View Full Version : Madone Inflation


Raymo853
01-27-2008, 05:19 AM
Currently the Madone 5.2 Pro is listed as $3630 and the non-pro 5.2 at $3680. I thought I read some reviews stating the prices were a good bit lower, `$3200, when they first caem out. Does anybody know the history of the price increases on the 5.2?

WhiskeyNovember
01-27-2008, 06:01 AM
It's not about INFLATION, it's about DISCOUNTING.

The prices you quote are the actual MSRPs as listed on trekbikes.com. The lower prices you hear of (like $3200) are examples of dealers offering discounted prices.

zac
01-27-2008, 07:10 AM
What WN said...It's MSRP. The local shops are selling at ~10% discount. Some much lower depending on your relationship with them.

What I find more curious is the price differentials: does the Ultegra compact/triple cost $50 more than a std double? And if so, then why not the same for the 5.5?

Why is the 6.5 WSD the same price as the 6.5 Pro, yet it has lower end cranks and arguably lower end shifters?

Zac

PJ352
01-27-2008, 07:56 AM
I think Whiskey and zac are missing the point of the OP's question. While it's true that the MSRP is around $3,630 and discounted prices are, in general, around $3,200 - $3,300 he's asking about the history of the MSRP increases.

Ray, you're remembering correctly that, when the new Madone 5.2 was first introduced back around June, the estimated MSRP mentioned on Trek's website was around $3,200. When the 'official' introduction was made a couple of months later, the current price of $3,630 was listed.

Not much of a history, but those are the facts.

WhiskeyNovember
01-27-2008, 09:17 AM
he's asking about the history of the MSRP increases.

Ah, good point, PJ. I misunderstood the original question.

As for why the MSRP has changed over the past 6 or so months, only the product managers can answer that. It could be because of an increase in production costs, it could be due to an increase in the price of raw materials, or it could simply be because that's what people are willing to pay.

I'm sure people will argue endlessly about what the reason is, but the fact is, only the product managers know the whole story and the true answer.

FondriestFan
01-27-2008, 12:41 PM
If people are willing to pay a higher price, Trek is behaving as any rational profit-maximizing firm would do by raising their price. I see no problem with it.

PJ352
01-27-2008, 02:32 PM
I'm no Trekie, but for accuracies sake, I feel the need to set the record straight...

Initially (at introduction - around June) Trek estimated what the MSRP was going to be and when production ramped up (around September), the MSRP was nailed down (for lack of a better term) to the current price. So, from introduction and estimated MSRP - $3,204 (or something like that) to the current $3,629 originally posted on their website and still current, there has been no increase. I'm using 'pro fit' prices here, but the logic applies to the performance models as well.

Technology being what it is, I'd hazard a guess that in a year or maybe two you'll see a drop in the MSRP, but don't quote me on that. If demand continues to exceed supply, the opposite may be true, proving Fondriestfan right.

Raymo853
01-27-2008, 03:50 PM
Thanks PJ for the info.

California L33
01-28-2008, 11:34 AM
It's lucky Lance isn't still riding. The price would $4129 :)

PJ352
01-28-2008, 02:26 PM
It's lucky Lance isn't still riding. The price would $4129 :)
... and the wait would be 8 months instead of 4. But I'd guess it'll be up to 8 by spring time.