Many factors (not just parts and labor) have led to rising bicycle costs.

Expensive is a relative term: it may be a lot of money for college students, but it may not be the case for dentists. But for the sake of argument, we will think that an expensive bicycle is enough to make you think twice when buying.

Market Economics

The price of bicycles is partly affected by the market economy. Products with too high prices will appear in inventory; products with too low prices will not be able to recover production costs and management expenses. Determining the price point is some trial and error and some market research. Most bicycle brands have established a price range; although new bicycles may change every year, the price point has not changed much.

Research and design

The aerodynamic test facility built by Specialized—“Win Tunnel”—and all the time Zipp engineers spend in CFD modeling of its new sawtooth wheels must be compensated. Add in staff time, materials for test iterations, and manufacturing costs for each test item, and you can understand why R&D becomes expensive and must be borne by the final sale of the product.

Materials

One of the biggest factors affecting the cost of bicycles is the material. Carbon fiber comes in many forms and grades. The higher the quality of carbon, the higher the cost of purchasing from the manufacturer. This includes the need for more care during refrigerated transport and cold storage, as well as the need for greater precision and attention to detail when manufacturing new bicycles. If the bicycle manufacturer also manufactures its own carbon fiber, it must recover that cost from the bicycle's selling price.

Manufacturing

Higher quality materials require more care in the manufacturing process. "Clean" welds on aluminum bicycle frames require more attention-even if robots are welding, someone needs to supervise the process. The shape of the aerodynamic frame composed of carbon fiber panels requires consistent and precise assembly in a very controlled process with very tight tolerances.

Quality Control

One of the factors that distinguishes well-known bicycle brands from department stores and ordinary bicycle brands is quality control. Engineers from well-known brands regularly visit their manufacturing plants to check all aspects of the bicycle manufacturing process.

Looking back at some online groups that bicycle mechanics participated in, one of the most discussed topics was the lack of quality control in the materials used and the assembly of generic and counterfeit carbon fiber bicycles and parts.

Customization

Every deviation from the standard production model increases costs. Although it is good to have the color or specific part group you want, for example, changing the stem length requires interrupting the normal assembly process, thereby increasing costs.

What is the "value for money" of expensive bicycles?

There is no upper limit on the price of new bicycles, and prices will continue to rise. A bicycle with great value for money will make you excited, you can afford it and meet your riding needs.

An excellent way to ensure that you get value for money when buying a new bike is to buy it from a local bike store or a specific manufacturer of the bike. Avoid buying bicycles in "hypermarket" stores.

Consider bicycles from previous years; usually, but not always, current model bicycles have the appearance of the previous year and may be discounted for quick sales.

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