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Tradesman pinkbikeaudience's article
Jun 28, 2017 at 5:34
Jun 28, 2017
We Went To Taiwan and Started a Bike Company...
Great video! One thing not covered in this video, that is a huge factor, is the cost of compliance testing. It's not just the monetary cost of testing, but also the time it adds to the entire process. Trek, Specialized and other reputable brands literally destroy frames in every size before they ever go into production. They also test the paint, rubber and virtually every other touch-point for lead and other cancer causing substances. Those $300 carbon frames on Amazon - do you think they've been subjected to a battery of destructive testing? Have they tested their paint or clear-coat for lead? Maybe 1 frame in 1 size...maybe. The assertion that all the marketing "BS" is driving-up the price of bikes is a gigantic myth. The net profit margins on complete bikes or even frames is not what you think it is. Most bicycle companies spend less than 5% on marketing. It may seem counter-intuitive, but the lack of marketing investment by bicycle companies (component manufacturers included) is part of the reason why the bicycle industry isn't growing, and hasn't for more than 15 years. That lack of growth means less units are being produced...and that does nothing to drive volume, which leads to lower manufacturing costs. Let's also not forget that without the marketing "BS" you'd have almost nothing to write about...or complain about. You'd have a boring bike, painted black and your rad suspension system would simply be called "3 pivot suspension."
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