Slowtwitch Forums: Triathlon Forum: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace

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Slowtwitch Forums: Triathlon Forum:
Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace

Monopolisf

Feb 21, 05 1:24

Post #1 of 11 (652 views)

Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace	Can't Post

I'm interested in purchasing a P2K w/ a factory dura-ace kit. So I did the math (based on Cervelo's pricing) to attempt to determine the price.

$3599 (P3SL Complete Bike) less $2199 (P3SL Frameset Value) = $1,400.00 Dura-Ace Component Kit

$2099 (P2K Complete Bike) less $1199 (P2K Frameset Value) = $900 Ultegra Component Kit

So it cost $500 more to get the Dura-Ace kit...and the only upgrades are to the drivetrain (cassette, chain, and derailuers). Retail that costs about $220-250 bucks to upgrade based on individual retail prices of drivetrain components. I'm wondering if my LBS will upgrade the drivetrain if I offer to pay the retail difference.

I'm not trying to knock Cervelo...I think they are the greatest thing to happen to triathlon since aerobars...but I don't understand why there is a giant price disparity?

(This post was edited by Monopolisf on Feb 21, 05 1:26)

Mac

Feb 21, 05 8:56

Post #2 of 11 (517 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Monopolisf] [In reply to]	Can't Post

got my P2K with dura-ace. got it all from the shop. was able to get what I wanted
DA: cranks, brakes, fr/rear der, chainrings, bar end shifters
cane creek headset
syntace aerobars & brake levers
hmmm...did I leave anything out?

Tom Demerly

Feb 21, 05 10:21

Post #3 of 11 (388 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Monopolisf] [In reply to]	Can't Post

The primary reason why Dura-Ace is more expensive than Ultegra is because the price is higher.

http://www.bikesportmichigan.com/
(NOTE: This poster owns a retail business selling triathlon related products).

Ginsu Dave

Feb 21, 05 10:26

Post #4 of 11 (369 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Monopolisf] [In reply to]	Can't Post

Are the wheels, tires, and other parts outside of the core kit the same across both bikes, or could that explain some of the difference as well?

bunnyman

Feb 21, 05 10:36

Post #5 of 11 (344 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Monopolisf] [In reply to]	Can't Post

It's a bit less of a price difference between P3SL Dura 10 and Ult 10, but not a whole bunch. There must be other spec that is missing. I will check again.

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Dammit! I still smell like cotton candy!!!

bunnyman

Feb 21, 05 10:40

Post #6 of 11 (328 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [bunnyman] [In reply to]	Can't Post

That is bizarre, no difference in spec with the exception of main drivetrain components. I would get Ultegra10, trade your ultegra stuff for Dura Ace, and go from there.

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Dammit! I still smell like cotton candy!!!

UCSD racer

Feb 21, 05 10:47

Post #7 of 11 (310 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [bunnyman] [In reply to]	Can't Post

I would guess the business people over at Cervelo have looked at the market demand and foresee a lot fewer people purchasing P3SL's than P2K's (probably because of the price point) and therefore wish to sell more P2K's with less profit per unit to maximize their total profit.

Increasing awareness for suffers of DGS (Diminished Gluteal Syndrome).

bunnyman

Feb 21, 05 10:50

Post #8 of 11 (300 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [UCSD racer] [In reply to]	Can't Post

P2K IS the new One, even though they brought back the One, it just ain't the same as the One I remember from years ago. I think you are on target.

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Dammit! I still smell like cotton candy!!!

tom

Feb 21, 05 10:52

Post #9 of 11 (296 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Monopolisf] [In reply to]	Can't Post

I don't know the specs or the differences between them, but how about this for an explanation:

If someone is willing to pay $3200+ for a bike, then $200 to $500 more isn't much different.

If someone is trying to decide on a P2k at $2099, the customer is much more likely sensitive to a $200 price swing than the $3200+ customer is.

Cervelo has a lot more competition in the $2000 price range, there is not *as much* competition in the $3500 range.

Cervelo is likely selling every P3SL that they make, and possibly have a considerable backlog. If this is true, wouldn't you add a couple hundred dollars to the price? Try going to a car dealership and telling the salesman that you absolutely have to have this car!!! See what price you can get. Remember when the new Volkswagen Beetle came out? Or the mini-cooper?

Stewart

Feb 21, 05 11:06

Post #10 of 11 (259 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Tom Demerly] [In reply to]	Can't Post

"The primary reason why Dura-Ace is more expensive than Ultegra is because the price is higher"

Brilliant

(This post was edited by Stewart on Feb 21, 05 11:08)

Monopolisf

Feb 21, 05 12:41

Post #11 of 11 (141 views)

Re: Cervelo Kit Pricing: Don't understand the giant disparity between ultegra and dura-ace [Stewart] [In reply to]	Can't Post

So Basically Cervelo is doing one of two things: (1) they are capitalizing on Man's ignorance coupled with demand>supply and selling the P3SLs at a premium, or (2) they have slashed the P2K's price to remain competitive in the $2,000 arena and making a greater profit from quantity sold verses relative profit per bike.

It is difficult to blame them as that mazimizes total return from both the P3SL and the P2K product lines.

So I'm going to assume that I won't be able to purchase a P3SL w/ Ultegra for ($2199+900 = $3,099) and then swap out the ultegra parts for dura-ace at my LBS. And they should assume that I won't pay ($1199+1400= $2599) for a P2K w/dura-ace when I can swap out the parts at my LBS and pay roughly $2300.

Sounds good to me. It is still a win for the consumer. I know both bikes are worth their price as well as my left arm.