2009 Pricing

Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

In article
,
Qui si parla Campagnolo wrote:

Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

On Nov 27, 8:07*am, Tim McNamara wrote:
In article
,
*Qui si parla Campagnolo wrote:

Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

MO places were US based.

On Nov 27, 8:44*am, Qui si parla Campagnolo
wrote:
On Nov 27, 8:07*am, Tim McNamara wrote:

In article
,
*Qui si parla Campagnolo wrote:

Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

MO places were US based.

I think Tim meant "manufacture." To which I say, SRAM is HQed in
Chicago.

Qui si parla Campagnolo wrote:
Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Tim McNamara wrote:
Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

Duty on bicycle parts ranges zero to 15% most items 5%. Freight on an
ensemble about 3%, maybe less. Not enough spread for our expensive USA
overhead (very high corp taxes, environmental regulation, labor etc).

Note this is not a polemic. Simply, the numbers do not support USA built
full-ensemble pro bicycle equipment.
--
Andrew Muzi
www.yellowjersey.org/
Open every day since 1 April, 1971
** Posted from http://www.teranews.com **

"A Muzi" wrote in message
...
Qui si parla Campagnolo wrote:
Previous post lamented the high price of SR. MailOrder places has
7900
now and what made it so expensive? Particularly when compared to
7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset.
Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Tim McNamara wrote:
Dunno what happened but at those prices it should be feasible to make
a complete group here in the US and sell it for less.

Duty on bicycle parts ranges zero to 15% most items 5%. Freight on an
ensemble about 3%, maybe less. Not enough spread for our expensive USA
overhead (very high corp taxes, environmental regulation, labor etc).

Note this is not a polemic. Simply, the numbers do not support USA
built full-ensemble pro bicycle equipment.
--
Andrew Muzi

Wouldn't matter anyway. We avoid manufacturing, or anything else
involving significant capital expenditure in equipment, like the plague.
The financial rewards in our economy come from the financing end of
things, not manufacturing. Much less risk to go overseas for quotes and
have someone else deal with plant expenses. We (the US) want everything
clean & tidy & profitable in the short term. We don't even consider
investing in people to be worthwhile anymore, unless they're the small
handful in the executive boardroom who determine their pay among
themselves with little, if any, oversight.

So no, you won't see a US-made component group. Nor many other things
that *could* be made here, but won't. We would rather invest elsewhere.

--Mike-- Chain Reaction Bicycles
www.ChainReactionBicycles.com

On Nov 27, 11:40*am, Hank wrote:
On Nov 27, 8:44*am, Qui si parla Campagnolo
wrote:



On Nov 27, 8:07*am, Tim McNamara wrote:

In article
,
*Qui si parla Campagnolo wrote:

Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

MO places were US based.

I think Tim meant "manufacture." To which I say, SRAM is HQed in
Chicago.

Nothing Sram 'makes' is made in the USA.

Qui si parla Campagnolo wrote:
Previous post lamented the high price of SR. MailOrder places has
7900
now and what made it so expensive? Particularly when compared to
7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset.
Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Tim McNamara wrote:
Dunno what happened but at those prices it should be feasible to make
a complete group here in the US and sell it for less.

"A Muzi" wrote
Duty on bicycle parts ranges zero to 15% most items 5%. Freight on an
ensemble about 3%, maybe less. Not enough spread for our expensive USA
overhead (very high corp taxes, environmental regulation, labor etc).
Note this is not a polemic. Simply, the numbers do not support USA
built full-ensemble pro bicycle equipment.

Mike Jacoubowsky wrote:
Wouldn't matter anyway. We avoid manufacturing, or anything else
involving significant capital expenditure in equipment, like the plague.
The financial rewards in our economy come from the financing end of
things, not manufacturing. Much less risk to go overseas for quotes and
have someone else deal with plant expenses. We (the US) want everything
clean & tidy & profitable in the short term. We don't even consider
investing in people to be worthwhile anymore, unless they're the small
handful in the executive boardroom who determine their pay among
themselves with little, if any, oversight.
So no, you won't see a US-made component group. Nor many other things
that *could* be made here, but won't. We would rather invest elsewhere.

