What Determines The Bike Cost?

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How and why a bikes cost can get so high is up for debate. There are a lot of factors that can affect the price of a bike, so this guide breaks them down to help you find the best one for you.

To help you pick the right price range for your needs and type of riding, we looked at four very differently priced bikes from $500 to nearly $11,000.

What Goes Into The Cost of a Bicycle?

The first thing we need to consider is what goes into making up the total cost of any given bicycle. This includes all parts and accessories as well as labor costs associated with assembly or repair. In addition to these two main categories, there's also an important third category: depreciation. Depreciation refers to the loss of value over time due to wear and tear on a particular item.  

What Determines The Bike Cost?

In this article, we'll look at each of these factors in turn, but first, let’s take stock of what determines a good value for money on an bike purchase. The best way to do this is to compare two bikes with similar specs and ask yourself which one you'd prefer to ride every day.  However, in here we'll focus on the major parts that affect the pricing of any bike.

Frame Materials

The materials used to make your bicycle’s frame determine its weight, durability, stiffness, ride quality, and overall performance. The most common types of materials include steel, aluminum, titanium, and carbon fiber. Each type has advantages and disadvantages when compared to one another. For example, steel offers excellent strength but poor impact resistance; while carbon fiber provides great energy absorption but weakens over time.

Total 15% - 20% of a bike cost goes into the frame. Frame size determines how much cargo space there is inside the bike. A larger frame means less room but also allows for bigger tires and heavier loads.

Components

There are almost 20 - 25 components included in a complete bike. The following list includes all the major parts on a typical road and accounts for almost 20% - 25% of total bike cost. It does not include smaller items such as bottle cages, phone mount, fenders, racks, lights, etc.

Crafting

The majority of bicycles are still built by hand, and it takes extreme attention to detail to build a bike. Roughly 20% of a bicycle's cost is attributed to craftsmanship. Carbon fiber is molded and shaped before curing, while steel and aluminum are welded by hand. If you're looking at buying a new bike, check out our article on best road bikes for every budget.

Overhead

To make bikes more affordable for consumers, manufacturers have had to cut costs wherever possible. This has led them to reduce materials used in their frames as well as reducing the labor hours needed to assemble each frame. The result is that many modern bicycles are made with lighter-weight components than ever before. 20% of a bike's cost can be attributed to overhead.

Retail Markup

A typical markup is between 8% - 10% of bike cost. For Example,  If you're selling 100 units in one month, this would mean an average profit of 2 dollars per unit. The math gets even more complicated when factoring in taxes etc.

Shipping

The cost of transporting a bike from the factory to the dealer goes up 5%. Average, a bike will change hands 4 to 5 times before it reaches the customer.

Conclusion

There is an enormous range of bike brands and models available in the market for you to pick from. The road bike cost, on the other hand, will be influenced by a variety of factors, including the size and brand of the item, as well as the size and depth of your wallet.

If you're still confused, talk to someone who knows what they're doing or someone at your local bike shop, especially if you want to buy a mountain bike.

But, most importantly, buy one that you will use because it is a terrific way to keep you fit, active, and, of course, pleasurable!

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