Viathon Bikes launched to
surprise, confusion and intrigue back in April, offering high-end carbon XC hardtails despite links to Walmart.
Walmart are best known for their $300-$500 bikes that had a reputation as bikes that “real” cyclists scoff at when seen in the wild. These bikes were different though. They looked the part, were made from carbon and had specs that would make even the vainest dentist's head turn. The news was interesting for more than the bikes though; Walmart could potentially be a huge player moving into the high-end bike market and cause some serious disruption.
We expected Walmart to use their purchasing power and distribution model to produce some bikes that were unmatched in terms of value. Initially though, the high-end brand was only available on
viathonbicycles.com and the value of the bikes wasn't as exceptional as expected. When comparing spec to spec, it worked out to be roughly equal to already existing direct order brands such as Canyon.
That has all changed now though as Walmart have started stocking Viathon bikes and with 11,300 retail units under 58 banners in 27 countries, it's not much of a surprise that they have been able to drive down the prices somewhat too.
The Viathon M.1 is available in the same three spec levels or as a frame only option as before but now they are even more affordable. The top of the range XX1 spec drops more than a grand down to $4,898, the X01 drops $500 to $2,998 and the entry-level GX model now sits at just under $2,000 from $2,400. The frame only is now half price at $1,000.
At this price point, they are now cheaper than equivalent options from even direct sale brands. If you want a carbon, XC, race hardtail and price is your main concern, Viathon could now be the brand to beat.
This is just a first step for Viathon and we'll watch keenly how they develop as a brand going forwards. Can they throw off the 'Walmart bike' reputation and will they begin to expand their offering to more trail and gravity oriented models? One thing is for sure, Walmart has the potential to grow mountain biking to new audiences and get more people out on a decent pair of wheels and these price drops will make that even more likely.
For more information on the Viathon range, check out our
first look here.
Find the bikes on
walmart.com here.
More like $69-250
Things with engines are cheaper than stiff light pedal bikes. There are plenty of heavy flexible pedal bikes available at a fraction of the cost of a mx.
This argument is so old and tired and reeks of ignorance. Compare a factory motorcycle to a V10 and get real. A more apt comparison of a $6k Suzuki 250 would be to an entry-level YT Tues, which you can get for $2900.
1) Bikes are not expensive because "people buy them". If you dig, you can find margins through every step of the sales process, they aren't high. To add, if what you say was true all the bike companies would be flush with millionaire employees. Clearly not the case. Bikes are expensive for a lot of reasons. One big reason they are so expensive is how quickly technology changes & evolves. Its breakneck pace, and we're willing to pay big for relatively incremental changes. This isn't so true in the moto world where companies get years out of a model (it barely changes for 4-7 years). Economies of scale is 100% at work.
2) The whole "V10 is the same as a top tier moto" argument is tired. No its not. The sports are different. A top tier moto has so many more moving parts. They aren't really comparable the same way a golf club and a baseball bat aren't really comparable.
End of the day you are getting a lot more value out of a moto than a mountain bike, at least you used to. Things are starting to even out now that you can buy a ripping mountain bike for $3K.
Mountain bikes will get cheaper if the industry continues to evolve the way moto has evolved. Changes will be less and less beneficial, bikes will be more relevant for longer periods of time. Geometry will be more figured out, and more constant. Suspension designs already have leveled out.
The key is to let economies of scale work. They currently don't, which is why a company has to charge what they do to recoup their costs.
If they had a longer time horizon to do so, they could accept lower margins, and prices would fall...
/blog post.
I ride a dirt bike and talked to people riding amateur races. They buy the same bike as Î have (YZ250f for approx $9000) and upgrade the suspension ($6000) and tune the engine. This will cost at least $18000. I think that would compare pretty well to a $5000 YT or $6500 Santa Cruz bike. So the dirt bike is 3x more expensive. And the maintenance costs way more. IMO those comparisons are useless.
So yeah, the whole "you are comparing it to a $100K moto" analogy should kinda be taken with a grain of salt.
1: Top spec MTB's are virtually the same as the bike being ridden at the highest levels of competition (tuning and expert mechanics aside). Top spec dirt bikes are great machines, but are thousands of dollars away from the bikes being ridden in top level competition: suspension, engine work.
2: Cost of the whole product line and economies of scale: between MX and Enduro, KTM offers 12 4-stroke models, and 9 2-stroke models (omitting anything under 125cc). The price range for the whole line ranges from $8800 to $14,100. This means that every new(or new ish) dirt bike cost an average of $10K to show up at the trail head. Also to be noted that dirt bikes come in 1 size, and most share a significant number of components.
Trek by contrast, Trek offers 61 different full suspension builds, based on 31 different MTB frame sets, and each frame set can be had in different sizes. Taking e-bikes out of the mix (the new Rail) their price ranges go from $2,800 to $14,500. Considering they have hardtails, kids bikes, road bikes, fat bikes, and everything in between on top, you can see this adds up.
