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What makes a bicycle so expensive?

There are some brands of bicycles that can cost more than the down payment on a car. Why? Surely making a bike lightweight and reliable isn't so difficult that it warrants that price? Is it just the brand name or maybe it has to do with customization options?

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  • Mountain bikes have to be lightweight and strong, and production volume is low. Suspension design takes R&D, and adds moving parts. Start pricing components and you hit $5000 easy for a full-suspension bike. For hardtails, you are making a lot of compromises at $1500, but $2500 gets you a nice bike.

    For road/gravel bikes, once you get over $2000, you are paying a lot of money for tiny weight savings, negligible aerodynamic improvements, and electronic gizmos.

    For either mountain or road, if you want a custom/hand-made frame and parts made in the developed world paying living wages, you are going to spend a lot more. Taiwan makes a lot of great frames, but if you want a frame made buy a dude in Denver who names all his bikes after craft beers, add several grand.

    For city/commuter bikes, you can get something perfectly good for under $1000, but if you can swing $2000, get a Brompton.

  • I can only on road bikes as that’s what I ride. But it seems like the biggest factor that drives up prices is a combination of weight and aerodynamics.

    For just regular people, If you know where to look you can get a high end bike that was unfinished at the factory and didn’t get painted/stickered/branded and pay a fraction of the price. A lot of time the branding is what really drives up prices.

    But in the very high end it’s really all about weight and aero. Professional racers will pay a hefty premium to knock a few grams off of their bikes total weight, or to get parts that are more aerodynamic and thus give you better power transfer between your bike and the road.

    And then the lighter you want to get, you start getting diminished returns, and exponentially higher prices. Like if you compare a 3 pound saddle to a 1 pound saddle it might be a little bit more expensive. But then if you have a 150 gram saddle and want to get a 100 gram saddle that might be 20x the price.

    Lighter parts also have to sustain the same amount of forces (and sometimes much much more) as their heavy duty steel counterparts so finding things that can undergo this amount of stress and not break plays into it as well.

    And this doesn’t even go into materials. The big new thing is titanium bikes which are ridiculously expensive but will last several lifetimes if taken care of. And then carbon fiber is difficult to make and even more difficult to make well. Much lighter and than other materials but really only flexes in one direction and can be really fragile if under the wrong type of stress.

  • Gotta think about what it takes to develop a product, combined with the size of your workforce, and the size of your consumer base.

    A massive company like CCM can make a decent, cheaper bike because they have mass production facilities on their side. However, those bikes, serving massive consumer bases, are probably more of a "one size fits all" type solution.

    Want something more bespoke? Thats usually when you look to smaller companies. They usually have a much smaller team, and that means the product takes a lot longer to develop; prototyping, testing, reiteration, etc. That all costs money, and that has to be recuperated. These companies are usually made up of people who know some consumers are into the product enough that they want a custom tailored version of it, and know they are willing to pay for it, and wait for it.

    As for brand image, thats probably part of it for some people, but I personally know a couple people who have very nice custom bikes with little to no branding. They're into it enough that what matters is the quality and performance.

  • economies of scale: high end components aren't manufactured in enormous quantities. their price has to pay for everything along the supply chain plus profit.

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