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This is not about the "Bay Area." The Bay Area is lousy with bike shops that cater to normal humans.
This is about AC. This is what they're about. They're not exactly trying to hide it, and their pricing has always been at this level relative to others. I think the only thing that's new here is that they're being a little more explicit about it. They do only custom builds and they charge full retail for every part. They typically spec the highest end components (Lightweight Wheels, CeramicSpeed bearings, Super Record groups, etc) and work with custom builders in the highest-end part of the market (Baum, Prova). It tells you something that the "cheap" bikes that they sell are from Mosaic and Pegoretti.
There is definitely a niche market for this, just like there is for high-end watches.
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