Why Motorcycles and Mountain Bikes Cost the Same

00:08:52
https://www.youtube.com/watch?v=BS9ugdl1FZc

Resumen

TLDRThis video discusses the pricing and value of motorcycles versus mountain bikes, specifically comparing the KTM Duke 390 and Norco mountain bikes. It highlights the differences in manufacturing processes, market demand, and consumer expectations. The video argues that while bicycles may seem overpriced, their costs are justified by the components and technology involved. The discussion also touches on the global market dynamics and how they influence pricing strategies for both motorcycles and bicycles.

Para llevar

  • 🏍️ Motorcycles like the KTM Duke 390 are mass-produced, leading to lower costs.
  • 🚴‍♂️ Mountain bikes, such as those from Norco, often have higher prices due to customization.
  • 💰 The global market for bicycles was valued at $96 million in 2021.
  • 📈 Market demand significantly influences the pricing of both motorcycles and bicycles.
  • 🔧 Manufacturing processes differ: motorcycles are standardized, while bicycles are often customized.
  • 💵 High-end mountain bikes can reach prices like $88,000, reflecting their advanced technology.
  • 🌍 Global economic conditions affect how much manufacturers can charge for their products.
  • 🤔 Consumer expectations for quality can drive up bicycle prices.
  • 🔄 The bicycle industry evolves rapidly, with new technologies emerging frequently.
  • 📊 Pricing strategies are influenced by local markets and consumer purchasing power.

Cronología

  • 00:00:00 - 00:08:52

    In this video, Ryan F9 discusses the pricing and value of bicycles versus motorcycles, specifically comparing the KTM Duke 390 and the Norco range. He highlights the subjective nature of value in the biking community, emphasizing that while some may find bicycles overpriced, others see value in their features and performance. The conversation shifts to the global market dynamics, where KTM's pricing strategy is influenced by its broader international market, while Norco focuses primarily on North America. Ryan points out the differences in manufacturing and market strategies between motorcycles and bicycles, noting that motorcycles often have a longer product lifecycle, whereas mountain bikes evolve rapidly. The discussion also touches on the perceived value of high-end mountain bikes and their proximity to professional-level equipment, leading to a deeper exploration of consumer expectations and market trends.

Mapa mental

Vídeo de preguntas y respuestas

  • Why are bicycles considered overpriced?

    Bicycles are often seen as overpriced due to the high cost of components and the niche market they cater to, especially in North America.

  • What is the global market size for bicycles?

    In 2021, the global market for bicycles was valued at $96 million, with mountain bikes making up 29% of that.

  • How does the pricing of motorcycles compare to bicycles?

    Motorcycles generally have a larger market and can be produced at a lower cost due to economies of scale, while bicycles often have higher markups.

  • What factors influence the price of mountain bikes?

    The price of mountain bikes is influenced by the materials used, technology, and the target market, which often includes high-end consumers.

  • How does the manufacturing process differ between motorcycles and bicycles?

    Motorcycles are typically produced on a single assembly line with standardized parts, while bicycles often require customization and assembly of various components.

  • What is the significance of the $88,000 mountain bike?

    The $88,000 mountain bike represents the high-end market where consumers are willing to pay for performance and technology similar to professional racing bikes.

  • Why do consumers pay high prices for bicycles?

    Consumers often pay high prices for bicycles due to perceived value, brand prestige, and the desire for high-performance equipment.

  • What role does market demand play in pricing?

    Market demand significantly influences pricing, as manufacturers charge what consumers are willing to pay based on their perceived value of the product.

  • How do consumer expectations affect bicycle pricing?

    Consumer expectations for quality and performance can lead to higher prices, especially in competitive markets where brands differentiate themselves.

  • What is the impact of global markets on pricing?

    Global markets affect pricing strategies, as manufacturers must consider local economic conditions and consumer purchasing power.