Yes, exactly. Among the myriad disincentives to manufacturing here are
the cruel pointless and dysfunctional capital depreciation rules.

Every factor is stacked against a US manufacturer.
--
Andrew Muzi
www.yellowjersey.org/
Open every day since 1 April, 1971
** Posted from http://www.teranews.com **

"A Muzi" wrote in message
...
Qui si parla Campagnolo wrote:
Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Tim McNamara wrote:
Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

Duty on bicycle parts ranges zero to 15% most items 5%. Freight on an
ensemble about 3%, maybe less. Not enough spread for our expensive USA
overhead (very high corp taxes, environmental regulation, labor etc).

Note this is not a polemic. Simply, the numbers do not support USA built
full-ensemble pro bicycle equipment.
--
Andrew Muzi
www.yellowjersey.org/
Open every day since 1 April, 1971
** Posted from http://www.teranews.com **

We do, I'll venture, have rather different political views. But you
identified "overhead" and attributed specific associated costs to it. Just
looking at all-Italian Campy, in each category you set out, the relative
costs are higher in Italy, not just due to exchange rates. And the social
charges for labor dwarf American costs. Do you really believe what you
said, or did you leave out other more burdensome costs of American factory
production?

--
Bonne route !

Sandy
Verneuil-sur-Seine FR

"A Muzi" wrote in message
...
Qui si parla Campagnolo wrote:
Previous post lamented the high price of SR. MailOrder places has 7900
now and what made it so expensive? Particularly when compared to 7800?
$700 STI levers, $700 aluminum crank, $70 chain and $300 cogset. Very
similar to Record, BTW, w/o the carbon. ALL 2009 'stuff' is too
expensive but HUGE gap between 6600 and 7900...and DAe-almost
$5000.....

Tim McNamara wrote:
Dunno what happened but at those prices it should be feasible to make a
complete group here in the US and sell it for less.

"A Muzi" wrote
Duty on bicycle parts ranges zero to 15% most items 5%. Freight on an
ensemble about 3%, maybe less. Not enough spread for our expensive USA
overhead (very high corp taxes, environmental regulation, labor etc).
Note this is not a polemic. Simply, the numbers do not support USA built
full-ensemble pro bicycle equipment.

Mike Jacoubowsky wrote:
Wouldn't matter anyway. We avoid manufacturing, or anything else
involving significant capital expenditure in equipment, like the plague.
The financial rewards in our economy come from the financing end of
things, not manufacturing. Much less risk to go overseas for quotes and
have someone else deal with plant expenses. We (the US) want everything
clean & tidy & profitable in the short term. We don't even consider
investing in people to be worthwhile anymore, unless they're the small
handful in the executive boardroom who determine their pay among
themselves with little, if any, oversight.
So no, you won't see a US-made component group. Nor many other things
that *could* be made here, but won't. We would rather invest elsewhere.

Yes, exactly. Among the myriad disincentives to manufacturing here are the
cruel pointless and dysfunctional capital depreciation rules.

Every factor is stacked against a US manufacturer.
--
Andrew Muzi
www.yellowjersey.org/
Open every day since 1 April, 1971
** Posted from http://www.teranews.com **

Well, you added to the mix, here, but I think you would be hard pressed to
find Campagnolo's Italy more lenient on this tax issue. My vote is for
Mike's point: that high ROI with minimal capital outlay is the goal of most
business ventures today. In a couple of retail oriented clients, I happen
to know that retail prices are six times the delivered costs of the objects
sold. Margins of that magnitude discourage selling parallel domestic made
product at the same retail price, where the margin is one third against
imported ones from developing economies. Retail prices may be competitive,
but margin is tighter.

This same drive - to maximize ROI and minimize actual investment - is what
has driven manufacturing concerns out of the US or out of business, I
believe.
--
Bonne route !

Sandy
Verneuil-sur-Seine FR