JanJan Posted May 3, 2017 Share Guys, the last time anything sold at a cost plus the Voortrekkers packed their Ossewaens. You sell a product at what the market will accept. This depends on type of product, competition in your product market, barrier to enter said market, disposable income of the market and then the Golden Egg, BRAND Equity. Then, when you determined what the market will accept, you engineer the product to realise a threshold margin that rewards the minimum return on investment required. Again, if Brand Power gets you to exceed that threshold many times over, great. But remember, it took a hell of an investment to get the brand to demand those prices. So it is irrelevant whether a bike has more or less R&D than a car, or more expensive or cheaper materials than a car. It is also almost irrelevant what the volumes are, and effeciencies of the supply chain. All of that determines the cost of a product, not the sales price. The Market determines that based on its (perceived?) value of the product to it. So as long as we WANT to pay R180 000 for a Scalpel, Cannondale will ask R180 000 for a Scalpel, regardless of the fact that almost every component (apart from frame and fork in cannondale's case) is similar to the R70 000 Momsen. Then also, access to credit also increased the asking price, as I can "afford" R180 000 becuase its only R10 000 a month (over many months @13%, but that is irrelevant)You gave the long answer.:-) The short answer: the guy with the small tottie bought the R180000 bike to impress his buddies also with small totties. Now they are jealous and can't wait to pay R200k for 2018 model with 2mm lower BB. No economics model or engineering involved. Link to comment Share on other sites More sharing options...
Boerklong Posted May 3, 2017 Share Dis belaglik. Ridiculous what they cost and ridiculous that I paid what they wanted for it. Link to comment Share on other sites More sharing options...
Patchelicious Posted May 3, 2017 Share You gave the long answer.:-) The short answer: the guy with the small tottie bought the R180000 bike to impress his buddies also with small totties. Now they are jealous and can't wait to pay R200k for 2018 model with 2mm lower BB. No economics model or engineering involved.Oh, I didn't know there was a correlation between economic success and tottie size. Meh, guess we learn something new every day. I better go for a penis reduction operation so that I can become rich and buy all those bikes that I want. Link to comment Share on other sites More sharing options...
Patchelicious Posted May 3, 2017 Share For this to make any sense, you need to differentiate between cost, perceived value and desirability. People don't buy Sworks for their functional superiority over the model that costs half as much, they buy them because they want the best. Link to comment Share on other sites More sharing options...
Heel Drop Posted May 4, 2017 Share lets not forget the price of maintaining a bike. I got tyred of driving to the shop constantly with a spez as it needed more attention then my wife --- and sold it 150 hrs suspension service R3000 - whaaaaaat? Why ? Link to comment Share on other sites More sharing options...
Friedpiggy Posted May 4, 2017 Share The r&d that goes into a top end bike is massive. The issue I have is that prices stay high for that model. A 2015 bike that was 100k at launch time is still around 70-80 k 2 years later. Surely it would make more sense to drop prices by more than 10% when a new model comes out. My biggest issue though is the rip off of buying a bike in SA. Entry level carbon starts at around 20k, in the UK, entry level carbon is around 12k (in rand). Something is not right there. Link to comment Share on other sites More sharing options...
ChUkKy Posted May 4, 2017 Share Hi, I am also a cyclist doing road and MTB. I need to buy a supercab bakkie and they go for just over R220 000 for some decent Ranger.Just wondering what I am paying for in buying a Cannondale Scalpel for example for R180 000.It seems quite a lot for 2 wheels and a frame and no engine. What make a bike so expensive?This is a serious question as I cannot see what can cost so much. Welcme to the Hub...Ive been asking this exact same thing for a while now and Ive been cycling for a good few years. There is absolutely ZERO value in a R180k bicycle, if someone can show me the value in that and show me the tech thats in it which is more advanced than say a car, or a motorcycle in the same price range, Ill ride a race naked. Cycling as a whole has gone tits up, in the past 4 years off the top of my head the following has just become a means to milk the people who love to ride. Races, especially stage races.Bicycle pricesSpares prices Heres an example of a price, I bought a set of Look S-Track pedals 2 years ago online, R750. This same retailer now has them at R1050 with RRP of R1550 "save 27546352624%"Exchange rate has not doubled in the last 2 years. Then theres the story of "official importers / agents" for products, simply adding cost and no value and stopping free trade from directly importing goods. In the end its not worth bitching about, cycling is gonna end up the same way as golf has... basically dead. Golf clubs are almost giving memberships away these days trying to build up numbers, a gold club is heavy maintenance which I can understand but to send some MTB riders through some open land belonging to an oom, I dont think so but theyll still charge upwards of R300 per rider to do so. Cycling in general has just become a massive money making rip off, it will chase people away slowly but I guess these people are business people and must strike while the fish are biting. Thats my rant, we can go on and on then around in circles. Friday is in the air!!!! Link to comment Share on other sites More sharing options...
Kalahari Vegmot Posted May 4, 2017 Share So, 1 testicle=7tdf wins, and a small 'oke'=any bike you want. Correct? Now just imagine the possibilities with a SRS........ Link to comment Share on other sites More sharing options...