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Desplazamiento automático:
  • 00:00:00
    hi after you it no a after you um
  • 00:00:04
    because if I'm in a video with you I get
  • 00:00:06
    internet street cred but I get Internet
  • 00:00:08
    Hate if I step in front of the motor
  • 00:00:09
    goat the valet of video the Rossy of
  • 00:00:12
    reviews that's totally plenty right I'm
  • 00:00:15
    Ryan F9 and this KTM Duke 390 contains
  • 00:00:18
    2348 components totaling 338 lb and it
  • 00:00:22
    costs $
  • 00:00:24
    7,349 and I am the dod this Norco range
  • 00:00:28
    weighs about 37 lb contains just over
  • 00:00:30
    1,000 components and retails for
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    $735 let's find out
  • 00:00:42
    why eight grand for something you pedal
  • 00:00:45
    is depressing that's inexplicable yet
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    inescapable if I want to ride the
  • 00:00:50
    NorthShore and not be scoffed at
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    bicycles are tragically
  • 00:00:55
    overpriced so this is this whole thing
  • 00:00:58
    is subjective right I mean I I like fun
  • 00:01:00
    bright colors you dress in a style that
  • 00:01:02
    I would only describe using the port
  • 00:01:04
    Monto out dorky it's about value it's
  • 00:01:07
    like what each of us would pay for what
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    we
  • 00:01:12
    value fair so let's set the subjectivity
  • 00:01:15
    aside and we'll break it down just by
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    the
  • 00:01:19
    [Music]
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    Numbers every year there are 40,000 of
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    these made by baj in India for 80 80
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    Global markets Brazil turkey South
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    Africa whereas those are handbuilt for
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    dentists in North America the UK Spain
  • 00:01:38
    and Italy it's a case of charging
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    however much your consumers are willing
  • 00:01:41
    to pay so here's the thing you're
  • 00:01:43
    conflating scale with purchase or
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    tolerance your argument holds about as
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    much water as 43 did knowledge of
  • 00:01:50
    anodizing in 2021 the global market for
  • 00:01:53
    bicycles was 96 million 29% of that was
  • 00:01:57
    mountain bikes that puts mountain bikes
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    just shy 28 right motorcycles same year
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    Global Market 47 million that's bigger
  • 00:02:06
    yeah except 37% of that was scooters and
  • 00:02:09
    I'm not going to count scooters in this
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    no right that's just shy of 30 million
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    okay those numbers are really close at
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    which point scale kind of becomes a moot
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    point touche but this is still a global
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    product I mean to do
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    38.3% of their business in Asia Africa
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    and South America which they do and KTM
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    has to charge 297,000 rupees for the
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    dudes ripping to work in Puna meaning
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    they can't charge that much more than a
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    grand Canadian unless they create a
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    black market of import bikes being sold
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    at a profit that isn't
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    theirs good point whereas Norco you know
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    they don't really need to think about
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    how their product fits into a global
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    market in the same way they don't care
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    no 90% of their Market is North America
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    people who are pretending to be Yon
  • 00:02:59
    barell on the weekend it's a
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    beauty they don't they don't have to
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    think about how that piece fits into the
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    global puzzle right gotcha because the
  • 00:03:10
    motorcycle is a practical Transportation
  • 00:03:12
    tool in some markets it drags down its
  • 00:03:15
    price in all markets okay but that being
  • 00:03:17
    said just because uh people can charge
  • 00:03:20
    $88,000 for a mountain bike doesn't mean
  • 00:03:22
    that everyone with a welder and some
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    steel is running a get-rich quick scheme
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    there's still actual value here and good
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    reason it costs so
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    [Music]
  • 00:03:33
    much how close is that to a competition
  • 00:03:37
    motorcycle oh it's not even on the same
  • 00:03:39
    Planet ktm's Moto GP bike cost $2
  • 00:03:42
    million they might right ready to race
  • 00:03:44
    on their street bikes but if you read
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    the manual racing is going to avoid your
  • 00:03:48
    warranty see this is kind of what I'm
  • 00:03:50
    talking about whereas this $88,000
  • 00:03:52
    off-the-shelf bike is probably like 70
  • 00:03:55
    80% of what a prole bike could be look
  • 00:03:58
    if you don't believe me let's ask a pro
  • 00:04:00
    Rider uh yo belli uh how are you hi good
  • 00:04:03
    sir oh sir sir was my father's name
  • 00:04:05
