| Subject: | Shimano Dura-Ace 10spd Pricing Revealed! |
| Date: | 09/26/2003 03:08 AM |
| From: | Michael Blahut |
|
techie brain food... It's no secret that the US dollar has been getting hammered against other currencies for the last 12 months. Based on who you listen to, it's lost 20% of its value against the Euro and 11% of its value against the Yen in the last 16 months. Like many industries, the bike business was put in a terribly difficult spot. Wholesale and retail prices for the 2003 season were established right as the tailspin began. As the year wore on, the steepest wholesale price increases we saw were 4% -- if anyone had tried raising prices any higher, their sales would've stopped dead. As we roll into the 2004 product year, you can count on prices getting adjusted with a vengeance. Starting a month or two ago, we were assured that the revamped Campy Record and Chorus would go up in price by roughly 20%. Dura-Ace 10-speed, we were told, would go up in price by at least 25% in comparison to the current 9-speed. Dura-Ace 10-speed is an especially interesting topic for us. Its introduction will coincide with the total face-lift Shimano is giving to its mail-order policy. For good reasons, Shimano is trying to (ahem) fix the retail prices at which its components are sold. Why? They claim they're tired of hearing complaints from bike shops that gigantic mail order outfits are selling componentry for rock-bottom prices. As such, Shimano has limited the mail order sales of its goods to five retailers. They're the usual suspects -- Performance, Nashbar, Colorado Cyclist, Excel, and somebody else I can't remember. Why them? They're widely known, they publish nice catalogs, and they have quality mailing lists. These outfits are smart enough to know a good situation when they see it: The authorities at Shimano are willing to give them a monopoly on mail order sales provided they're willing to abide by MSRP -- ensuring full profit margins for them while eliminating all of their competition. Not a bad deal. We don't sell individual components (at least not yet), so Shimano's new policy doesn't directly affect us. We do have a keen aversion to injustice, however, and we've certainly pondered whether the restriction of free trade in this fashion is legal. Furthermore, we're concered that the next logical step for Shimano will be to ban the mail order sale of Shimano-equipped bikes altogether. That would be a troubling situation indeed. But we digress. Let's get to the point -- the MSRP for individual Dura-Ace 10-speed componentry. We don't doubt that you might have a stroke when you review the pricing. If you must keel over in such a fashion, as a parting thought remember that no one will offer better pricing on Dura Ace 10-speed equipped bikes than Competitive Cyclist. And if you must call us asking about the individual purchase of 10-speed components, please make sure first that your phones aren't tapped! Shimano Dura Ace 10-speed pricing Brakeset (F&R) $224.99 10spd chain w/2 pins $30.49 10spd cassette, 11-21, 11-23 $143.99 10spd cassette, 12-21, 12-23, 12-25, 12-27 $161.99 10spd crank w/o BB10spd $365.99 10spd BB Unit $35.49 10spd Front Derailleur, 28.6 or 31.8 $81.99 10spd Front Derailleur, Bz-on $75.49 10spd Front Derailleur, Brz w/34.9 clamp $82.99 10spd Rear Hub $163.99 10spd Front Hub $101.99 10spd Rear Derailleur $114.99 10spd STI Levers $384.99 I'll do the math for you -- it's $1400 for a group without headset and hubs. Look in the most recent Excel and you'll see that the identical package in Dura Ace 9-speed costs $769. Ouch. =time for campy |
