Quote:
Originally Posted by b.steelman
I know the new prices seem high. After my brain crashed and burned, and the decision was made to start over, some serious reevaluation was necessary to avoid a repeat. I have been doing this for almost 30 years and have sold a lot of bikes. Outside the satisfaction derived from seeing happy customers, the ratio of reward to hard work is out of balance. If you want to call me I will tell you the average bottom line on the schedule c for those years of work. It is embarrassing. Is it an evil thing if I want my wife and I to live on 60K instead of 21k? Most people in America make much more than a good frame builder and they don't work nearly as hard. If I don't sell bikes at the new prices, which are based on real costs and a decent wage, then it shows the market is unwilling to reward the skills needed to produce a top level product. I am not embarrassed by the prices because they are actually a fair value. You get a great bike and maybe I can buy some health insurance and start a small retirement account.
|
I don't think its evil at all. I'm all for making as much money as the market allows. Its just that products, typically, have to be priced in line with the competition. Clearly there is technically no competition for a Steelman, as you are the only outlet. But there are many framebuilders who can build a very similar product and currently charge a substantially lower price. The fact that you have 30 years experience is only relevant to pricing power if it translates into differentiated product in the eyes of the consumer.
I recall speaking with Bruce Gordon a couple years ago about one of his customs, the price tag was north of 5k and he felt quite justified in his pricing when considering the time, effort and experience that went into it and maybe he was right, but that was still too much money for me and I will bet he didn't sell too many of them.
Perhaps the price of a handmade steel frame is artifically low because some of the artisans have working wives with benefits, lower overhead, less monetary ambition, high quality of life etc.
No question you do some mighty fine work, so best of luck going forward.