man riding an expensive road bike

Why Are Road Bikes Expensive?

Why road bikes are expensive is perhaps a loaded question. It assumes that all road bikes are expensive. Expensive is a very subjective opinion. It also neglects to include varieties of models and ways you can buy a bike.

I would argue that road biking can as expensive or as cheap as you want to make it. You can buy entry-level bikes and parts. You can search through local ads and buy second-hand. You can even check local skips and garbage dumps.

Why Some Bikes Are Expensive

The other way to look at the question is why are some high-end bikes expensive? There is a myriad of reasons for this. Thinking of all bikes as the same a high-end bike is like comparing a Formula 1 car to your family run around. We can all accept that Formula 1 cars are more expensive than daily use cars.

That is because, first and foremost, Formula 1 cars are designed to go around a circuit at very fast speeds and have no other considerations. There is a high cost of manufacturing the Formula 1 cars, and this is true of high-end bikes.

One of the biggest reasons for this cost is research and design. Companies are designing bikes in-house, and engineers cost money. There are also some companies that now own their own wind tunnels like Formula 1 companies. The tunnels can keep their aerodynamic features a secret as long as possible.

Research and Development

The research and developments teams are also looking into exotic materials. These exotic materials will cost more. Some such as titanium are much harder to work with than steel or aluminum. The extra labor here helps to drive up costs.

These materials might not even work outside the design might work on a computer, but when you take it out into the real world, it sucks. It might be too harsh. It might crack too easily. It might flex too much.

Every success we see very likely has had a few iterations that did not quite work out as planned. We will never get to see these, as no one likes to display their failures. The failures, while inconvenient, allow manufacturers to find new ways to balance aerodynamics, comfort, and strength. You’ll notice I missed cost from that section.

That is because every company wants to design the best high-end bike for their riders and teams. We might not even notice these design features. The features that save pros a few watts of energy. Those watts could be the difference between victory and failure.

The UCI states that these bikes must be readily available to buy. These state-of-the-art machines are available in your local bike shop. Generally, these mean machines get put in the window, being placed there to entice people into the shop. It very probably scares more people away by making cycling look expensive.

HALO Bikes

These bikes are also made in small numbers. Lower economies of scale will then inflate the price compared to your standard entry-level bike. The bikes will be made in batches of tens rather than batches of a thousand.

These bikes will also be dripping with the latest groupset, gears, and brakes, from either Shimano, SRAM or Campagnolo. The top end groupsets are not cheap to buy, as they are the pinnacle product from these companies.

Wheels are also not immune to this price tag; on a high-end road bike you will not be getting standard box aluminum wheels. You will be getting the very best wheels from a premium company. Even before pricing a frameset, a bike might have a $4k groupset and $4k wheels.

The Labor Force

The other thing you’ll need to think about is these bikes need to be sold. They will not sell if they do not look good, so you will need a graphic design department. You will also need a marketing department to let the world know about their great bike.

Creating demand for a product needs a team and a customer service department. These people all need to be paid. That is before we even get on to the fact that bike shop staff will need to be paid. There may also be distributors involved.

We mentioned that your favorite pro rider or team might be using the bike. The teams and the athletes will need to be paid. You might even pay an extra premium to have a bike that looks exactly like that of the star rider. They will be getting royalties from these sales.

All of these people add costs. You would then need to factor in rent, electricity, water, and other sundry costs. Are the higher end bikes made in a place where labor is higher? Some are.

Going Custom

The other reason for some of the expensive prices is that high-end bikes can be custom built. You can go and see a frame builder and have them build a frame that fits you.

Everything on this bike will be specked to you. The color of the frame and parts are your choice. The wheels and tires are your choice. How many water bottle mounts you have can be your choice. Adding special features adds to the cost.

The reason here is that you have no economies of scale. Everything is made or purchased in a batch of one. You will not be saving any money by going this route, though. You will, however, have a bike that fits you like a glove.

The cost of high-end road bikes may seem expensive, but when you factor in all the costs in many ways, it is a bargain. You are helping to fund new bikes and new tooling techniques. These will work their way down and help to make affordable bikes at an even better value. Given that riding is free, we can even say that buying an expensive bike will work out cheaper in the long run than other hobbies.

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