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Is it just me or does the $2250 price for the new KM40 frameset seem a bit steep? The new USA made Aegis frameset is at $2200. I can only imagine Kestrel plans for huge gross margins from a Chinese made KM40 at that price point. I realize the molds are expensive but even those are now made in Asia. I was expecting this frameset to come in under $2K but I guess the market will tell if it is priced correct or not.
Also is this a two piece bonded frame or true monocoque? Everything I was told up to now was that it was two piece ala Talon. From "triathletemag.com"...
It has a similar design featuring the absentee seat tube, which will provide a nice, cushy ride for the long days along with the inherent comfort that comes from Kestrel’s use of monocoque carbon fiber.
Thoughts?
My first thought is that this frameset is over-priced. The cat is out of the bag and everyone knows the new KM40 is made in China. The price just doesn't figure then.
My second thought is that my next triathlon bike will be a custom frame by Yaqui, Guru, or Orbea, for the same or less than Kestrel is asking for their new KM40.
I'm not sure I get the correlation between country of manufacture and price. To me price = value, and if the bike is better than other bikes in it's price range it's a good value. If it's not, then it's not a value, regardless of country of origin or the margin the manufacturer is making. The new KM40 seems to address most of the criticisms of the original KM40, which is regarded as a darn fine tri bike in it's own right. Why should I be put off because Kestrel can make a better margin on this bike? To put it another way, let's say I'm comparing the new KM40 to another fictitious bike that is the equal of the KM40 in every way- features, quality, price, except it's made in the US and the manufacturer makes 1/4 the margin on this bike that Kestrel would make on the KM40. Should I consider this a selling point for some reason? A good margin tells me that the mfgr knows how to run their business and will be around a few years from now to back up the product.
True - but I feel that while Triathletes are generous in their spending on equipment, the manufactures have a responsibility to not gouge the public. I think a healthy margin is perfectly acceptable, and who knows - perhaps through wind-tunnel testing, R&D and other costs we're not thinking about, their margin isn't that high. If they're placing this product as a "luxury" item and don't want to dilute that image, that is another thing. But if these guys have such a fat margin - just think about what their market penetration would be if they dropped the price $400. They'd probably make up the difference with volume. Then again... maybe not - and that's why they priced it where they did.
So basically - I've said nothing.... :)
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Animal!!!
I work for a tech company in Nor Cal and I can tell you from experience that moving production to Asia (especially China or Taiwan) saves you at least 75% in labor costs. Not to mention lax environmental controls. Hey, if they can sell lot's of these bikes at $2250/frameset then I guess I tip my hat to them but think how many they could sell at a slightly lower margin. There are a hell of a lot of choices out there these days. Why not try to grab some market share while still maintaining the margins you had with US production?
Oh well, I guess Kestrel does not need my advise. They seem to be doing ok so far.