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your basically saying a frame that costs 3 grand is 3 grand when its alone and with 3 grands worth of components, its 4 grand
Pretty much, and a quick analysis of the retail prices of frames and ready built bikes, in those instances where the manufacturer offers either option, bears this out. Obviously the effect in percentage terms is stronger at the lower end, but in general for bikes sold with metal wheels, the complete bike is usually priced at about the sum of the separate frameset price plus the groupset price, with the wheels and finishing kit effectively free.
gbj_tester-
That theory and behaviour in the market is only applicable when there is a reduction in the frame, sales on frame sets never outnumber complete. So when mid season comes around, not only doe the manufacturer want to move more frames to the distributor to push to the end user. If demand is there the customer doesn't find his discounts. The manufacturers forecast will determine the market fluctuations, and for arguments sake this is only applicable to current season, the rest falls I to the realms of retail warfare, however nitty gritty it gets but they usually respect the threshold of discounts amongst themselves.
Nially
No their not as that type of behaviour in the market would destabilise it, you will find across the board with every brand as seasons pass that the only thing that will devalue stock is time and the release of newer versions in order to drive the market, however, if the fame price did not reflect the respective value of the components in its current market then it would be literally ....... fucked, your basically saying a frame that costs 3 grand is 3 grand when its alone and with 3 grands worth of components, its 4 grand. You'll find when the market takes that type of behaviour, both frame and components have devalued equally due to the new direction of the market.