    anyways question for you how close is an
  • 00:04:08
    $88,000 offthe shelf mountain bike
  • 00:04:10
    compared to something you might ride in
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    the tour dinar well to be completely
  • 00:04:13
    honest it's pretty much the same exactly
  • 00:04:16
    and give or take price-wise what would
  • 00:04:18
    you say your prole bike would cost
  • 00:04:20
    retail around1 11,000 yeah exactly can I
  • 00:04:24
    go for right now that is something but
  • 00:04:27
    why should a dentist care to have the
  • 00:04:29
    pro equipment I mean consumer
  • 00:04:30
    motorcycles are nowhere near competition
  • 00:04:32
    it's fine we cruise around on the street
  • 00:04:34
    at 60 we're not on track at 300 we're
  • 00:04:35
    happier to have the cut prices why do
  • 00:04:38
    you want this prole Market this Pro
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    level thing because to be honest in a
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    sport without insurance the insurance
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    policy is a PR level product you see
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    your average dentist or any rider that's
  • 00:04:51
    riding that $88,000 bike is going to
  • 00:04:53
    push themselves to 70 to 80% of what a
  • 00:04:56
    pro can do only they're going to do it
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    worse
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    so the bike has to be well built sure I
  • 00:05:04
    can see the proximity to professional
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    level explaining the turnover disparity
  • 00:05:08
    too motorcycles it's not uncommon for a
  • 00:05:12
    model to sit on change for 10 20 30
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    years they're not trying to be Cutting
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    Edge Equipment so nobody really cares
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    whereas in the mountain bike industry
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    which is still very new what was new 5
  • 00:05:23
    years ago is now out of date things are
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    evolving so fast it forgive the phrase a
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    break next speed uh suspension designs
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    Manufacturing Technologies geometries of
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    the frame one of the similar bikes to
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    this one in norco's lineup the site has
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    at least nine different versions over
  • 00:05:41
    the past 10 years right this is like
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    almost one a year
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    yeah you know what dude mhm I'll buy
  • 00:05:57
    your freaking peleton if it's that close
  • 00:05:59
    to the the pro level excellent get you
  • 00:06:01
    on a bike and honestly like I kind of
  • 00:06:03
    want to try something that contains
  • 00:06:05
    actual explosions for the same prices my
  • 00:06:08
    bike deal okay what is all this okay so
  • 00:06:13
    Narco site uh first thing we got to
  • 00:06:15
    choose whether you want carbon fiber or
  • 00:06:17
    aluminum right okay and then we want to
  • 00:06:19
    decide whether we want the uh which
  • 00:06:21
    parts like C1 C2 C3 or A1 A2 A3 it's
  • 00:06:24
    going to be sham or shano it's going to
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    change the weight and the performance of
  • 00:06:26
    the bike there's a flight attended
  • 00:06:28
    version don't get that and then the
  • 00:06:29
    youth version obviously not your size
  • 00:06:31
    clicking yep all right so now we've got
  • 00:06:34
    sizes extra small small medium large
  • 00:06:36
    extra large you're going to be an extra
  • 00:06:37
    large but you got to decide if you want
  • 00:06:38
    that in a 275 wheel size or a 29er look
  • 00:06:41
    at all those colors uhhuh there you go
  • 00:06:44
    just uh add the cart okay your
  • 00:06:47
    J
  • 00:06:51
    okay
  • 00:06:56
    Dam all I see is orange correct
  • 00:07:01
    right but but like where's the size like
  • 00:07:03
    how do I know which size to get
  • 00:07:07
    yeah what am I missing I'm missing
  • 00:07:09
    something here what your credit card but
  • 00:07:11
    no but like I'm 195 cm my mom's 150 we
  • 00:07:14
    shouldn't be riding oh no don't worry
  • 00:07:16
    about that what about like what about
  • 00:07:18
    like seat height it's okay no but like
  • 00:07:22
    the bar has to be for me and then no it
  • 00:07:25
    cuz I need the ri to for I just don't
  • 00:07:28
    understand
  • 00:07:30
    what comes next is our final difference
  • 00:07:32
    you placed your customized bicycle order
  • 00:07:33
    now Norco has to make one of 264
  • 00:07:36
    permutations from what feels like one of
  • 00:07:39
    264 contracts with third party part
  • 00:07:41
    suppliers and pay a local mechanic
  • 00:07:43
    living wage to put together your one of
  • 00:07:46
    264 builds whereas your KTM 390 will get
  • 00:07:50
    the same frame same tires same chains
  • 00:07:53
    same battery same Brak same suspension
  • 00:07:55
    as all other KTM 390s one set of
  • 00:07:59
    middleman contracts to rule them m one
  • 00:08:02
    assembly line in
  • 00:08:03
    India very convenient for KTM so
  • 00:08:07
    motorcycle manufacturers and dealers
  • 00:08:09
    take 15% each right whereas this is
  • 00:08:12
    specifically convenient for you so
  • 00:08:14
    bicycle manufacturers and dealers take
  • 00:08:16
    30% each I'm actually okay with
  • 00:08:23
    that thank you very much for watching
  • 00:08:26
    and thanks to Flying Eyes for sponsoring
  • 00:08:27
    this video by now many motorcyclists are
  • 00:08:30
    benefiting from the sunglass Holy
  • 00:08:34
    Trinity why shouldn't bicyclists also
  • 00:08:37
    benefit from the pilots I wear to
  • 00:08:43
    schwat it's a
  • 00:08:47
    [Music]
  • 00:08:51
    neutral
Etiquetas
  • motorcycles
  • mountain bikes
  • KTM Duke 390
  • Norco
  • pricing
  • value
  • manufacturing
  • market demand
  • consumer expectations
  • global market