OK, somebody explain the high end bike schwag inflation phenomena to me
12-02-07, 06:10 AM
#1
Peloton Shelter Dog
Thread Starter
OK, somebody explain the high end bike schwag inflation phenomena to me
So I'm at my LBS yesterday, and I learn the price of Zipp wheels all went up. Substantially. Again. Now 404's (tubular or clincher) are a whopping $2100 MSRP. That's up $200 from last year (I think it was $1900, correct me if I'm wrong). Weren't these wheels like $1500 a couple of years ago?
What's UP with that? Is the high end road bike schwag market that strong? That's remarkable. Between stupid prices on Zipps and PM's (the two high end accoutrements I have acquired or seek to acquire) it sort of defies ecomomic logic in an era of low inflation. I didn't think cycling was all that popular.
Discuss. I'd be real curious to hear Bike Direct's viewpoint on all this.
What's UP with that? Is the high end road bike schwag market that strong? That's remarkable. Between stupid prices on Zipps and PM's (the two high end accoutrements I have acquired or seek to acquire) it sort of defies ecomomic logic in an era of low inflation. I didn't think cycling was all that popular.
Discuss. I'd be real curious to hear Bike Direct's viewpoint on all this.
12-02-07, 06:32 AM
#3
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The type of people who bought them at 1900 are the very same people who will be purchasing them at 2100.
They simply have to have the best.Be it for performance, looks, reputation, or simply the jaw drop factor.
That ain't me.
They simply have to have the best.Be it for performance, looks, reputation, or simply the jaw drop factor.
That ain't me.
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12-02-07, 06:35 AM
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everyone has a plan...
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because all the corporate CEOs and marketing presidents are BF lurkers and they noticed PCad is addicted to "schwag"
when they noticed that... they collectively hiked their prices.
THANKS PCAD!
when they noticed that... they collectively hiked their prices.
THANKS PCAD!
12-02-07, 06:54 AM
#6
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Ummm...Could it not just be a result of the dropping US dollar??
12-02-07, 06:59 AM
#7
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Zipp's new marketing campaign to tout carbon fiber wheels as a solution to global warming has caused a surge in demand from all the Hollywood celebrities eager to be seen as doing something. Al Gore flew in on his Gulftstream, drove to the hotel with his six car entourage of Escalades, then calculated the carbon footprint of such an act. To counter it, it became necessary for Al to purchase the entire 2008 run of Zipps.
12-02-07, 07:30 AM
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I paid 1,700 total. That included zipps, 2 michelin pro race2 tires, 2 tubes and a new derailleur and an addition to this he even gave me a new pump free of charge.
yep, that wasnt the question... just feel lucky about the price I paid!
yep, that wasnt the question... just feel lucky about the price I paid!
Last edited by blonduathlongrl; 12-02-07 at 07:53 AM.
12-02-07, 07:57 AM
#9
Peloton Shelter Dog
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The last major bike schwag procurements have been on eBay, one year old barely used stuff. In both instances I saved about 40% + off the best price I could have gotten at my LBS. However if you want the schwag, you can't avoid new stuff forever. Oh well.
12-02-07, 08:09 AM
#10
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Because they know you're a walking wallet Pcaddy 
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12-02-07, 08:14 AM
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In 200-2001 they were in the $1100-1200 range.
And that's why I'm boycotting Zipp. I can hear them crying now.
And that's why I'm boycotting Zipp. I can hear them crying now.
12-02-07, 08:15 AM
#12
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Because it now has an entry level CF wheel set, Flashpoints, that enable it to raise the price on the elite compontents, the Zipps. With stuff like the BD buy, it'll be interesting.
12-02-07, 08:15 AM
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We suspect your local LBS has a person assigned to you. As you walk in, they quickly up the prices at least 10% since they know you are an addict and will buy no matter what. After you leave they have a sale.
12-02-07, 08:16 AM
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Where are Zipp wheels made? Could it be because of the declining value of the dollar relative to foreign currencies?
Didn't SRAM just buy Zipp?
Didn't SRAM just buy Zipp?
