One for the Economists: inflation, road bike pricing, etc

"Luigi de Guzman" wrote in message
om...
I love google. It gives me new toys every day. I stumbled across an
inflation calculator today:

http://www.westegg.com/inflation/

According to this, US$ 100.00 in 1979 is worth US$ 265.28 in 2002
dollars.

So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

If this fellow's calculator is correct, then, I've got some
interesting findings:

In 1979...

A *mart special bike costs around $30.00
An entry-level road bike costs around $225.00
A racer or a tourer costs $336.00


Fascinating.

-Luigi
"rerum cognoscere causas" -motto, London School of Economics &
Political Science

When I was a tyke, I saw a Cinelli road bike for $2200CDN..that was in about
1983 or so. That was probably a pretty good bike in its day, but it's also
a pretty good bike today. I don't think the prices have risen that much in
the last 20 years. When I first started working in a shop, also around
1983, the Raleigh Grand Prix was about $275 here in Canada. An equivalent
bike today is probably around $350 or so. So the prices have risen, but
overall, probably lower than inflation. I mean, think of the Giant OCR3. A
GREAT bike for $700. 20 years ago, that would have bought a Miele Bici VII,
probably the same level of bike, but the OCR3 works better. I would think
off-shore labour has kept prices down, along with advances in automation.

My CDN$0.02 worth (only worth CDN $0.012 in 1979...)

Scott...

"Luigi de Guzman" wrote:
So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

In 1984 I bought/built up my current bike. It's built on a "Palo Alto
Bicycles" Columbus SL lugged frame (made in Italy). Here is the cost
breakdown:

Frame/Fork/Headset.....................................$340.0 0
(Plus got a $34 coupon for my next purchase)

Cinelli 64 handlebars.................................... 12.45

Cinelli Model 1A stem................................... 16.50

Campy SR crankset....................................... 89.99

Campy NR BB............................................... 36.95

Campy NR rear der........................................ 43.95

Campy NR front der....................................... 24.10

Campy NR DT shift levers............................... 8.99

Campy der cables.......................................... 3.00

SR LaPrade seat post...................................... 10.50

SR Silstar Pedals............................................ 10.90

Christophe Toe Clips....................................... 2.90

Christophe toe straps...................................... 2.50

Sedisport chain............................................. . 3.95

Shimano Dura-Ace brakeset (incl levers)........... 48.50

Concor Superleggera saddle............................. 22.50

Campy NR hubset 36h...................................... 45.50

Super Champ Arc-en-Ciel s/u rims (pair!)........... 23.20

DT spokes............................................ .......... 15.90

Wolber Invulnerable sew-ups (pair)................... 31.00

Seat post binder bolt....................................... 2.95

Benotto handlebar tape.................................... .99

Sun Tour New Winner Freewheel (6sp)............... 18.90


Total..................$816.12
(Minus $34 coupon) - 34.00

Grand Total.............$782.12

Art Harris

"Luigi de Guzman" wrote in message
om...
I love google. It gives me new toys every day. I stumbled across an
inflation calculator today:

http://www.westegg.com/inflation/

According to this, US$ 100.00 in 1979 is worth US$ 265.28 in 2002
dollars.

So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

If this fellow's calculator is correct, then, I've got some
interesting findings:

In 1979...

A *mart special bike costs around $30.00
An entry-level road bike costs around $225.00
A racer or a tourer costs $336.00


Fascinating.

My first "road" bike with derailluer shifting was a
10-speed Motobecane Grand Tour purchased at
Velo bicycle shop in Berkeley in 1975. I paid
$210 and rode it for 25-30K miles on numerous
centuries, tours, weekend rides, and commuting
trips. The old steel horse still runs and I ride it
occassionally.



-Luigi
"rerum cognoscere causas" -motto, London School of Economics &
Political Science

Luigi de Guzman" wrote in message
om...
In 1979...

A *mart special bike costs around $30.00
An entry-level road bike costs around $225.00
A racer or a tourer costs $336.00
The bikes are so much better engineered today that
a comparison just on cost will be hard to do. I bought
two new bikes last year and it was surprising how much
the bikes had improved in twenty years. The last time
I had seriously looked at bicycles was in 1982. If I had
known how good they had gotten, I wouldn't have
waited so long.

