[CR]Heron bicycle prices mighty fair

(Example: Humor:John Pergolizzi)

Date: Sun, 14 Jan 2001 18:12:40 -0700
To: Jerry & Liz Moos <moos@penn.com>, CYCLESTORE@aol.com, Classic Rendezvous <classicrendezvous@bikelist.org>
From: "Bicycle Classics inc" <bikevint@tiac.net>
Subject: [CR]Heron bicycle prices mighty fair

Regarding the Heron pricing issues, as a dealer of a competing bicycle brand (Waterford) I'm a tad surprised that folks would be critical of a Heron even if the price approched $1,000. This is for several reasons.

1) There are things that go into a Heron that do not go into the Mercian. Grant did a lot of homework on the project and Heron's really do ride quite nicely. I don't know that I like it as much as a Waterford RS-11 or adventure cycle, but the Heron is really nice. Many frames regardless of price don't ride as well.

2) In the real world, compared to many bicycles costing much more, the Heron embodies much more workmanship and detail. Compared to most Italian frames that wholesale for $1,000, the Heron in many ways is nicer.

3) The Mercian which is the source of comparison, doesn't have a dime of resale value compared to many other frames. This is based on our own efforts to sell used ones, and a simple examination of what the fancy Mercian models sell for. This low resale may not be deserved, and I don't agree with it either, but it is the way it is.

4) Mercian frame pricing may be a fluke. In reality, the cost of materials alone to build a frame for most builders in the US may approach $200. Add the cost of paint if not done in house, and you're up to $ 325 or more. Now factor in wages for half a weeks work, and overhead, and its easy to see why a good frame needs to wholesale for $600 to $700 for a company to break even. Add in a mark-up for the dealer, and you're up to $1,000 just to play ball.

To say that a frame which sells for $1,000 is too expensive is essentially saying that it is unreasonable for a framebuilder to produce a product and sell it on a retail level in the marketplace. When people, especially traditional bike loyalists uch as those on this list, start saying this, I become fearful for the economic feasability of frame manufacturing as we love it. Just my thoughts, Mike Kone