Now if only you could cruise around on your cool new KOF frame with a scantily clad trophy babe on the sissy seat - there would really be something to this analogy.
I just don't think this analogy flies. In cycling - "less is more". In motorcycles, cars, etc., "more is not enough" The culture of cycling is not about conspicuous consumption so I find it hard to see a big rush for the ultra-rich to buy ultra-expensive bikes - as a gross generalization (and I am sure there are exceptions) they're not into the bike culture scene and who would they be impressing with their ultra-expensive bike. It's just not something that has that kind of cache in my mind. If there was a way to market this way - the big buys would have been doing it long ago(bikes as part of a conspicuous consumer mindset). I think there are more expensive bikes in the market ridden by not so in-shape riders than ever before.
In this thread - I tend to agree that there is more headroom in pricing for the perceived best of the best in the market. Beyond that - it's pretty much where it ought to be (not saying that is right or wrong - just the market finding it's own level). If you have a multi year waiting list - that says you've got head room. If you've got 6 weeks - better do some more work to increase your wait list before hiking your prices. Sachs is the only one in the market that has done what it takes to seriously deal with his branding. Even so - in the big market - he is virtually unknown/invisible because he can't compete with the Lance/Trek/pro tour marketing campaigns of the big manufacturers etc.
The NAHBS is one way that the hand made builders are using to get some visibility and enhance their perceived value in the bigger market. I think it's great and well deserved. I hope it will keep more of these creative and passionate builders in business and hopefully will help them yield better margins for their work in the long run.
Roman Stankus Atlanta, Ga.
-----Original Message----- From: firstname.lastname@example.org [mailto:email@example.com] On Behalf Of LouDeeter@aol.com Sent: Wednesday, March 15, 2006 4:32 AM To: firstname.lastname@example.org Subject: Re: [CR]Survey Says: keep KOF prices where they are...:-)
Don Wilson said: but $10K to $20K for a bike, if custom bikes were marketed correctly and effectively, wouldn't even make today's wealthy blink.
This past week was "Bike Week" in Daytona. The event has spilled over big time into Orlando. And, we're not talking about pedal power bikes. These are the motorcycle variety. And, Don's right, wealthy people will drop a ton of
money for the right item. I was talking to a guy in the office yesterday and he told me about a bike that was on the market in Daytona for $137,000, with a $40,000 paint job. These custom choppers are extraordinary works or art (whoops, there I go again). I believe prices are creeping up for great custom bicycles and their paint, but if the crowd that descends on Cirque is any indication, I doubt we'll see any of them dropping even $20,000 on a custom model anytime soon, at least not a new one. Some of the old, historically significant bikes might fetch that though. The number of people chasing the product does have a BIG thing to do with pricing--I think the economists call that demand. Take a look at how many people come to Bike Week in Daytona, how many attend
and watch Barrett-Jackson Car Auctions, and how many come to Cirque or VeloRendezvous. Do you catch the drift here? Lou Deeter, Orlando FL