I might even get one or two more as soon as I can build
a storage area for this many bicycles.

wrote:

In article , "Harris"
n2ah@spa m.sprynet.com writes:
"Luigi de Guzman" wrote:
So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

As another point of comparison, in 1970 I paid $225 for my all-Campy
Frejus.
At that time, that was about what a good road bike cost. $250 would have
been
a lot. But, of course, a good road bike now is a lot better than then,
but it does cost 10 times as much.

David L. Johnson
Department of Mathematics
Lehigh University


David,

What was the average pay for teachers at Lehigh in 1970?
What is it today?

The bikes cost less today than then; you just pay more Dollars. It is the
Dollars that are now near worthless.

Read Rothbard for economics 101.

--
Regards, Joe

In February 1974 I got a Lambert (!) 15 speed with sew-ups weighing in
a 21.5 lbs for $115 less tax. By the end of the first month of riding
it needed a new freewheel, new derailleurs, and the (non-tapered)
crank spindles developed play and were soon unuseable.
Derek






On 9 Aug 2003 06:12:37 -0700, (Luigi de Guzman)
wrote:

I love google. It gives me new toys every day. I stumbled across an
inflation calculator today:

http://www.westegg.com/inflation/

According to this, US$ 100.00 in 1979 is worth US$ 265.28 in 2002
dollars.

So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

If this fellow's calculator is correct, then, I've got some
interesting findings:

In 1979...

A *mart special bike costs around $30.00
An entry-level road bike costs around $225.00
A racer or a tourer costs $336.00


Fascinating.

-Luigi
"rerum cognoscere causas" -motto, London School of Economics &
Political Science

Luigi de Guzman wrote:

According to this, US$ 100.00 in 1979 is worth US$ 265.28 in 2002
dollars.

So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

Prices have risen much less than inflation, depending on how you
value technological improvements. Keep in mind that the entry-level
$300 bike is now a MTB or hybrid rather than a road bike, and you
get more for the money now. The good old days weren't that good.

I have a Consumer Guide bicycle book from 1980. A Raleigh Super Grand
Prix 10-speed was $269. It had a high-ten frame and fork, barend
shifters, Suntour VGT and Compe derailleurs, aluminum cotterless
cranks 52/42, a Suntour 14-34 5speed freewheel, Weinmann center pull
brakes, QR hubs and aluminum rims. If you stepped down to the Grand
Prix at $239 you got steel rims and stem shifters. The Record Ace at
$197 had steel rims, a QR only in front, and a heavy steel seatpost.

This is about what I remember from my first real "10-speed", a
Raleigh bought a year or two later.

A Reynolds 531-framed Raleigh Professional with Nuovo Record and
sewups listed at $925, a Competition was $499. Price points for
other manufacturers listed were similar, although the Motobecane
Grand Touring looks like a good deal relative to the Raleighs -
for only $295 you actually got double butted Vitus 172 tubes
rather than gaspipe.

wrote in message ...
In article , "Harris" n2ah@spa
m.sprynet.com writes:
"Luigi de Guzman" wrote:
So I'm curious--what did you oldtimers pay for 'good' road bikes back
in the day? Have prices risen or fallen in real terms over the past
twenty, thirty years? Or have they stayed even?

As another point of comparison, in 1970 I paid $225 for my all-Campy Frejus.
At that time, that was about what a good road bike cost. $250 would have been
a lot. But, of course, a good road bike now is a lot better than then, but it
does cost 10 times as much.

This is exactly what I'm trying to get at. Of *course* it costs more
in nominal terms--thirty years of inflation will do that. But does it
cost more in *real* terms?

A quick look at the inflation calculator says no. A bike equivalent
to your Campagnolo-equipped Frejus might $1,062 today.

This would be a great way to teach kids about inflation and the
consumer price indices...but of course, kids are too young for
inflation to have any serious effect. I'm too young, for instance,
(22) for any of these things to affect me all that much.

It certainly does put things into perspective.

-Luigi



David L. Johnson
Department of Mathematics
Lehigh University

It certainly does put things into perspective.

htttp://www.jimlangley.net/spin/bikeman.html#p

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_______________________ALL AMIGA IN MY MIND_______________________
------------------"Buddy Holly, the Texas Elvis"------------------
in.edu__________

It certainly does put things into perspective.

http://www.jimlangley.net/spin/bikeman.html#p

--

_______________________ALL AMIGA IN MY MIND_______________________
------------------"Buddy Holly, the Texas Elvis"------------------
in.edu__________