R400k Bikes, Deconstruct for Discount? Discussion on bike pricing.

[RoadNoob6]

Hey hubbers, half rant half point for discussion, half the-answer-is-obvious.

Checking the Cycle Lab website I see they've listed the Colnago V5RS for just under R400k. My question is, was this figure purely pulled out of a bum arbitrarily and is that how we're pricing bikes now? Or is it pure supply and demand as in someone will pay it so why not?

 

I know bikes in general don't need to cost what they do but we generally accept that bikes are priced in tiers according to spec/prestige etc, so 105 bikes will cost x with varying prices according to prestige, Rival will cost 105 plus slightly more or less depending on Sram stock etc (although the new Rival group is cheaper?).

 

BUT if we buy a V5RS frame from Sigma sports in the UK for example, you pay 120k - 150k if you want to include all the parts handlebar etc., then dura ace group and Enve wheels, it doesn't reach 400k from what I can see... So is it for the first time CHEAPER to actually buy a frame and build up from there simply because Cycle Lab decided they're going to price like silly-billies? They still list the Dogma F  at 200k - 260k so is it just Colnago they're pricing up due to supposed scarcity and Pogflation?

 

I know not all of us have friends in the UK through which we can buy frames and parts and bring them over etc, but I feel like people who could buy a bike for more than 200k probably do... So what is Cycle Lab doing?

[Robbie Stewart]

My thoughts are that cycling in general has become a bit of a "brag" sport. And the people who fork out the money are the ones to blame. They feed the monster. 400k for a bicycle. In what universe does that make sense? Like SRAM bringing out a new Eagle 1987 T-Type group set that sells for over 60k depending on who you buy it from. 

Then you only have to look at events like the Epic, and the sponsors they attract. Cycling has become a prestige sport for the well-heeled, funded by the masses who splurge life savings to say they also ride the latest and best. Even if they got ripped to the moon and back in the process.

[DieselnDust]

its purely prestige money. True value is what it would sell for 2nd hand. I'm in the keep what you have for as long as it is serviceable and replace with a 1yr old barely ridden bike from someone upgrading to keep up with the Jones'es

[dave303e]

Easy decision if I had 400k lying around. 

[Wannabe]

20 minutes ago, DieselnDust said:

its purely prestige money. True value is what it would sell for 2nd hand. I'm in the keep what you have for as long as it is serviceable and replace with a 1yr old barely ridden bike from someone upgrading to keep up with the Jones'es

I agree. My roadbike is circa 2009, my Mtb is circa 2013, my Gravel Bike the frame circa 2019, built up with a mix match of "leftovers"

Will a 400k (or even a 40k) bike make me any faster or give me more joy, I doubt it. My bikes are all well looked after and serviced, everything on them work as it should, it is up to me to make them move and therein lies the limiting factor.

 

[Super Sywurm]

With 400k, I can buy a garage full of bikes and even a garage for my bikes.  That would totally be more enjoyable than 1 bike. pfffft

[Dri]

I find the whole cycling snobbery and anti snobbery (is that a term?) pretty weird. People who look down on people with more budget builds are equally as tiring as people who look down on people who spend a lot of money on their hobbies.

If you can afford a 400k colnago, ride once a week and that's what you want then go for it 👍 

[DieselnDust]

12 minutes ago, Wannabe said:

I agree. My roadbike is circa 2009, my Mtb is circa 2013, my Gravel Bike the frame circa 2019, built up with a mix match of "leftovers"

Will a 400k (or even a 40k) bike make me any faster or give me more joy, I doubt it. My bikes are all well looked after and serviced, everything on them work as it should, it is up to me to make them move and therein lies the limiting factor.

 

There are many who believe they will not be competitive without having a top of the line bike similar to what Professional Elite racers use. The reasoning is, "making sure the bike is not the limiting factor".

Some people just love nice things, diamond rings, expensive everything......and R400K bicycles fits the bill. Whatever floats their boat, we're all different.

I've mostly used XT, XO1, Ultegra level components. Splurging out on the top of the line makes the bike look nice but its still only as fast as I can pedal it and often the 2nd and 3rd tier kit lasts longer and is easier to live with.

Is it perverse to sell a R400K bike? I don't think its the selling price that irks me, its the mark up from R7000 to produce the frame to R400k on the shop floor. That a lot of added value that does add up incrementally

[Paul Ruinaard]

FYI - you are all thinking about the problem incorrectly. At a certain level of wealth you need to understand that people buy it precsiely because of the R 400k sticker.  For them, if you can afford anything, then everything is value less.

Therefore anything that is ridiculously costly is appealing. The motivation is therefore because its so expensive.

