Rider salary and Bicycle price

Mar 14, 2009
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Hi,

In the past, I have seen few bike prices increase dramatically from one year to the next (especially the price of the frame I bought in 2005 which increase by almost 250%) just because the bike manufacturer starts to sponsor one top team. We see more and more bicycle being far over the 10.000 €.
In the same time, we are seing one team supposed to have a 10M€ budget and have two riders over the 3M€ per year. I'm just wondering how they are doing to keep their budget and if most of the money we spend it's just use for sponsoring and advetissement. We should have a view has a consumer on the ratio they use for sponsoring/advertissement vs production cost. I like cycling very much but I will never trust one of the top rider and I don't want to give their my money as it's occuring now. In the past, bike manufacturer were not title sponsor and were just providing the bikes. What we see with Specialized, BMC or Treck where they play a key role on the decision and pass directly contract with rider disturb me a bit.
 
Well, whatever you buy, the price for that product's advertisements are indirectly included. I've read that pro team sponsorship costs a bike company in the ballpark of 2 million dollars, and while that's a lot of money for a cycling team, I don't think it really registers much on the expenses of big companies like Specialized, Giant, Trek, Look, etc. I don't think there's a direct correlation between the increasing budget of cycling teams and the cost of bicycle frames.
 
Much of the price increase is due to R&D. Technology is moving so fast and it costs a lot of money. It is a race by manufacturers to put out the latest incremental change whether it is marginally lighter, stiffer, more aero blah, blah, blah. The molds for some of these carbon frames cost up to $250k. They need to get their investment back ASAP. Of course some companies milk it for all it's worth. Cervelo P2 and P3 have not changed in years yet they still charge the same. And actually they were better pre 09.
Being a bike geek I like to see a lot of it. But don't get caught up in all the hoopla. The best riders are the best whether on a Pinarello or a Huffy. The bike companies do want the best riders on their bikes however for obvious reasons. How that translates into sales is debatable.
 
Mar 14, 2009
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I have a Roubaix S-Works and the frame jump from 1500€ to 3500€ in 2005 just because Specialized start to sponsor Quick Step and Boonen was supposed to Win Paris Roubaix with that bike so let say its value increase. I'm sure that there is development cost but as I said, in the past, Bike manufacturer were not team sponsor number 1 to 3. Eventually they could afford a small mention on the jersey.
What we see with:
- Treck acting as the main actor for the merging between two top teams
- Specialized last year being responsible for the transfer of Contador and having a personal contral with contader (Saxo Bank alone could not afford Contador
- Specialized again this year acting to try to merge two top teams as Treck did (they are only rumours but we could imagine they try as it make sense)
- BMC spending 6 Millions at least for 2 riders (when they are supposed to have 10 Millions for the team)

You have to sell a few bikes to arrive to that level of involvement or you may say: I will increase my margins.
 
Mar 22, 2011
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veganrob said:
Much of the price increase is due to R&D. Technology is moving so fast and it costs a lot of money. It is a race by manufacturers to put out the latest incremental change whether it is marginally lighter, stiffer, more aero blah, blah, blah. The molds for some of these carbon frames cost up to $250k. They need to get their investment back ASAP. Of course some companies milk it for all it's worth. Cervelo P2 and P3 have not changed in years yet they still charge the same. And actually they were better pre 09.
Being a bike geek I like to see a lot of it. But don't get caught up in all the hoopla. The best riders are the best whether on a Pinarello or a Huffy. The bike companies do want the best riders on their bikes however for obvious reasons. How that translates into sales is debatable.

Ironman World Champion dis-agree!!

http://triathlon.competitor.com/2011/09/news/craig-alexander’s-un-branded-bike_38935
 
Mar 22, 2011
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veganrob said:
Good point rob.
Toolittle also proved your point that riders will win on whatever they ride. I believe Alexander also won to IM Kona on an Orbea.
Why you answer your own option?
Forgot to change account?

Craig Alexander choose to use Unbranded Bike instead of Ordu. It is his option, not mine.
 
toolittle said:
Why you answer your own option?
Forgot to change account?

Craig Alexander choose to use Unbranded Bike instead of Ordu. It is his option, not mine.
It was a joke.:D And I did not change my option.:rolleyes:

My point was, Crowie has won two IM Kona on the Ordu. And he wins because he is a superior runner. Look up the splits. As for the "unbranded" P4, yes, his choice. IT could be fit issue or something else. I happen to be friends with his coach/fitter.
 
Mar 17, 2009
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lecedre said:
I have a Roubaix S-Works and the frame jump from 1500€ to 3500€ in 2005 just because Specialized start to sponsor Quick Step and Boonen was supposed to Win Paris Roubaix with that bike so let say its value increase. I'm sure that there is development cost but as I said, in the past, Bike manufacturer were not team sponsor number 1 to 3. Eventually they could afford a small mention on the jersey.
What we see with:
- Treck acting as the main actor for the merging between two top teams
- Specialized last year being responsible for the transfer of Contador and having a personal contral with contader (Saxo Bank alone could not afford Contador
- Specialized again this year acting to try to merge two top teams as Treck did (they are only rumours but we could imagine they try as it make sense)
- BMC spending 6 Millions at least for 2 riders (when they are supposed to have 10 Millions for the team)

You have to sell a few bikes to arrive to that level of involvement or you may say: I will increase my margins.
You have your figures wrong.

