View Full Version : How do they price cycling goods?
truman 06-28-2007, 03:21 AM I ripped out an advertising insert in the Velonews Tour de France preview magazine and before depositing it in the trash flipped through it. I was shocked to see Rapha trying to sell gloves marketed for riding a fixie for $150. Does anybody really buy those things at that price? Clearly they can't be five times as functional as the $30 gloves that I typically buy. Aesthetically they looked just like any other pair of black cycling gloves. What am I missing here? If a product doesn't make me faster, or make cycling more comfortable, or last significantly longer, or in some other way make it a more enjoyable experience why should I pay a premium price for it? Perhaps I'm just too old to get the "cool" factor. Educate me please.
Len J 06-28-2007, 03:45 AM Pricing any consumer good is based on what the market will bear.
In the case of something like Rapha, there is an "Exclusivity premium". There is a segment of the market that will pay a premium just to be able to buy something that others can't (or won't) afford to buy.
Capitalism is wonderful, if you don't think something is worth it.....vote with your wallet.///don't buy it.
People whine about the $140 Rpaha gloves (Myself included) but think nothing of paying $3,600 for a Colnago c-50 frame & fork that probably has $800 worth of cost in it to build, or $200+ for some carbon bars that have nothing on a good pair of Aluminum bars that cost 1/3 as much, ........I could go on but you get the point. (BTW, I'm not picking on the c-50, I could substitute just about any high end frame, including some I own).
Very little that we spend our cycling dollars on provides incremental value equivilant to the incremental price over base products. Look at pre-manufactured wheel prices.
It's all marketing and perception with some incremental gains.
Len
teoteoteo 06-28-2007, 06:41 AM I ripped out an advertising insert in the Velonews Tour de France preview magazine and before depositing it in the trash flipped through it. I was shocked to see Rapha trying to sell gloves marketed for riding a fixie for $150. Does anybody really buy those things at that price? Clearly they can't be five times as functional as the $30 gloves that I typically buy. Aesthetically they looked just like any other pair of black cycling gloves. What am I missing here? If a product doesn't make me faster, or make cycling more comfortable, or last significantly longer, or in some other way make it a more enjoyable experience why should I pay a premium price for it? Perhaps I'm just too old to get the "cool" factor. Educate me please.
Rapha stuff is expensive. The line is also very limited, and focused. I've seen much of it at the Etape Village the last few years in France. I don't have that kind of money, but the gloves were far nicer than any I've ever put on. I get stuff at below wholesale but some of the Rapha stuff is very tempting. Whatever they are doing is working because they sell out that damn booth of stuff every year.
jderreks 06-28-2007, 09:31 AM keep in mind that since most of our biking stuff is made outside the us, there are some pretty good import tariff's on bike parts. Seems silly I know. And add to it the considerable cost of shipping. I realize that really doesn't answer the question about some gloves, but it does answer the colnago cost thingy (as I look at my Time and think about it's cost...)
TurboTurtle 06-28-2007, 01:54 PM I ripped out an advertising insert in the Velonews Tour de France preview magazine and before depositing it in the trash flipped through it. I was shocked to see Rapha trying to sell gloves marketed for riding a fixie for $150. Does anybody really buy those things at that price? Clearly they can't be five times as functional as the $30 gloves that I typically buy. Aesthetically they looked just like any other pair of black cycling gloves. What am I missing here? If a product doesn't make me faster, or make cycling more comfortable, or last significantly longer, or in some other way make it a more enjoyable experience why should I pay a premium price for it? Perhaps I'm just too old to get the "cool" factor. Educate me please.
You pay $30 for gloves? I guess 'premium' is a relative thing. - TF
abiciriderback 06-28-2007, 02:02 PM When I had my Triathlon Shop in Southern CA early 90's pricing was that very little was made on frames or bikes if lucky 20-30% the keystone items were the accessories tubes were marked up about 200%. That was way back then may have changed by now. Don't see how the mom pop shop keep the oors open nowdays with all the gray market product floating around on the internet I guess it they survive because of SERVICE and impulse purchases.
Ray Still
MikeBiker 06-28-2007, 02:07 PM Why are there special gloves for riding a fixie in the first place? Do they sell special fixie shorts and jerseys?
ethebull 06-29-2007, 12:48 PM Rolex, Gucci, Coach, Rolls Royce, B&W, ... pick a consumer good. There's always a super premium high end brand that finds a niche, or creates one.
blackhat 06-29-2007, 03:08 PM Why are there special gloves for riding a fixie in the first place? Do they sell special fixie shorts and jerseys?
lol. isn't there a side banner ad here today with chrome's "urban shoe", essentially for fixed city riding? I think the fixie shorts would either be cut off dickies or hypnotic designs or under the weather brand knickers depending on budget.
Visitor302 06-29-2007, 08:24 PM Well,, cycling stuff in general is priced in the folowing manner....
Determine actual manufactre cost,,, Add normal retail markup percentage. THen take that number and multily that by 2. For premium items, mark it up X 2 again...
jeebus 06-29-2007, 10:05 PM They do sell a $70 t-shirt for riding fixed. Don't ask me...?!
i saw it on Competitive Cyclist.
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