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Iron Horse does it again

stiksandstones

Turbo Monkey
May 21, 2002
5,078
25
Orange, Ca
Stik, that kid might be mine if only Leigh would have paid closer attention to me at Helen, GA.....:brows:
She was too busy watching Brian puke from alcohol for the first time in helen.

BTW, where does one buy a high end Iron Horse? I have been to shops here in so cal within a 100 mile radius of my house and never seen a sunday for sale, just the consumer line at sports stores? Not a jab at IH, just wondering where you all get these things.
 

bizutch

Delicate CUSTOM flower
Dec 11, 2001
15,928
24
Over your shoulder whispering
She was too busy watching Brian puke from alcohol for the first time in helen.

BTW, where does one buy a high end Iron Horse? I have been to shops here in so cal within a 100 mile radius of my house and never seen a sunday for sale, just the consumer line at sports stores? Not a jab at IH, just wondering where you all get these things.
for whatever reason, they manage to under supply each year. I have a feeling they are treating them as gold and controling supply lines to maximize pricing. I had gotten very lucky (can't believe you have to be considered "lucky" to get a complete DH bike in April!!) and my dealer laid hands on the very first one off the truck of the Elite when he found out all the World Cups were going to be claimed before a single one even shipped out. While everyone else was lining up dollars for the World Cup and being told no mas, we went to the front of the line on the Elite.

I gutted it, put my juiciest bits on it and made my own World Cup...which is for sale currently by the way for $3600.00 US complete w/ I9 wheels and 2008 DH40. bizutch@hotmail.com

great segway...don't ya think....:happydance:
 

Winston

Chimp
Feb 17, 2006
39
0
Irvine, CA
The Path in Tustin, CA.

BTW, where does one buy a high end Iron Horse? I have been to shops here in so cal within a 100 mile radius of my house and never seen a sunday for sale, just the consumer line at sports stores? Not a jab at IH, just wondering where you all get these things.
 

danielbender

Monkey
Sep 21, 2004
152
0
Brazil
Mongosse sells a complete bike EC-D for $3299. I'm sure they are making money!

IH 2008 price are BS......

...how much does it cost a frame in TW to produce? my guess... no under $250,00
... the profit is excellent... why increase more?

I guess they are selling more IH in Europe than in the US.... that's one of the reasons....
.... Sam Hill asked for a rase..... that's probably the second reason...
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
She was too busy watching Brian puke from alcohol for the first time in helen.

BTW, where does one buy a high end Iron Horse? I have been to shops here in so cal within a 100 mile radius of my house and never seen a sunday for sale, just the consumer line at sports stores? Not a jab at IH, just wondering where you all get these things.
I think that less of them exist than people actually think. Just because everyone wants a Sunday doesn't mean they have one.

Dave
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
Mongosse sells a complete bike EC-D for $3299. I'm sure they are making money!

IH 2008 price are BS......

...how much does it cost a frame in TW to produce? my guess... no under $250,00
... the profit is excellent... why increase more?

I guess they are selling more IH in Europe than in the US.... that's one of the reasons....
.... Sam Hill asked for a rase..... that's probably the second reason...
It costs more to produce a Sunday in the US than Taiwan... WAY MORE than $250.

Sam Hill's contract has not changed.
 

X777

Chimp
Aug 17, 2007
49
0
Considering Specialized just raised the price of the Demo 8 complete from $5k even to $6300.00 without changing anything....
who with right mind would buy demo 8 anyway?! this price tag is well suited for all psychos out there :brows:
 

3D.

Monkey
Feb 23, 2006
899
0
Chinafornia USA
And I remember everyone being blown away 5 years ago when we started paying 2/3 the price of a new moto, for something that was missing the motor.

Funny how MTbike production growth and pricing works opposite of the moto industry... basically the same materials, right?

I understand that very few bikes are mass produced, but if this really is a material and dollar bill issue... why haven't we seen moto pricing go through the roof as well?

Motos have gone up, but not at the rate of our motorless obsessions.

oem shock = $300 tops
raw materials = $400
bearings = $30
labor = $400
paint = $100
shop = $200
frame build total = $1430 (+ or -)

PROFIT = $1000- $1500 for a $2500-$3000 frame :huh:
 

seth505

Monkey
Jun 9, 2006
519
0
CA
I think the problem with this thread might be that everyone on the interweb feels they are a great candidate for a production manager
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
And I remember everyone being blown away 5 years ago when we started paying 2/3 the price of a new moto, for something that was missing the motor.

Funny how MTbike production growth and pricing works opposite of the moto industry... basically the same materials, right?

