Joe Bender-Zanoni wrote:
By 1974 (introduction of the Dura-Ace SP I think) it was a whole new pricing ballgame and the Dura-Ace brakes were never in the $30-35 price range.
It went like this, in 1972 high interest rates and a period of high inflation caused Nixon to declare a price freeze. Foreign prices climbed anyway (of course) and everyone who imported bike parts was screwed. Schwinn got stuck at the price of $350 for the complete Campagnolo bike less brakes bike and the back orders went to a year because it was evident that prices had taken a step function leap on all imported goods.
When the dust settled in 1974 upper grade bikes sold for $450+, Universal 68 brakes sold for $29, $60 would be a great price for the Dura-Ace and I think you could sell the Campagnolo all day for $99 retail if you could get them.
We can't imagine a US president declaring a "price freeze" today, so we tend to forget the effect on the economy at the time and the bicycle industry in particular. In a nutshell, at the height of bicycle and part demand, the government dictated prices and the supply of imported goods stopped. Once the restraints ceased and supplies returned, prices were up 30%.
Even more broadly, in the US, pre bike boom and post bike boom collecting are two different kettles of fish as the quantity of quality bikes sold after 1970 increased tenfold.
Joe, it might have felt like that, but Nixon's Phase I wage and price controls went into effect in mid August 1971. Also with that came an immediate additional 10% additional import tarif. Not all aspects were held the same length but for the next three years various aspects of those changes were in effect.
As I was saving for my first "good" bike at the time it was very hard to watch prices inflate rapidly in anticipation of those controls, If one searches Google with:
nixon wage and price controls
it will assist your memory, but a tough time it was. Schwinn was caught with a shrinking margin for its most costly bicycle though.
I just remember too much history for my own good.
John Jorgensen
Palso Verdes Ca USA