacturing costs exponentially. Secondly, high-end frames are expensive to manufacture and come with significant development and tooling costs that need to be incorporated into the final price. Finally, modern top-tier bikes are much more advanced than their predecessors, with increased customization and complexity. Therefore, it's unfair to compare them with their equivalents from decades ago, just like comparing an original 911 to a modern GT3/RS.
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In 2003, I bought a Time VX Special Pro carbon fiber frame for $2500. In 2024 dollars, that's $4243. Today the Time Alpe d'Huez frame sells for $4368.
That doesn't seem out of line to me. |
Originally Posted by urbanknight
(Post 23190247)
Interesting to see the technology comparison. The catch is the older technology isn't really available in the same way that it was before.
That means the entry point or basement cost goes up. Of course, this goes for other things as well (cars, phones, etc.) but unless wages go up proportionately, the consumer than has to decide which things to give up completely in order to afford the others. |
Originally Posted by smd4
(Post 23190273)
So you want to compare the top of the line in1989 with bottom of the line today? Gotcha.
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Another factor is simply the economics of supply and demand. Generally speaking, manufacturers/retailers will sell products for the highest price the market will bear. If buyers are willing to spend more than just the inflation-adjusted cost increase, so be it.
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