Is this the Beginning of the end of Boutique 29er sales? Part 2
Yesterday I compared the bike industry to the automobile industry particularly in the realm of the 29ers. I made the argument that different bike manufacturers are equivalent to different auto manufacturers. And just as there are different automobile manufacturers, there will be different bike makers because consumers don’t always want products from the mega manufacturers.
Today, I wanted to share an interesting process I’ve seen that benefits all parties involved, the mega manufacturers, boutique shop & the consumer. It goes like this:
A rider purchases a bike from a mega manufacturer. Since we’re talking about 29ers, we’ll have the manufacturer be a Gary Fisher. Most likely this is one of Gary Fisher’s higher end hardtail bikes. The rider then strips the bike of all its components (fork, headset, handlebars, cranks…) and then sells the frame through ebay, craigslist or the classified section of mtbr.com. In the meantime the rider purchases a frame from a boutique shop and applies the stripped components from the Gary Fisher towards the bike frame.
This multi-step process makes perfect sense if you have at least a $2,000 budget to work with. For example, after purchasing an X-Caliber for $1,100 or so, you strip the bike and sell the frame as brand new, never ridden for $200 – $300. You take the rest of your budget and invest in a frame only from a boutique shop and you use the parts from the X-Caliber on the new frame.
This swapping of parts can save you hundreds of dollars as long as you are willing to use those mega manufacturer parts on your boutique bike frame. And why not? The parts from the mega manufacturer bike are the same parts you would purchase through any local bike shop. A Shimano XT derailleur is the same if it comes off a mega manufacturer bike, from the boutique’s build kit or from a local bike shop. You’re just saving some money by purchasing your items as a package rather than paying for them individually.
This multi-step process is a win for all parties. The mega manufacturer sells a complete bike. The boutique gets a sale, a bike frame. And the consumer wins by getting a complete bike at a cost less than he would have paid had he bought straight from the boutique.