Originally Posted by
mjbab@#$%@#$%@#$%@#$%
I for one think that pricing one's product in a way that undervalues skill while simultaneously undercutting other craftsmen does noo one any good save the consumer. A good example of this would be DeSalvo's $850 frames. He's not making much of a profit, he's drawing business away from someone earning sustainable profit margins, and he's setting the bar at an unrealistic level. Don't take my word for it, go to nova cycle supply, price out a nice tubeset, then consider insurance costs as discussed earlier. Add the cost of a mill, tig welder fixtures, businesses licenses, filer material, health insurance, dental, retiremebt, mortgage, rent, paint, web space, etc. Then consider the fact that most here would rate the product as being on par with other $3k fransesets. The guy is welding up speedvagens for god's sake! How can a consumer who expects and respects a personal relationship with their builder be cool with a $850 frame cost?
My guess is that a really good welder could make $30/hour. Take a builder who can crank out four premium bikes a week (most do 1-2/week) and you're at ten hours. That's $300"ish" for labor and $500"ish" for all the expenses. Paint, tubes, insurance...all of those expenses listed earlier are more than $500. Paint oftentimes runs $500+. Do the math and look at the suppliers websites to get a feel for expenses. This doesn't ever begin to cover the hours spent emailing and talking on the phone, planning geometries, fit, braze-ons, color choices, billing, etc. Now consider that same price for a builder making two bikes a week. That's twenty hours for $300 and $600 for 40 hours of work, about $2400/month for extremely good welding...before Income tax, social security, state income tax, etc.
Guys cranking out "bargin" framesets simply aren't sustainable, and they hurt those who strive for sustainability. If people want to see the craft live on, then the need to recognize the labor and experience put into handcrafted framesets as deserving money comporable to the carbon bikes that are out there. Add to that, the fact that many of the most experienced among us (grantm, dbrk, darren, brunk, etc.) choose handmade steel frames over other material and production options; justifying inexpensive custom bikes becomes that much harder. The point is...experienced, well known, and respected builders should not be selling bikes for under $1500.
Buyers looking to pay builders less than that (maybe $2k is a better floor) are only putting nails in a coffin.
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