Michael Blahut
techie brain food...
It's no secret that the US dollar has been getting hammered against
other currencies for the last 12 months. Based on who you listen to,
it's lost 20% of its value against the Euro and 11% of its value against
the Yen in the last 16 months. Like many industries, the bike business
was put in a terribly difficult spot. Wholesale and retail prices for
the 2003 season were established right as the tailspin began. As the
year wore on, the steepest wholesale price increases we saw were 4% --
if anyone had tried raising prices any higher, their sales would've
stopped dead. As we roll into the 2004 product year, you can count on
prices getting adjusted with a vengeance. Starting a month or two ago,
we were assured that the revamped Campy Record and Chorus would go up in
price by roughly 20%. Dura-Ace 10-speed, we were told, would go up in
price by at least 25% in comparison to the current 9-speed.
Dura-Ace 10-speed is an especially interesting topic for us. Its
introduction will coincide with the total face-lift Shimano is giving to
its mail-order policy. For good reasons, Shimano is trying to (ahem) fix
the retail prices at which its components are sold. Why? They claim
they're tired of hearing complaints from bike shops that gigantic mail
order outfits are selling componentry for rock-bottom prices. As such,
Shimano has limited the mail order sales of its goods to five retailers.
They're the usual suspects -- Performance, Nashbar, Colorado Cyclist,
Excel, and somebody else I can't remember. Why them? They're widely
known, they publish nice catalogs, and they have quality mailing lists.
These outfits are smart enough to know a good situation when they see
it: The authorities at Shimano are willing to give them a monopoly on
mail order sales provided they're willing to abide by MSRP -- ensuring
full profit margins for them while eliminating all of their competition.
Not a bad deal.
We don't sell individual components (at least not yet), so Shimano's new
policy doesn't directly affect us. We do have a keen aversion to
injustice, however, and we've certainly pondered whether the restriction
of free trade in this fashion is legal. Furthermore, we're concered that
the next logical step for Shimano will be to ban the mail order sale of
Shimano-equipped bikes altogether. That would be a troubling situation
indeed.
But we digress. Let's get to the point -- the MSRP for individual
Dura-Ace 10-speed componentry. We don't doubt that you might have a
stroke when you review the pricing. If you must keel over in such a
fashion, as a parting thought remember that no one will offer better
pricing on Dura Ace 10-speed equipped bikes than Competitive Cyclist.
And if you must call us asking about the individual purchase of 10-speed
components, please make sure first that your phones aren't tapped!
Shimano Dura Ace 10-speed pricing Brakeset (F&R)
$224.99
10spd chain w/2 pins
$30.49
10spd cassette, 11-21, 11-23
$143.99
10spd cassette, 12-21, 12-23, 12-25, 12-27
$161.99
10spd crank w/o BB10spd
$365.99
10spd BB Unit
$35.49
10spd Front Derailleur, 28.6 or 31.8
$81.99
10spd Front Derailleur, Bz-on
$75.49
10spd Front Derailleur, Brz w/34.9 clamp
$82.99
10spd Rear Hub
$163.99
10spd Front Hub
$101.99
10spd Rear Derailleur
$114.99
10spd STI Levers
$384.99
I'll do the math for you -- it's $1400 for a group without headset and
hubs. Look in the most recent Excel and you'll see that the identical
package in Dura Ace 9-speed costs $769. Ouch.
=time for campy