Mongoose! Posted May 4, 2017 Share ....ride a race naked. please don't Cycling as a whole has gone tits up, in the past 4 years off the top of my head the following has just become a means to milk the people who love to ride. Races, especially stage races.Bicycle pricesSpares prices Heres an example of a price, I bought a set of Look S-Track pedals 2 years ago online, R750. This same retailer now has them at R1050 with RRP of R1550 "save 27546352624%"Exchange rate has not doubled in the last 2 years. Then theres the story of "official importers / agents" for products, simply adding cost and no value and stopping free trade from directly importing goods. In the end its not worth bitching about, cycling is gonna end up the same way as golf has... basically dead. Golf clubs are almost giving memberships away these days trying to build up numbers, a gold club is heavy maintenance which I can understand but to send some MTB riders through some open land belonging to an oom, I dont think so but theyll still charge upwards of R300 per rider to do so. Cycling in general has just become a massive money making rip off, it will chase people away slowly but I guess these people are business people and must strike while the fish are biting. Thats my rant, we can go on and on then around in circles. Friday is in the air!!!! could not say it better Link to comment Share on other sites More sharing options...
Patchelicious Posted May 4, 2017 Share Welcme to the Hub...Ive been asking this exact same thing for a while now and Ive been cycling for a good few years. There is absolutely ZERO value in a R180k bicycle, if someone can show me the value in that and show me the tech thats in it which is more advanced than say a car, or a motorcycle in the same price range, Ill ride a race naked. Cycling as a whole has gone tits up, in the past 4 years off the top of my head the following has just become a means to milk the people who love to ride. Races, especially stage races.Bicycle pricesSpares prices Heres an example of a price, I bought a set of Look S-Track pedals 2 years ago online, R750. This same retailer now has them at R1050 with RRP of R1550 "save 27546352624%"Exchange rate has not doubled in the last 2 years. Then theres the story of "official importers / agents" for products, simply adding cost and no value and stopping free trade from directly importing goods. In the end its not worth bitching about, cycling is gonna end up the same way as golf has... basically dead. Golf clubs are almost giving memberships away these days trying to build up numbers, a gold club is heavy maintenance which I can understand but to send some MTB riders through some open land belonging to an oom, I dont think so but theyll still charge upwards of R300 per rider to do so. Cycling in general has just become a massive money making rip off, it will chase people away slowly but I guess these people are business people and must strike while the fish are biting. Thats my rant, we can go on and on then around in circles. Friday is in the air!!!!Just think about that again. Link to comment Share on other sites More sharing options...
gummibear Posted May 4, 2017 Share Bike prices are just crazy. Most new mtb come with 1X11 or 1X12. That means no front derailleur or shifter but yet bikes are more expensive Link to comment Share on other sites More sharing options...
gummibear Posted May 4, 2017 Share There is absolutely ZERO value in a R180k bicycle,For R180k you can get a sub 6kg road machine Link to comment Share on other sites More sharing options...
dave303e Posted May 4, 2017 Share Well firstly, you're not comparing apples with apples. Supercab Ford Bakkie != Cannondale Scalpel. A more realistic comparison would be between a supercar (eg Lambo, Ferrari )and a top of the range MTB. As with the cars, there is no way that the raw material costs of the bike equates to the asking price. It has to do with R&D costs, manufacturing overhead, component costs and then "want/prestige" factor ok apples with apples then.2017 Ducati 1299 Panigale- Purebred Italian race machineR247kIs there more engineering in a bicycle that costs 200k?Ducati even has a 'Lefty' rear end, also produces 200hp and they had to re-engineer every part of the engine when they moved to 1299cc. The engine revs to 11000RPM, it has a 6 speed quick shift gearbox with a rather fancy clutch and weight in at under 170kg.EFI, ABS and a whole pile more electronics. For only 50k morePlease explain the more engineering part... Link to comment Share on other sites More sharing options...
Pulse Posted May 4, 2017 Share ok apples with apples then.2017 Ducati 1299 Panigale- Purebred Italian race machineR247kIs there more engineering in a bicycle that costs 200k?Ducati even has a 'Lefty' rear end, also produces 200hp and they had to re-engineer every part of the engine when they moved to 1299cc. The engine revs to 11000RPM, it has a 6 speed quick shift gearbox with a rather fancy clutch and weight in at under 170kg.EFI, ABS and a whole pile more electronics. For only 50k morePlease explain the more engineering part... They should add a "double like" button... Link to comment Share on other sites More sharing options...
VicanZA Posted May 4, 2017 Share Oh, I didn't know there was a correlation between economic success and tottie size. Meh, guess we learn something new every day. I better go for a penis reduction operation so that I can become rich and buy all those bikes that I want.dont know if you can do it, will mean having to be off the hub for a couple of days. Link to comment Share on other sites More sharing options...
NelAndre Posted May 4, 2017 Share This having been said - I'd take my bikes over a bantam anyday - I agree, and that for me is the point of like for like. Link to comment Share on other sites More sharing options...
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