12-02-07, 08:35 AM
#16
Peloton Shelter Dog
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12-02-07, 08:49 AM
#18
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12-02-07, 08:58 AM
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Carbon costs more...
Yes...SRAM now owns Zipp.
12-02-07, 11:42 AM
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patentcad:
I suspect two factors are at work: one is the low value of the US$; since most bike components are foreign-made, a weak dollar makes them more expensive here in the US. (Though I don't know if Zipp's are foreign-made; can someone else comment?) Second is an economist's concept called "demand elasticity" - if almost as many people will buy Zipps at the higher price, it is profitable to raise the price - the higher price offsets the lower sales qty, giving the mfr more revenue at lower sales (= lower costs) and hence higher profits.
I offer these suggestions while acknowledging that I know little about Zipp, since I'm not in that market.
I suspect two factors are at work: one is the low value of the US$; since most bike components are foreign-made, a weak dollar makes them more expensive here in the US. (Though I don't know if Zipp's are foreign-made; can someone else comment?) Second is an economist's concept called "demand elasticity" - if almost as many people will buy Zipps at the higher price, it is profitable to raise the price - the higher price offsets the lower sales qty, giving the mfr more revenue at lower sales (= lower costs) and hence higher profits.
I offer these suggestions while acknowledging that I know little about Zipp, since I'm not in that market.
12-02-07, 12:47 PM
#23
Peloton Shelter Dog
Thread Starter
I opted for one year old used Zipp 404s vs. other choices because I thought Zipp quality was worth the premium, and since they are popular it's not so hard to find a minty used pair on eBay for a more reasonable price. Whether they're really worth it or not is sort of secondary: I was after the resale value, and Zipps do offer retention of value if you buy them one year old. I'm sure Reynolds or Bontrager offer similar wheels, but they don't say Zipp, and Zipp is the Schwag.
12-02-07, 12:59 PM
#24
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well, an analogy;
prices of new boats and atv's are ridiculously high imo. it seems that, the people who are going to own them no matter what, are going to pay that premium (unfortunately, i'm in said group). and that must be the core business for mfr's.
with boats, it's intresting. when financing and consumers' standards of living are favorable, you'll see a flood of "enty-level" boats on the market. models that "look nice," but are made affordable by under-powering them. seem's like they are targeted for those wishful boat owners who say, "what the heck, interest rates are good, we've got a few extra bucks to spend every month, etc." funny, for a couple of years after that, the used boat market is a gold mine.
don't know if that translates here....just something i've noticed.
prices of new boats and atv's are ridiculously high imo. it seems that, the people who are going to own them no matter what, are going to pay that premium (unfortunately, i'm in said group). and that must be the core business for mfr's.
with boats, it's intresting. when financing and consumers' standards of living are favorable, you'll see a flood of "enty-level" boats on the market. models that "look nice," but are made affordable by under-powering them. seem's like they are targeted for those wishful boat owners who say, "what the heck, interest rates are good, we've got a few extra bucks to spend every month, etc." funny, for a couple of years after that, the used boat market is a gold mine.
don't know if that translates here....just something i've noticed.
12-02-07, 02:16 PM
#25
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patentcad:
I suspect two factors are at work: one is the low value of the US$; since most bike components are foreign-made, a weak dollar makes them more expensive here in the US. (Though I don't know if Zipp's are foreign-made; can someone else comment?) Second is an economist's concept called "demand elasticity" - if almost as many people will buy Zipps at the higher price, it is profitable to raise the price - the higher price offsets the lower sales qty, giving the mfr more revenue at lower sales (= lower costs) and hence higher profits.
I offer these suggestions while acknowledging that I know little about Zipp, since I'm not in that market.
I suspect two factors are at work: one is the low value of the US$; since most bike components are foreign-made, a weak dollar makes them more expensive here in the US. (Though I don't know if Zipp's are foreign-made; can someone else comment?) Second is an economist's concept called "demand elasticity" - if almost as many people will buy Zipps at the higher price, it is profitable to raise the price - the higher price offsets the lower sales qty, giving the mfr more revenue at lower sales (= lower costs) and hence higher profits.
I offer these suggestions while acknowledging that I know little about Zipp, since I'm not in that market.