Current Bike Pricing vs. Value

[Mtree]

Have found that the SA suppliers of certain items have lost touch with reality... (False shortages, or valid?)
11sp Shimano 105 groupset, landed in SA from the UK is around half the SA price (Looking at RRP), how is this justified?
Think some companies need to have a look at their pricing models...
 

Edited April 27, 2023 by Mtree

[LazyTrailRider]

3 hours ago, Skeletor1 said:

How do people in SA afford this? How do bike shops keep afloat with pricing like this, or is it only me?

You'd be surprised how many people in SA earn more than a few bar a year...

If you don't have kids, even R2m/year easily buys you a R130k bike every 2 or 3 years.

[The Ouzo]

52 minutes ago, Mtree said:

Have found that the SA suppliers of certain items have lost touch with reality... (False shortages, or valid?)
11sp Shimano 105 groupset, landed in SA from the UK is around half the SA price (Looking at RRP), how is this justified?
Think some companies need to have a look at their pricing models...
 

I’m actually wondering how much of this higher pricing is based on orders for these parts having to have been placed maybe 6 - 12 months back already. So whilst international prices have since come down, importers have paid the old price for these items and obviously need to pass these higher prices on. 

[parrcat]

On 4/6/2022 at 3:43 PM, ChrisF said:

 

Bought my bike in February 2020.  24 months later I updated my insurance .... current replacement value 67% more than when I bought it !! 

So I'm not sure about replacement costs of bikes for insurance purposes. When you insure say a 2-year old car, the value is that of a 2-year old car, and that's what you pay, and what you will be compensated for if lost, crashed etc. That figure should go down as the car gets older. I've insured my bike for what I know it's worth on the market if I sell it, and I adjust it accordingly. I'm not sure why one would insure for a new replacement bike that obviously is way more expensive, and why insurance companies accept that kind of valuation? Surely this is what potentially leads to so many fraudulent claims, and pushes insurance costs up?

[ChrisF]

42 minutes ago, parrcat said:

So I'm not sure about replacement costs of bikes for insurance purposes. When you insure say a 2-year old car, the value is that of a 2-year old car, and that's what you pay, and what you will be compensated for if lost, crashed etc. That figure should go down as the car gets older. I've insured my bike for what I know it's worth on the market if I sell it, and I adjust it accordingly. I'm not sure why one would insure for a new replacement bike that obviously is way more expensive, and why insurance companies accept that kind of valuation? Surely this is what potentially leads to so many fraudulent claims, and pushes insurance costs up?

 

I certainly dont understand this approach either.

 

But I was told by my broker, and confirmed on the Hub a few times already, to get a written quote for the "current replacement" cost.

 

Fine and dandy when your specific bike is still in production .... I have yet to get a clear answer as to what happens when that model range is dropped.  Also, gets tricky when you have a lot of custom parts ....

 

 

Only thing I CAN confirm - do speak to your broker and make 100% sure what your insurance requires to provide "comprehensive cover" for your bike.

[BaGearA]

10 hours ago, ChrisF said:

 

I certainly dont understand this approach either.

 

But I was told by my broker, and confirmed on the Hub a few times already, to get a written quote for the "current replacement" cost.

 

Fine and dandy when your specific bike is still in production .... I have yet to get a clear answer as to what happens when that model range is dropped.  Also, gets tricky when you have a lot of custom parts ....

 

 

Only thing I CAN confirm - do speak to your broker and make 100% sure what your insurance requires to provide "comprehensive cover" for your bike.

My bike is insured very comprehensively for the current replacement value , which has increase a little since I took out the policy

 

Custom parts I spoke to my broker about long but in the end decided I'm not going through all the hassle , base value I'll get back but custom parts will be for my own recovery ( which I'm aware of and accept the risk ) 

 

 

CLEAR CLEAR communication with the insurance or your broker ( highly recommend this ) is the biggest piece of "advice" I could offer anyone 

[RobynE]

Decathlon (Rockrider) represents AMAZING value. Crazy when the bikes come in via Mauritius and still land here cheaper than the popular brands! 