I understand that very few bikes are mass produced, but if this really is a material and dollar bill issue... why haven't we seen moto pricing go through the roof as well?

Motos have gone up, but not at the rate of our motorless obsessions.

oem shock = $300 tops
raw materials = $400
bearings = $30
labor = $400
paint = $100
shop = $200
frame build total = $1430 (+ or -)

PROFIT = $1000- $1500 for a $2500-$3000 frame :huh:
been discussed plenty of times, read the archives. Motos use inferior manufacturing tecqniques compared to bicycles. There are minimum weight limits for moto racing classes and of course engines. A DH bicycle frame built with moto technology would weigh a MINIMUM of 18 lbs.

The old adage "strength, cost, and weight, pick two" applies here. If you are interested in more use the search function.

Dave
 

bullcrew

3 Dude Approved
A $700 increase is supply and demand. What does the oil in the fork amount to a couple of barrels and opec is tightening their reign on the free world fork market. A frame at $200 maybe $300 is a materials increas but $700 not a chance............. Company made an executive decision to have a better profit margin.
Forgot, the good news is IH owners can now sell last years rigs for what they paid . :D
 

MMike

A fowl peckerwood.
Sep 5, 2001
18,207
105
just sittin' here drinkin' scotch
A $700 increase is supply and demand. What does the oil in the fork amount to a couple of barrels and opec is tightening their reign on the free world fork market. A frame at $200 maybe $300 is a materials increas but $700 not a chance............. Company made an executive decision to have a better profit margin.
Forgot, the good news is IH owners can now sell last years rigs for what they paid . :D

you say this based on.......?
 

CBJ

year old fart
Mar 19, 2002
12,881
4,226
Copenhagen, Denmark
Companies has to maintain the same profit margin % if possible. So by increasing the cost of a bike by only the increased production cost they would minimize profit margin %
 

gemini2k

Turbo Monkey
Jul 31, 2005
3,526
117
San Francisco
oem shock = $300 tops
raw materials = $400
bearings = $30
labor = $400
paint = $100
shop = $200
frame build total = $1430 (+ or -)

PROFIT = $1000- $1500 for a $2500-$3000 frame :huh:
LOL. Raw materials 400 bucks? Are you kidding? Theres like maybe 20 pounds of aluminum that going in to producing a DH frame (just the frame, no bearings, shock etc). Aluminum is like what, 2-3 bucks a pound, maybe 5 for really "good" aluminum?

So figure 4*20 (generous estimates)=$80

Are any of my assumptions wrong? (it's possible, I'm no production engineer). The bulk of the costs is development, which you have not included. But yes it is all a scam. Spec and IH have raised prices (a lot). And yet mongoose hasn't, yet they' improved the spec.......
 

bullcrew

3 Dude Approved
you say this based on.......?
You question me based on what?
I say it because i can and I really dont think that theres a $700 increase in materials or workmanship. BS Period!!!!!!!!!!!!!!

I never said that there wasnt an increase but after being in the manufacturing end of things and anodizing machined parts from around the globe I have a pretty good idea as to what goes on from a variety of suppliers and shops as well. Finding cost alternatives for shops was my primary job as well as trying to fit there bottom line.

BTW: Those links for the Karp rocked! Thanks :thumb:
 

dw

Wiffle Ball ninja
Sep 10, 2001
2,943
0
MV
Bullcrew,

Since when has anyone bought a bike directly from Iron Horse? There are 2 sets of people putting their markup on the bike after IH sells it. A bike shop and distributor work on margin, percentage points, not a straight markup. If IH sells a bike to a distributor for $100 and $200 respectively, the prices are not $200 and $300, more like $200 and $350. (#'s Just to illustrate the point.)
 

bizutch

Delicate CUSTOM flower
Dec 11, 2001
15,928
24
Over your shoulder whispering
Bullcrew,

Since when has anyone bought a bike directly from Iron Horse? There are 2 sets of people putting their markup on the bike after IH sells it. A bike shop and distributor work on margin, percentage points, not a straight markup. If IH sells a bike to a distributor for $100 and $200 respectively, the prices are not $200 and $300, more like $200 and $350. (#'s Just to illustrate the point.)
Dave...you must be very busy...that's about the least in depth explanation you've went for in a while.

As for increasing price on the bikes overall, I came from production too. And I'm a little bit skeptical, but not much. Frame is not modified as far as I can tell this year, so no new tooling, refitting or engineering costs to pass on to the client. It's a second year blueprint frame being fully speced out of the same facility as last year, so cost of production goes DOWN on a second year product. Plus, there are no new piece parts on the bikes this year that can account for a dramatic increase in costs, other than a set of Ti bolts.