Basic economics, the more of 1 thing you can make the cheaper it gets. KTM sells a lot more than 1 thing, but they have far less variation in product line that does Trek. And when you consider that Trek (or Giant, or Specialized) sell a lot more bikes at or below the $2500 price point vs the $10,000, so at the end of the day, they really don't have that many high dollar bikes to try to spread out those sunk costs or find efficiencies. You see this at most trail heads, yes some people show up of the newest $10K toy, but most don't.
This is only magnified with smaller brands; Transition, who is arguably on the large side of the boutique side, had an annual revenue of ~$10.7M; call their average bike $5K, that's only about 2,100 bikes being sold, over a 7 model line totaling 17 different frames. So potentially they are trying to pay for all their tooling in as little as 123 frames.
3: Competition: it's good, but it can also be bad. You look on the dirt bike side, and you have KTM/Husky, Yamaha, Kawi, Suzuki, Beta, and a small handful of others; but on the MTB side there seems to be a new, high end, manufacturer, is popping up every few months. But people get into business to make money (as lofty as you goals and ideals may be, the mortgage and grocery bills need to be paid), and there are 2 ways to make money: margin and volume. The big guys (Trek, Giant, Spec, etc) have volume covered, so the only way to survive is margin. And you margin needs to cover not just the direct costs that go into the bike, but all the corporate overheads (who does your payroll? do you like to have toilets at work? what about power to run the welder?). You don't gain market share overnight, and you can't stay in business working at a loss.
There is nothing WRONG with a Yari equipped alloy bike with slightly heavier wheels and NX drivetrain. A good rider will out pace a mediocre one regardless of the bike. However, the ULTRA high end of MTB is well within the reach of the masses and there are significant diminishing returns on performance/cost as the envelope of performance is pushed to the ragged edge.
Powersports dealers take losses on MX bike sales, yep they lose money on them, so does Honda/Yamaha/etc....
They sell these moto bikes at a loss in an effort to move lawnmowers, pressure washers, dumby carts, etc.
Dealerships don't make much on the sale of the bike (or sled, personal watercraft, UTV/SXS etc), but there are manufacture kickbacks in place based on how many they move. The model is strange, and largely based on service, parts and wear parts, but it is not one big marketing vehicle for lawnmowers and pressure washers...lol.
have you seen their revenue reports?
Your example of a current $3k mountain bike would be something equivalent to a $2k mountain bike from 1999. Back then, that got you a full suspension bike with about 4 inches of travel, early (Hayes) hydraulic discs, and a fork that had no business having 4 inches of travel (think Rockshox Judy LT for those that have been around long enough) The point I'm making is that the bikes we get at $3k now are light years ahead of what you were able to get back then factoring in inflation.
Having worked in the bike industry from 1996-2010, I can tell you that even in that short time frame, the cost to manufacturers have steadily increased, outpacing in some markets, the rate of inflation.
What, at least to me, has no logical explanation is the cost of the flagship bikes rising at an exponential rate. It would be interesting to have data on the take rate of $8000+ bicycles as well as the demographics (i.e. what kind of dentist).
i also look at things like brake pads and tires. when 1 car tire is the same as 1 moto tire and the same as 1 mtb tire.
or for motor vehicles. i buy a starter for my 350 power stroke and its cheaper than buying a starter motor more than half the size smaller starter for my wifes husqvarna dirt bike, again production numbers.
brake pads for my truck are cheaper than brake pads for my mtb. go figure. again production costs.
yes so many different quality materials and such will also get thrown into the arguement. but mostly the pricing is for R&D more than the materials themselves. its great that mtb's continue to get better in so many ways, but yes the cost can be a damper. it also sucks the amount of bike frames that continue to break. I love Trek bikes. but will never buy one again cause unfortuanly ive broke 3 swingarms on 2 different bikes. session 88 and remedy.
its hard when buying a used mtb because there is no warranty. as with the used moto market and new moto market it is a very rare occurance that they break frames... unless you a husqvarna owner then youve probably had to replaced that stupid carbon subframe more than once before.
all this being said. i like the qulity of bikes now are so much better than 2009 when you could only buy the top end components for the bike to be half decent. now you can get a decent frame and low end build kit and it will be better than most products produced 5-10 years ago.
@samslichter:
Also let’s not forget to mention HOW MUCH MORE ABUSE a moto takes than these flimsy pedal cycles.
But comparing the materials (think solid gold made in their own foundaries or platinun), craftmanship ( hand made by Swiss watch makers) and overall quality: wrong.
Very different than bikes. A full spec racing hard tail ( whit dropper) for 5k? That is 2k less than the competition. And i think it looks great.
Oh and fyi: #casiosandseikos
Im a bit of a watch guy. And I love Casios!!!
Cheers
Look at the prices of their steel watches.
Ironically most cheap quartz watches tell time MUCH better than fancy watches.
And I was even fashionably late to the party.
No one that shops at Walmart is going to drop a few grand on a bike there.
Not sure how this plays out...
