Why Motorcycles and Mountain Bikes Cost the Same

Summary

In this video, Ryan F9 compares the cost and value of a high-end mountain bike and a KTM Duke 390 motorcycle, exploring why an $88,000 bicycle might be worth the price. He discusses global market influences, the practicality of motorcycles in certain regions, and the rapid evolution of mountain bike technology. The conversation also touches on the importance of professional-level equipment for serious riders and the customization options available for high-end bicycles, which contribute to their price.

Takeaways

• 🏍️ The KTM Duke 390 motorcycle is priced at $7,349 and contains 2348 components weighing 338 lb.
• 🚴‍♂️ A Norco range bike weighs about 37 lb, contains over 1,000 components, and retails for $735.
• 🌍 The global market for bicycles was 96 million units, with mountain bikes making up 28% of that market.
• 🏎️ The global motorcycle market was 47 million units, with 30 million being scooters, which are not included in the comparison.
• 💸 Motorcycles are considered practical transportation in some markets, which affects their pricing.
• 💰 The price of a high-end mountain bike can be attributed to its proximity to professional-level equipment.
• 🔧 The manufacturing process for bicycles involves more customization and variations compared to motorcycles.
• 🛠️ Bicycle manufacturers and dealers take a larger percentage of the cost (30%) compared to motorcycle manufacturers and dealers (15% each).
• 🌐 Bicycles are less affected by global market considerations compared to motorcycles, which are more standardized.
• 💡 The script suggests that the value in a bicycle is not just in the components but also in the technology and design that evolves rapidly in the industry.

Q & A

What is the significance of being in a video with Ryan?

Ryan mentions that being in a video with him can give someone 'internet street cred' but also attract 'internet hate', implying that his presence online can both boost and harm one's reputation.

How many components does the KTM Duke 390 have and what is its weight?

The KTM Duke 390 contains 2348 components and weighs 338 lb.

What is the retail price of the KTM Duke 390?

The retail price of the KTM Duke 390 is $7,349.

How does Ryan describe the Norco range of bicycles in terms of weight and components?

Ryan describes the Norco range as weighing about 37 lb and containing just over 1,000 components.

What is the retail price of the Norco bicycle mentioned in the script?

The retail price of the Norco bicycle is $735.

What percentage of the global bicycle market was for mountain bikes in the same year as the global motorcycle market data provided?

29% of the global bicycle market was for mountain bikes.

What percentage of the global motorcycle market was for motorcycles, not including scooters, in the same year?

The global motorcycle market, excluding scooters, was just shy of 30 million units, which is about 37% of the total motorcycle market.

Why does Ryan argue that the price of a bicycle can be high despite the cost of a motorcycle being lower?

Ryan argues that the high price of a bicycle is due to the value each person places on what they purchase, and that bicycles are often handbuilt and tailored to specific markets, unlike motorcycles which are mass-produced.

What does Ryan suggest about the global market strategy of KTM and Norco?

Ryan suggests that KTM has to consider the global market and charge different prices in different regions, while Norco primarily focuses on the North American market and doesn't need to adjust its pricing as much for global markets.

How does Ryan compare the $88,000 mountain bike to a professional-level bike?

Ryan finds that an $88,000 off-the-shelf mountain bike is very close to what a professional rider would use, with the professional rider estimating that it could be about 70-80% of a professional bike.

What is the main difference Ryan identifies between the manufacturing process of a motorcycle and a high-end bicycle?

Ryan points out that a high-end bicycle has a much more customized manufacturing process with many permutations, whereas a motorcycle like the KTM 390 is mass-produced with the same components for all units.

What is the final point Ryan makes about the pricing of bicycles compared to motorcycles?

Ryan concludes that the pricing of bicycles is justified by the customization, materials, and technology used, and that the profit margins for bicycle manufacturers and dealers are higher than those for motorcycles.