Specialized's S-works was $2800 in 2004 & 2005, $2800 in 2006 despite going full carbon, $2800 in 2007 & 2008, finally rising to a heady $2900 in 2009. It has only just nudged $3k in 2011, a ride of less than 10% in 6 years. Where you get 250%? The RRP has barely increased in real terms.

Their involvement with QS would have had no effect on the price of frames or bikes at all.

There seems to be a perception that bikes have suddenly become super expensive. Not so, it has always been possible to pay silly money for a bike. Remember ICS who tweaked original Super Record in the 80's? They charged an arm and a leg for their stuff at a time when £1000 for a top flight Colnago or Pinarello was the ceiling for a road bike.

To berate Specialized or Trek for charging what is still a pretty reasonable price for a road bike is daft. Cervelo charging almost $10K for a frame because it's made in the US by hand is taking the mickey IMO. If that's the case why don't Time charge similarly for an RXRS? It's made in France and from in-house woven carbon unlike the pre-preg Cervelo foist on their customers.
 
May 11, 2009
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ultimobici said:
........................... It's made in France and from in-house woven carbon unlike the pre-preg Cervelo foist on their customers.
Some prepregs are higher cost and possess better characteristics than non-prepreg cloth/epoxy combinations. Some pre-pegs have limited shelf life and/or require refrigeration while in shippment/storage
I work in aerospace and see both options being used depending on the end use. But regardless of material form it is the tooling and autoclaves that are the often major cost drivers in an end product.
 
On the whole sponsors, including bike manufacturers, spend sponsorship money because it gets their name out there and increases sales. They wouldn't do it if it drove up costs to customers significantly.
 
Jun 7, 2009
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if i were a pro rider...

I would thought like this...

f**k salary...

f**k everything...

I want just win...

sometimes me & my friends climb...

sometimes I drop them all...

& I get a fantastic feeling...

and I thought few times... about what feeling pros get when they win...


this is te best thing you can get from a cycling...

I wish for every cyclist to have a win...

and they all deserve to be a billioner...

one billion or tour de france stage win...

what should you choose...???






I'm drunk as f**k
 
May 17, 2011
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bikes are just generally overpriced, nowadays its not easy to own more than one bike (unless you are loaded) which is crucial to maintaining a steady training schedule.

Cervelo is pure insanity.
 
Mar 17, 2009
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Mshengu said:
bikes are just generally overpriced, nowadays its not easy to own more than one bike (unless you are loaded) which is crucial to maintaining a steady training schedule.

Cervelo is pure insanity.
Utter balderdash!

Any rider who assumes that they need Super Record to compete is deluding themselves. Teams at Pro Conti level are perfectly fine on Chorus. To say you have to have two bikes is also misguided. Race wheels & training wheels takes care of that.

In 81 when I started paying for what I rode a top flight bike was £600 give or take. I earned £79 a week before tax so more than double my months income. If I apply the same ratio to my income now, a bike that is of a similar level to the old one is more affordable.

On any given weekend in Italy you'll see hundreds of guys out on their bikes, bikes of all vintages & values. The funny thing is it is the guy on a 10 year old alloy framed bike still running 8 speed who drops you on on that climb. Likely as not the guy who gets dropped is the one on the tricked out carbon machine who mistakenly thinks he can buy performance.

For the record I have two bikes, a sub-7kg VXRS with all the bells & whistles and a 10 year old Merak which is a kilo heavier. The Merak is no slower up the climbs and descends far more securely than the Time.
 
Aug 13, 2011
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spalco said:
Well, whatever you buy, the price for that product's advertisements are indirectly included. I've read that pro team sponsorship costs a bike company in the ballpark of 2 million dollars, and while that's a lot of money for a cycling team, I don't think it really registers much on the expenses of big companies like Specialized, Giant, Trek, Look, etc. I don't think there's a direct correlation between the increasing budget of cycling teams and the cost of bicycle frames.
I'm late to the discussion and it may have moved beyond the question I'd like to pose.

Is that $2 million RRP or cost price to Specialized?

I just bought a Specialized Tarmac Comp with a full Shimano 105 5700 group set, Mavic Aksium wheels, a couple other small upgrades/add ons, plus Specializeds' promo pack valued at RRP of $499. The whole setup for $2300.

11 months ago the same bike was for sale at $3099 RRP. Currently it's on sale for $2599. I talked the shop down to $2099 with minimal effort (I simply asked "what's the best price you can do?") then I started on the upgrades and add ons.

So that's $1000 off the original RRP.

Currently the Tarmac Comp SL2 frame from the same store is for sale at $1799.

So in pure sponsorship, what' the real cost to a manufacturer.
 
Mar 22, 2011
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veganrob said:
It was a joke.:D And I did not change my option.:rolleyes:

My point was, Crowie has won two IM Kona on the Ordu. And he wins because he is a superior runner. Look up the splits. As for the "unbranded" P4, yes, his choice. IT could be fit issue or something else. I happen to be friends with his coach/fitter.
Another article

http://www.tririg.com/articles.p ... ng_Rides_Vegas_70_3

Quote :
"Most interesting was the fact that men's winner Craig Alexander, who's been with Orbea for several years, showed up with a de-branded Cervelo P4 instead. The Aussie is obviously experimenting with faster equipment after losing Kona last year by a relatively narrow margin, on an arguably slow bike with a slow helmet. This year, he's on one of the fastest bikes around, with a fast helmet, and some very clean cable routing."
 
Jun 11, 2011
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there are plenty of small frame builders that make quality bikes for a reasonable price, if you want a sexy one to go fast up hills and attract the girlies, go here deleted
 

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