And don't start with the whole lbs supporting my community thing - my lbs employs maybe 6 people (at min wage, no benefits). Pretty sure the Walmart is employing more then that.....
Their bottom line was: This bike would be great for racing, but not a lot of "fun" to just ride on a daily basis.
Here's a link:
www.singletracks.com/blog/mtb-gear/first-ride-review-deciphering-the-viathon-m1-hardtail-mtb
Basically, they are saying that that the relatively steep head tube on this hardtail bike is basically best suited for someone who is using it for cross country racing and that due to head angle it wouldn't be a great more versatile trail riding bike. So I would agree that for daily riding for most riders this bike wouldn't be "fun." Other hardtail bikes have gone to slacker head angles.
Carbon frame, low weight and much better price point concerning parts than other bikes mentioned in the article.
This seems like a great bike for a NICA racer who doesn't want to break the bank for a similar bike for those races. I would consider it for exactly NICA races for my kid at the $2000 price point. But then again, just for NICA race/training as he has a good trail bike and a downhill bike.
I’ve wondered if they might be positioning themselves as a purpose built NICA brand. Like a well-subsidized team could order a bunch of them for their riders in bulk.
If you think anyone out there is swimming pools of bicycle money you've been smoking too much. Our margins are narrow, wages are low, and talent is overtaxed. This industry is driven by passion for bikes - we're just trying to get paid enough to keep a roof over our bikes.
Viathon, on the other hand, doesn't need to make a profit off their bikes. Hell, they might not even care if they lose money. They just need to sell enough of them for everyone else to feel the pain and start dropping off one by one. This is literally how Amazon works - they bring prices down so low that no one else can continue to compete because they need to feed their families. Then, when all the competition is gone they jack the prices up to wherever they want it to be and everyone suffers as a result.
The people who have the ability to put a kaibosh on new standards development, product managers and sales departments, have no incentive to do so. Why? Because people keep buying the new standards!
You speak as if you represent all mountain bikers... but you aren't the voice of all mountain bikers. Someone could release a 160mm MTB standard rear hub tomorrow and guess what: it'll sell. The reality is that the vast majority of the bike-buying public are rich white dudes with money to burn. They're easily influenced by advertising and want to have the nicest/newest thing on the market.
Y'all like to think there is some kind of global cabal of cycling industry big wigs voting for or vetoing trends then you're wildly mistaken. All we're trying to do is keep our ears to the ground and see what looks to be trending next.
"the concern is that the bike industry is nothing but development and process - all icing no cake. If we stopped inventing new shit the whole circus might just collapse in on itself overnight."
I don't personally think there's any crazy conspiracy, from the outside looking in, seems like a healthy industry developing at breakneck pace. It seemed like you point was that it's all smoke and mirrors, instead of customer driven innovation. But I might have misinterpreted it.
I think some people are fine with this but personally I find this uncomfortable.
Also TIL: Tom graduated from my local Northern Arizona University. I wonder if he's given our local organization any donations...
I was down in Eureka Springs riding passion play and then doing shuttles over labor day weekend and I met more people that came from CO to check out the trails than people from Arkansas or Missouri where I am from.
i avoid going there at all costs. Haven't been in one in two years when i was desperate at a race out of town.
I’ve been in the Motorsports industry for over 40 years I’ve never seen a size medium YZ250 or a size XL for someone like me, so mass production of 1 single model changes the price dynamic massively
It’s bad when I want to get friends into riding, but none of them can envision paying the outrageous costs. And if Kawasaki can make a full on ZX-6R with a $9,999 MSRP, then any mountain bike that’s even remotely close to that is absurdly overinflated. Because there is a 0% chance the R&D costs are even remotely close, and same with all the materials.
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation (typically measured by amount of output produced), with cost per unit of output decreasing with increasing scale.
Can anyone who knows better than me how good these deals are for just the components? If I had a $400 frame, could I build up a bike close to this cheap with comparable components?
Walmart has more buying power than anyone else in this sorta industry. They can deffs get stuff at a lower cost to themselves and can afford to sell at a huge loss and has done so before on other products.
Spesh will argue that their Fuse range meets this demand. I still think it's over-priced for the entry-level rider, as the base model doesn't include a dropper post or hydraulic disc brakes (I think) - including those, alone, would be HUGE, and may solve the problem.
Viathon is in a unique spot because they can get these bikes in front of the masses, which may naturally drive demand a bit more, but again, it's a major risk because you'd be gambling on the entry level segment to explode, and I don't think any of the big brands want to put their brands in a tough spot if that doesn't happen. They'd rather focus on the sure thing like E-bikes in Europe, high end bikes for us crazy enthusiasts, etc.
I'm kinda bummed, because it was almost in "major splurge" territory, and now it's a bit out of that.
people might drop $1k on a TV or computer at WalMart but, nobody is going to shop for a high priced hardtail at WalMart
Imagine those type of scenarios.
Wow, billionaires travel via private jet, stay in luxury hotels, and have lavish parties? Least surprising news ever.