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Road Bike Economics

By spokesman | October 30, 2008

STI Shifter

Why are road bikes so expensive?  One of the primary culprits is the STI shifter (pictured above).  Virtually all road bikes manufactured today, especially those from the top companies (Trek, Specialized, Bianchi, Cannondale etc) have STI shifter from either shimano or campagnolo .  These shifters are complex and expensive components.  I love the advantages of STI shifters including the ease of shifting.  However the disadvantage is the high price for road bikes and particularly entry level bikes.  The lowest list price for the least expensive Trek road bike with drop style handler bars is $700.  Mountain bikes with equivalent quality frames and gears but less expensive shifters cost hundreds less.  Similarly, flat handlebar road bikes with less expensive shifters are also much cheaper .  It was not always this way.  There are less expense shifters that can be used with drop-style handlebars.  Down-tube, stem and bar-end shifters are far less expensive but are not widely made any more.  These is still a market for bar- end shifter for touring, time trial and tri-athlete bikes.  However since the time trialists and tri-athletes use expensive bikes,  the shimano bar end shifters are only made for the higher end components groups. 

Local bike shops would rather sell the higher priced, higher margin road bikes.  There is a large market for these bikes.  However I believe that there is significant unmet demand for less expensive road bikes.  Just look at the listings on craigslist.  Older steel frame road bikes , some dating from the biking boom of the 70s are hot commodities.    Many of them sell for the price of a brand new entry level mountain bike.  Older Peugeots, Motobecanes, Bianchis, Raleighs and Fujis sell like crazy on craigslist.  A used older road bike is often the best options for someone that wants a road bike with drop style handlebars but can’t or doesn’t want to layout $700 or more.   I wish  that the bike manufacturers would recognize this market and start to produce some entry level steel or aluminum road bikes with modern frame geometry and less expensive shifters.   I think the manufacturers would be surprised at the demand for these bikes.

I did notice a posting discussing a new bike that is a replica of an older style bike.  While that bike is still targeted at a higher end of the market, maybe it could be the start of a trend to make affordable entry level road bikes.

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Topics: Bicycles And Business, Maintenance and Repairs |

3 Responses to “Road Bike Economics”

  1. Pete Says:
    October 30th, 2008 at 10:31 am

    I am a die-hard bar end user, and totally agree with you on the barrier of entry argument. In a racing situation, STI’s may be the make or break, but for everyday commuters, long-haulers, and folks just getting from point a to be with a couple of shifts in between, well… There’s little point (especially considering that, although comfortable, Shimano hoods and the guts there-in are non service-able! You know how we service down tubers, thumbies and bar ends? Tweak down on a little bolt, usually with a thumb and forefinger. Not rocket science).

    Danged near every bike that makes it out of our little shop of horrors has Thumbies or Stem shifters. No fuss, no muss, just long lasting smooth-nuss.

    Keep it old school, and I’ll be riding one of those fujis sooner than later…

  2. wirehead Says:
    March 12th, 2009 at 12:42 am

    Do you think that it’s really that STI shifters are that much more complicated to manufacture than an indexed trigger shifter + brake or is it just that Shimano, SRAM, and Campy figure that people will pay more for them? I tend to think it’s the second. :)

  3. Campagnolo Cyclist Says:
    January 17th, 2010 at 1:04 am

    When you actually sit down and look at all the different components you suddenly realise what am amazing and often overlooked feat of engineering it is

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