:) we now have orangebikes.com.au :( they're a bit fecking expensive

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tumble

Likes Dirt
golden path said:
I like the single pivot duallies, but they are just too expensive for what they are.
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In the long term they more than make up for it in maintenance costs.


On track, when it all boils down lets face it, Oranges are a boutique bike & you're only gonna buy one if you're made of money. So good on them for not wanting to cheapen the brand.
Lets blame the GFC for making some of us so money sensitive nowadays.
 
Hugor

Hugor

Likes Dirt
tumble said:
In the long term they more than make up for it in maintenance costs.


On track, when it all boils down lets face it, Oranges are a boutique bike & you're only gonna buy one if you're made of money. So good on them for not wanting to cheapen the brand.
Lets blame the GFC for making some of us so money sensitive nowadays.
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Oranges are not boutique FFS. They are one of the cheapest duelly's you can buy in the UK.
In Australia you will pay boutique prices for them but thats because half that money is going to the tax man. You're just paying heaps for an average bike.
If you can afford a boutique bike then spending a couple of hundred bucks replacing pivot bearings every few years is not a concern. You will probably upgrade your frame before then anyway.
You don't buy a boutique bike to get value for money in the long run. Boutique bikes are a rip off by definition.
 
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liam92

Squid
There are a few reasons why the Australian shop will cost more.

As has been said our import, shipping, gst taxes and duties hugely mount up, look at any imported goods and you will see that we are more expensive than oversea's (eg, Any non aussie car)

CRC buys huge numbers of product at reduced wholesale, and runs a very very small margin. Ever wondered why products come out at weird prices (eg $2356.48 - why not just $2349?) every product they sell is marked up with the same low margin equation.

We dont have a large market either, something like orange bikes arent going to sell in the thousands per year in our marketplace, we cant negotiate the huge deals euro shops can.

To put it into perspective I had a client last week wanting the latest Dura-Ace roadbike wheels. The wholesale cost was significantly more than the delivered chain reaction price (im talking hundreds more!). Its unfortunately the payoff for living in Aus.
 
floody

floody

Wheel size expert
Welshy said:
Australia is over 7,000 miles closer to Taiwan than America, so it's not shipping costs, and bike shops are faced with the same inflation we are, so what's left in the middle? Only the wholesalers and importers...
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Shipping costs will be higher than you think. Distance plays a part, certainly, but its not the only factor.

As a realistic example, did you know it costs almost the same to ship a car from New Zealand to Australia - 2200km - as it does from Japan to Australia, which is 7000km? Volume is a HUGE part of the equation.
Imports from NZ would be in the hundreds, from Japan, tens of thousands.

How do you think that affects prices to Australia, when the total market would be lucky to be 5% of the US or UK ones?
 
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J

J--A--C--K

Likes Bikes
im failing to see the problem with cost i havnt bothered reading to much other than the first page of this thread but it seems all that same on page five . and looking at the 224 wc for $6999 it really dosnt seem that xepensive
 
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pinkgoat

Likes Dirt
Some of those prices are amazing, on both ends of the spectrum however..

224 Evo Race (decked out complete): $5800

224 Evo Frame: $4000

:confused:
 
0

0psi

Eats Squid
pinkgoat said:
Some of those prices are amazing, on both ends of the spectrum however..

224 Evo Race (decked out complete): $5800

224 Evo Frame: $4000

:confused:
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Yeah, you'll get that with most manufacturers. Don't know why but a frame only will usually cost about 50%-70% of the complete base model.

The build kits that the manufacturers supply are pretty much at cost to both the supplier and manufacturer, they really are very cheap indeed. Personally I'd like to see a move to drop the price on frames a smidge and the suppliers making a little coin on the build kits.
 
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stinkybigmacc

Likes Dirt
Maybe this may clarify things a little. I manage a small plastics factory, we use around 400t of plastic per year at a cost of $2.45 per kg instore. A mate works at another factory in Brisbane which uses the same importer and grade of plastic as us but they consume around 2000t annually at a cost of $2.10 per kg. The reason for this cost variation is:

1. Buying power

2. They way in which the supplier is both paid and how each business manages its
payment responsibilities

3. Manufacturing windows and runs which alow the price advantage to go to the large
customer

The other thing to keep in mind is every business is set up differently in relation to overdafts, merchant fees, and basic running costs. We have been offered as low as $2.30 but the terms go from 90 days to 30 days and we don't have the capacity to turn the stock over that fast so we use the supplier as a sort of overdraft.

This is often where the larger price differentials come from.
 
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Sethius

Crashed out somewhere
0psi said:
Yeah, you'll get that with most manufacturers. Don't know why but a frame only will usually cost about 50%-70% of the complete base model.

The build kits that the manufacturers supply are pretty much at cost to both the supplier and manufacturer, they really are very cheap indeed. Personally I'd like to see a move to drop the price on frames a smidge and the suppliers making a little coin on the build kits.
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That's spot on, there is very little difference in some cases between the pricing, and at times it's only the freight costs that really make a difference over a bulk order for some.

Orange bikes isn't that far out of line either, heck we are ~$500 more on our frames after shipping and GST etc than our UK partner who gets alot more stock, cheaper pricing and freight from germany-england sure is a heck of lot cheaper than germany to aus. If we charged the actual RRP's they'd be priced beyond most other frames.

Same goes for orange, they've got no freight pricing to be considered compared to the Aussie crowd. That's like comparing a car made in the UK, being the same price here in Aus without freight, you wouldn't do that.

and Floody's right, we pay by cubic inches, you imigine 50 rims boxed up, that's alot of empty space we are paying for, the same goes for a bike box, it may only weigh 20 kg, but its cubic weight its 40-60kg.
 
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liam92

Squid
Just a note on the frame price, retailers actually make very very little margin on any frame-set wether it be road or mountain (not that they make much on complete bikes either :rolleyes:)

The big thing to remember when looking at complete bike vs Frameset price is that most of the larger companies actually own or heavily invest in their accessory brand. Trek for example own Bontrager so obviously trek's margin on a complete bike is much larger than it would be on just a frameset as they make money both selling the frame and the bontrager parts they have paid literally the material cost of. Im sure when you order hundreds of thousands of groupsets from Shimano you get quite the discount
 
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