[Wannabe]

I asked an well known LBS for a valuation on my new to me, Scott Speedster S with Ultegra 6700 groupset and Ksyrium Equipe wheelset. All well looked after, but still "old" bike.

I got told the bike was worth about R15 000.00, which I think is about ballpark.

Asked them to send me an e-mail with the info for Insurance purposes. great was my surprise when the e-mail stated R125 000.00 for an Addict 10 (obviously the current replacement bike/value)

Now my conundrum is, do I insure it for the actual value, or the replacement value? I will as obviously pay the premium for an R125 000-00 bike, unless I can get it insured as my R1.00 bike. (now you also know who my insurer is) 

[SwissVan]

On 4/6/2022 at 2:43 PM, The Ouzo said:

mate its not just bikes. I sell cars, try explaining the huge price tags on cars these days.

A bladdy car comes in at least a ton, lots of stuff that makes up that weight … radio, sat nav, aircon, electric windows, alarm immobilizer, engine that drives the wheels, a boot, spare wheel, etc, etc….  

Bicycles lose everything to reduce weight and you pay more for having less

Cyclists must be dumb suckers…in addition to being wheel suckers

😂

Edited April 28, 2023 by SwissVan

[The Ouzo]

4 minutes ago, SwissVan said:

A bladdy car comes in at least a ton, lots of stuff that makes up that weight … radio, sat nav, aircon, electric windows, alarm immobilizer, engine that drives the wheels, a boot, spare wheel, etc, etc….  

Bicycles lose everything to reduce weight and you pay more for having less

Cyclists must be dumb suckers…in addition to being wheel suckers

😂

the smaller a bikini the more you pay

[mecheng89]

6 hours ago, RobynE said:

Decathlon (Rockrider) represents AMAZING value. Crazy when the bikes come in via Mauritius and still land here cheaper than the popular brands! 

Rockrider MTBs are internationall represented,I read an article somewhere of I think a French woman that won a race on a Rockrider.

[RocknRolla]

As long as the people are drinking the <insert latest cycling (marketing) related technological development (gimmick) > cool aid, the manufacturers will be making said cool-aid, with new and improved flavours coming out each year…

I also blame our local importers for focussing too much on the upper tier of purchaser, and not the average Joe. It’s either dry forced entry, or cheap consumer goods store crap…

[Sandro]

On 4/28/2023 at 11:47 AM, RobynE said:

Decathlon (Rockrider) represents AMAZING value. Crazy when the bikes come in via Mauritius and still land here cheaper than the popular brands! 

Hadn't heard of them until now so I had a quick look, they do look like good value I must say.

[Snaagi]

 

Sadly everything is escalating at a ridiculous rate. Combination of industry greed that's supported by the growth in the sport, supply chain issues, general inflation, *** currency, heavy shipping rates and a smaller buyer market....it all just means prices sky rocket.

Growing up we could never afford a new bike, got older earned more money, couldn't JUSTIFY buying a new bike cause you pay a fortune for something that you still need to upgrade.... rather just stayed in second hand market and built up bikes to spec I actually want, end up riding top end that's maybe a year or 2 old but spent half the money.

Gotta remember.... you don't need to keep up with Jones's, just be a better rider and overtake them haha

[dasilvarsa]

It's Not Just about High Prices.

The Market is Full of Rubbish Generic Bikes and Components at High Prices and to be found at the Top Shops.

“caveat emptor”

Make sure that what you are buying actually does what it says it does and that it suits your discipline in the sport of cycling.

Don't be Blinded by Glitter.

[vanniri]

Anyone remotely interest in this subject will do well to read the industry view report following the Sea Otter Classic in the US.

See Singletrack magazine for the report.

Edited April 29, 2023 by vanniri