Mike, I'm not saying the Heron isn't better than modern frames selling for much more. It is. But for those who know a bit about classic-style, hand-built, lugged steel frames, Mercian and several other British bikes are an even greater bargain. And I think the fact is that a significant piece of Heron's market, which is a small niche market to begin with, is among collectors who are aware of the British marques. And as long as the £ is around $1.50 US, this is going to make it more difficult to sell Herons for $1000. At their original prices, I had considered both a Rivendell and a Heron, but the price increases just made something else look like a better buy. Since it is mostly the strong dollar that makes the British bikes look cheap in the US, one can't assume the British builders will simply raise their prices, as they might fear this would kill their demand in UK. The US classic-style builders competing with British builders have a dilemma. On one hand they might wish that the hot US economy of the last few years will cool off and weaken the $ versus the £. (There are signs this may happen). But since handbuilt cycles are a dicretionary purchase and something of a luxury item, an economic slowdown, which reduces consumer spending, might shrink cycle demand, even though it reduces competition from UK. Enonomics, like war, is hell.
Regards,
Jerry Moos
Bicycle Classics inc wrote:
> 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