Prestige is the motivation.

FYI : The best close line I learned and have used is to tell the prospective customer who is looking at the high end unaffordable item, that the solution they are looking at is likely too complex, too expensive or especially too advanced for him. If they are serious and have the money they will immediately counter and tell you whay they can afford it and watch him qualify in why he needs it, has the budget and is capable of running/driving/riding it.

This technique is a sales technique called stripping line. When the fish initially bites, you don't strike - you give him more line. That way he swallows the lure whole and you hook him completely.

If he hasnt got the money and is just kicking the tyres he will walk away. But you lost nothing. If he has you have likely got a deal - might as well hand him the keys.

In this case the lure is the R 400k price tag.

 

Edited October 14 by Paul Ruinaard

[F@yino]

44 minutes ago, dave303e said:

Easy decision if I had 400k lying around. 

I’d still take the Colnago over this. Wouldn’t even ride it. I’d legit just leave it in my garage so that I could admire it every morning whilst I get in my car & go to work.

[Shebeen]

35 minutes ago, Dri said:

I find the whole cycling snobbery and anti snobbery (is that a term?) pretty weird. People who look down on people with more budget builds are equally as tiring as people who look down on people who spend a lot of money on their hobbies.

If you can afford a 400k colnago, ride once a week and that's what you want then go for it 👍 

uh mean you can get a set of 3 Lamborghinis in the same colour or 20 of these bikes?

https://mybroadband.co.za/news/motoring/613836-supercars-and-houses-worth-r149-million-seized-in-r2-billion-tender-fraud-investigation.html

 

[Shebeen]

28 minutes ago, Paul Ruinaard said:

FYI - you are all thinking about the problem incorrectly. At a certain level of wealth you need to understand that people buy it precsiely because of the R 400k sticker.  For them, if you can afford anything, then everything is value less.

Therefore anything that is ridiculously costly is appealing. The motivation is therefore because its so expensive.

Prestige is the motivation.

FYI : The best close line I learned and have used is to tell the prospective customer who is looking at the high end unaffordable item, that the solution they are looking at is likely too complex, too expensive or especially too advanced for him. If they are serious and have the money they will immediately counter and tell you whay they can afford it and watch him qualify in why he needs it, has the budget and is capable of running/driving/riding it.

This technique is a sales technique called stripping line. When the fish initially bites, you don't strike - you give him more line. That way he swallows the lure whole and you hook him completely.

If he hasnt got the money and is just kicking the tyres he will walk away. But you lost nothing. If he has you have likely got a deal - might as well hand him the keys.

In this case the lure is the R 400k price tag.

 

That's exactly how perfume sells, or other high end fashion. Got nothing to do with the input costs. 

We should call these Louis Vuitton bikes or something similarly ridiculous.

 

 

 

[Ispeed_V]

It's ridiculous. 

Same applies to Luxury vehicles.

Case in point. A Toyota Tundra Pick Up that costs roughly $50K - $70K in the USA, is being sold in SA for a cool R4 million. How that is even justified, I will never know.

[thebob]

20 minutes ago, Ispeed_V said:

It's ridiculous. 

Same applies to Luxury vehicles.

Case in point. A Toyota Tundra Pick Up that costs roughly $50K - $70K in the USA, is being sold in SA for a cool R4 million. How that is even justified, I will never know.

No, that is not a correct comparison. The Tundra is a North America only vehicle that has to be sourced from a dealer, exported from the USA, shipped to SA, imported and then converted to RHD. Custom parts, labour, transport and duties play a big role in the resultant price. I'm not saying the price is not ridiculous, but the costs run up very quickly in that business model

[Irvin85]

14 minutes ago, Ispeed_V said:

It's ridiculous. 

Same applies to Luxury vehicles.

Case in point. A Toyota Tundra Pick Up that costs roughly $50K - $70K in the USA, is being sold in SA for a cool R4 million. How that is even justified, I will never know.

That Price actually makes a lot of sense, The Tundra trucks are made in USA, so left hand drive only. 

Base costs for the tundra to import lets take the higher end $70k conversion to RHD will cost you close to $30k additional. So you will look at a base cost of $100k + Shipping and Freight $7000, Port handling $600, Marine insurance $2000, Customs clearing $1000, Duties of 25%, VAT 15%. 

Rough figure of around $160k to land the vehicle in south Africa. Around R2.8mil in SA landed. and then the guy needs to make some money on it as well. 

[Mike Dewing]

Saw a Y1RS the other day.. very underwhelming.. coolest thing about it was the three white ENVE decal wheels 🤷🏼‍♂️🤣