If anything, last years pricing should mean more profit this year due to no dramatic startup costs for new designs...or maybe last year the World Cup was sold at a loss (Corvette theory), they are either breaking even or making a small profit this year.

My guess is the corvette theory applied last year so this year, they are actually trying to make a reasonable profit off the Sundays.
Add the increases from market pressures others have mentioned and I guess you're there at $6300.00. :thumb:
 

Sherpa

Basking in fail.
Jan 28, 2004
2,240
0
Arkansaw
Dave...you must be very busy...that's about the least in depth explanation you've went for in a while.

As for increasing price on the bikes overall, I came from production too. And I'm a little bit skeptical, but not much. Frame is not modified as far as I can tell this year, so no new tooling, refitting or engineering costs to pass on to the client. It's a second year blueprint frame being fully speced out of the same facility as last year, so cost of production goes DOWN on a second year product. Plus, there are no new piece parts on the bikes this year that can account for a dramatic increase in costs, other than a set of Ti bolts.

If anything, last years pricing should mean more profit this year due to no dramatic startup costs for new designs...or maybe last year the World Cup was sold at a loss (Corvette theory), they are either breaking even or making a small profit this year.

My guess is the corvette theory applied last year so this year, they are actually trying to make a reasonable profit off the Sundays.
Add the increases from market pressures others have mentioned and I guess you're there at $6300.00. :thumb:
I hope your joking. Theres NO way they don't make money on a $6k bicycle.

But if no one bought one, the price would go down. Seriously. Its a fact.
 

bullcrew

3 Dude Approved
Bullcrew,

Since when has anyone bought a bike directly from Iron Horse? There are 2 sets of people putting their markup on the bike after IH sells it. A bike shop and distributor work on margin, percentage points, not a straight markup. If IH sells a bike to a distributor for $100 and $200 respectively, the prices are not $200 and $300, more like $200 and $350. (#'s Just to illustrate the point.)
Uh yeah, i was going to type a rebutal but theres too many angles to hit it from and I dont have time.
Wow! Iron Horse has just become a center for presedential debates along with tax reform and relegion (can go on for hours and still have no end). There is no right answer just your own. :banana:
That makes me right!!!!!!!!!!
 

ChrisKring

Turbo Monkey
Jan 30, 2002
2,399
6
Grand Haven, MI
You guys are all nuts. Do you think we should have government supplied bikes too? If the price is too high, buy something else.

If you think that the manufactures are burning $100 bills, start making your own frames and grab a piece of that pie. Really though, I am sure that it takes years to amoritize the ED&D and tool expense across relatively very few frames.

There are many things that are probably affecting the price including the exchange rate, material pricing, fuel pricing, labor, etc.
 

Kornphlake

Turbo Monkey
Oct 8, 2002
2,632
1
Portland, OR
I'm not sure if it adds confusion or confirmation to the discussion but I happen to be employed by a company that does a lot of fabrication. My job descripiton involves providing manufacturing quotes for marketing so I plugged some very generic numbers into our quoting spreadsheet to get a very rough estimate, based on steel tube at our cost. I assumed no gussets, I assumed robotic MIG welding, I assumed all tubes were straight, I assumed all tubes were the same diameter and that the total length of tubing consumed was 20ft, I assumed front and rear triangles would be powder coated black with no decals. I did not calculate the cost of dropouts or welding them to the frame, welding cable stops, reaming the head tube, threading the BB, slitting the seat tube for a seat clamp, machining linkages, assembling the linkages to the frame, the cost of bearings, or other misc goods associated with a complete frame.

The price I came up with for a very basic, essentially non-functional, front and rear triangle made out of 2"x.120 straight gage low carbon steel tube throughout is about $90. Total material cost was around $35, I'd expect custom drawn aluminum tubes to be several times that cost, TIG welding aluminum will be more expensive than robotic welding steel, I'd expect 2-3 times our cost for welding steel. The machined linkages, machined pivot points, headtube and bottom braket machining could eaisly cost more than the fabrication cost of the tube frame. The shock will add another few hundred, the cable stops, seat clamp, dropouts, bearings and other odds and ends will add another hundred or so. I could easily believe IH's costs for a complete frame with a shock and all necessary hardware would be in the ball park of $800. I know that our marketing department will double our manufactured cost for a baseline selling price, which is consistant with what I've seen in other industries, the distributors get their cut, vendors get their cut and MSRP ends up being as much as 8x the manufacturing costs. 8x $800=$6400 so the prices seem pretty well justified, IH is making an average profit, not to mention that I'd be suprised if IH hadn't been operating at very low profit margins for the last several years to build brand loyalty.