Steelman Closing Shop?

[mistermo]

Originally Posted by Spin71

Are you seriously comparing the two situations?

Yes, indeed I am. PM me if you want to discuss.

[BCS]

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."

Assuming you have built between 100 and 200 frames per year, this would imply a per frame profit of less than $200. Frame builders must really love their work. FYI, you can probably qualify for Medicaid at 21K per year.

Best of luck with all future endeavors.

[rugbysecondrow]

Originally Posted by BCS

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."

Assuming you have built between 100 and 200 frames per year, this would imply a per frame profit of less than $200. Frame builders must really love their work. FYI, you can probably qualify for Medicaid at 21K per year.

Best of luck with all future endeavors.

100-200? Don't most frame builders only build 45-65 a year? One frame a week average with time built in for shows, time off etc?

[BCS]

Originally Posted by rugbysecondrow

100-200? Don't most frame builders only build 45-65 a year? One frame a week average with time built in for shows, time off etc?

This was based on 25+ years at the bench and having handled thousands of frames-direct quotes from across the hall. Who knows what this really means. The numbers still suck. IMO, prognosis is guarded

[mistermo]

As compared to the new Serotta pricing, Steelman pricing seems to be in line. Serottas now go for $3800-$8600 for frame/fork.

Steelman could be a "bargain" at $4350-$5500! Speaking for myself, I'd rather have the Steelman.

Lest we need reminding, Serotta and Steelman aren't competing with Trek, Giant, Specialized, etc. They are "luxury goods" and competing with other luxury goods like Ducati's, Benz's, Rolex's, etc. Pricing for luxury goods is less elastic than pricing for a Trek.

[Joachim]

Originally Posted by mistermo

As compared to the new Serotta pricing, Steelman pricing seems to be in line. Serottas now go for $3800-$8600 for frame/fork.

Steelman could be a "bargain" at $4350-$5500! Speaking for myself, I'd rather have the Steelman

I guess that would make Spectrum, Firefly and Dave Kirk a lower/middle tier builder on pricing. Now that is a bargain!

[firerescuefin]

Originally Posted by Joachim

I guess that would make Spectrum, Firefly and Dave Kirk a lower/middle tier builder on pricing. Now that is a bargain!

Amen.

I don't know if I would target Serotta's pricepoint...it doesn't seem to be working for them too well right now. Basic economic theory tells us very few people, in any industry, can dictate price. Hard to look at the Zanc, Kirk, Spectrum,Strong, Peg, IF, Firefly, Vanilla, etc. and justify that pricepoint (as a consumer). Time will soon tell.

[Spin71]

Originally Posted by mistermo

Yes, indeed I am. PM me if you want to discuss.

He never closed his shop. Never returned deposits (to the best of my knowledge) Production never completely stopped, wait time just increased. Pegoretti isn't a one man shop. He didn't re open after his clean bill of health with a huge price increase and told the people he refunded deposits they could get back on line with a huge increase. Apples and oranges.

[mistermo]

Originally Posted by Spin71

He never closed his shop. Never returned deposits (to the best of my knowledge) Production never completely stopped, wait time just increased. Pegoretti isn't a one man shop. He didn't re open after his clean bill of health with a huge price increase and told the people he refunded deposits they could get back on line with a huge increase. Apples and oranges.

Your knowledge is wrong. PM me if you want to continue. This isn't the place.

[clweed]

Here is podcast of an interview with the Outspoken Cyclist and Brent in June of 2011

Pretty interesting stuff.