I'm probably being a bike industry apologist when I say this, but I think maybe you don't appreciate how complex some of the parts and materials used in bikes are. The quality of the manufacturing and materials is outstanding. Also, the bike company doing research and development to design a frame, prescribe a carbon layup for that frame, service and warranty that frame, and distribute that frame is only going to sell 4-figure and sometimes 5-figure numbers of those frames on complete bikes.
My general understanding of the economics on the product side of the bike business (which isn't as deep as my understanding of the retail side) is that the manufacturers aren't making much money either. They've got lots of hands in their pockets, a lot of pricing pressure thinning margins, and a low barrier of entry for new competition in the marketplace.
In regards to Chain Wiggle, I'm not surprised they are struggling. The graveyard is full of businesses that won on price and their is no business strategy easier to emulate than being the price leader.
Seems to be the business is design, go to china and find a manufacturer. I found these videos about china bike show interesting. "Specialized" gave the keynote apparently.
Some crazy bikes there (I like the offcenter wheels for hop riding.). Also very high end road bikes. (though italian carbon fiber seats).
My general understanding of the economics on the product side of the bike business (which isn't as deep as my understanding of the retail side) is that the manufacturers aren't making much money either. They've got lots of hands in their pockets, a lot of pricing pressure thinning margins, and a low barrier of entry for new competition in the marketplace.
In regards to Chain Wiggle, I'm not surprised they are struggling. The graveyard is full of businesses that won on price and their is no business strategy easier to emulate than being the price leader.