Bicycle Shops Need to Learn from Apple

I recently got an e-mail from a sibling asking for advice on what
bicycle to purchase. He gave me a list of four bicycles he was
considering, all under $400.

Like many consumer items, there are price points where there are
significant changes in quality. On bicycles, you see a big jump in
component quality when you move from $400 to $500. At $400, on a
mountain or hybrid bicycle, you're usually getting department store
quality Shimano Tourney components. At $500 you can at least get Deore.

This same sibling also just ordered an iPhone 6. Since it is subsidized,
I think his out-of-pocket cost is about $340, but the real cost, when
you account for the higher monthly rates due to the subsidy, is about
$740, plus tax.

LBSes complain that too many customers have unrealistic expectations
when it comes to bicycle pricing. The problem is that these shops are
all displaying unsubsidized prices. They need to take $400 off every
price and explain that there is a two year contract when you purchase
the bicycle, and that there is a $25 per month charge for service with a
pro-rated early termination fee if you break the contract. In this way
they can sell higher priced bicycles to people that are bad at math.
After two years, the customer can get another subsidy and buy another
bicycle.

Meanwhile, my underprivileged family is surviving with Moto G LTE and
Moto X phones that cost between $200 and $300 unsubsidized, and our
monthly plan cost is about $90 for four lines. But we have better bicycles.

On 16/09/14 23:30, sms wrote:
I recently got an e-mail from a sibling asking for advice on what
bicycle to purchase. He gave me a list of four bicycles he was
considering, all under $400.

Like many consumer items, there are price points where there are
significant changes in quality. On bicycles, you see a big jump in
component quality when you move from $400 to $500. At $400, on a
mountain or hybrid bicycle, you're usually getting department store
quality Shimano Tourney components. At $500 you can at least get Deore.

This same sibling also just ordered an iPhone 6. Since it is subsidized,
I think his out-of-pocket cost is about $340, but the real cost, when
you account for the higher monthly rates due to the subsidy, is about
$740, plus tax.

LBSes complain that too many customers have unrealistic expectations
when it comes to bicycle pricing. The problem is that these shops are
all displaying unsubsidized prices. They need to take $400 off every
price and explain that there is a two year contract when you purchase
the bicycle, and that there is a $25 per month charge for service with a
pro-rated early termination fee if you break the contract. In this way
they can sell higher priced bicycles to people that are bad at math.
After two years, the customer can get another subsidy and buy another
bicycle.

Meanwhile, my underprivileged family is surviving with Moto G LTE and
Moto X phones that cost between $200 and $300 unsubsidized, and our
monthly plan cost is about $90 for four lines. But we have better bicycles.


Good idea.

--
JS

COO COO KADOO...


saying the electro buyer is smarter than a Walmart cycle purchaser ...?

when did you arrive at this analysis ?

subsidy plays when buyers move beyond means into uncharted territory.

subsidy gives support to irrational behavior

meaning, husbandry, cultivation, enlightenment itself

wudnut ya really have a Buick ?

http://goo.gl/WjPohB

On Tuesday, September 16, 2014 10:55:22 PM UTC-4, Phil W Lee wrote:
sms considered Tue, 16 Sep 2014 06:30:07

-0700 the perfect time to write:



I recently got an e-mail from a sibling asking for advice on what

bicycle to purchase. He gave me a list of four bicycles he was

considering, all under $400.



Like many consumer items, there are price points where there are

significant changes in quality. On bicycles, you see a big jump in

component quality when you move from $400 to $500. At $400, on a

mountain or hybrid bicycle, you're usually getting department store

quality Shimano Tourney components. At $500 you can at least get Deore.



This same sibling also just ordered an iPhone 6. Since it is subsidized,

I think his out-of-pocket cost is about $340, but the real cost, when

you account for the higher monthly rates due to the subsidy, is about

$740, plus tax.



LBSes complain that too many customers have unrealistic expectations

when it comes to bicycle pricing. The problem is that these shops are

all displaying unsubsidized prices. They need to take $400 off every

price and explain that there is a two year contract when you purchase

the bicycle, and that there is a $25 per month charge for service with a

pro-rated early termination fee if you break the contract. In this way

they can sell higher priced bicycles to people that are bad at math.

After two years, the customer can get another subsidy and buy another

bicycle.



Meanwhile, my underprivileged family is surviving with Moto G LTE and

Moto X phones that cost between $200 and $300 unsubsidized, and our

monthly plan cost is about $90 for four lines. But we have better bicycles.



You have smartphones?

Reckless extravagance!

I've bought several bicycles since my last phone (a Nokia 6310i, 2nd

hand when I got it). Apparently it was discontinued in 2005, and I

think the mate I got mine from had it from when they were introduced

which was 3 years earlier.

Apparently you can send text messages with it, but I never really got

the hang of stopping the thing that automatically inserts the wrong

word for you, so I don't really use that bit.

There's even GPRS, but I never even set that up.

I don't have a contract, and can't remember the last time I topped it

up - probably some time last year, and by ten quid.



But the battery lasts a week even with quite a few calls, and over two

weeks on standby (408 hours standby or 7 hours talk, according to the

book) and I can even carry a spare battery or two if I'm going

somewhere really obscure where my charger won't plug in or I'm

expecting to use it a lot, Battery swap takes less time than finding

the spare (certainly under 2 seconds).

It can pull in a signal when all else fails, and the car kit (which

cost more than the phone) not only gives me full hands-free but

charges it and connects it to an external aerial on the car, so why

would I want to replace it?

If I ever stop being able to get replacement batteries, it'll be on

borrowed time while my last few die off.

But I've yet to find anything as good at doing what it's primary

function is - to make and receive phone calls when out and about.



I doubt if anyone will want to mug me for it, either.



mass hysteria