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Old 03-14-22, 10:59 AM
  #15  
Psimet2001 
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Originally Posted by burnthesheep
When a company doesn't make the mold exclusive due to cost, it's open for production use from anyone. And that's how all the "not major label" places offer seemingly affordable frames and bikes.
This almost never happens anymore. Molds aren't that expensive anymore (not like when I started) and the price to have your own vs allowing it to be used by others is non-existent to negligible. What you're seeing aren't popular molds being used as open molds but rather clones that were open mold from the start. I think I was offered the option of making my mold open like a decade ago for a slight cost reduction. Anymore it's not even offered. Especially with the filament wound stuff coming out of China now. Mold/setup cost is negligible wen amortized over the minimum run quantity.

In other words the companies that you see offering a frame that looks a lot like multiple other bike companies frames are simply buying open mold - they didn't go and get their mold made and then the factory is selling frames out of that same mold. The factory made a mold/frame and are selling it to whomever wants to buy it.

1. Most Open Mold pieces are really well done and made. These typically aren't sub-par like the implication has been in the past. BUT
2. In the open market everyone instantly devalues open mold so as a company you are light years better off changing the product enough to have your "own" product. Even if it's out of the same factory with the same materials and processes, quality and engineering... if it's different it's different. That's when people start talking "aero" or Geometry benefits, etc.

As an aside for anyone thinking about getting into that style of business from someone who ha been living it for over 12 years - don't. Your fixed cost basis will immediately put you at a disadvantage if you're looking to serve the low cost high performance market. You can't compete with that. If you do decide to compete then your capital investment will have to be staggering in order to be competitive and with the way the supply chain has been operating your largest expense - freight - can increase 10 fold within a couple of months and destroy your entire model. Better hope everyone hasn't changed their minds about what's cool on bikes during the 6 months to 1 year your containers have been on the water and in port. ;D
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