Only Rich Kids Buy $5,000 Mountain Bikes

©1997-2001, may not be reproduced or distributed without permission

The Premise

One day you are ambling down Main Street and you start thinking back to those childhood days when you had not a care in the world. It seemed like back then your biggest concern was keeping your Pez dispenser full and your best friend was your Schwinn Cruiser. What you wouldn't give to have that baby back. It was red and white, dripping in chrome, vinyl banana peel seat and that cool three-speed shifter. As you are walking along you notice a bicycle shop and decide that it might be nice to have a modern day Schwinn Cruiser. You decide to step in and look. What you see blows your mind! There are bikes in here with shocks and more gadgets than a Lincoln Continental. And check out the sticker on these things. The cheapest one is $189. There is the Super Deluxe model over in the corner. The price on it says $4999, and it doesn't have an engine. I hope that price is negotiable. As you are leaving the shop in udder amazement, you ponder the new world order in the bicycle market and come to the conclusion that "Only Rich Kids Buy $5000 Mountain Bikes!"

The Project

This study will hopefully help to shed some light on who is the typical purchaser of different price categories of mountain bikes. It only considers mountain bikes and thus excludes any other kind of road bike, hybrid, or other recreational equipment. The study uses three main sources for the research..

• First, 16 mountain bike riders were interviewed about there equipment choices, riding abilities, financial situation, and level of interest in mountain biking. Over half of these interviews were conducted on the trail. During these interviews actual observation was also used to asses riding ability and equipment choice.
• Second, the media was consulted to asses the prevailing views on different equipment. These sources included Mountain Bike Magazine, Men's Journal, Bike Magazine, Dirt Rag Magazine, Plush Magazine, Gearhead Magazine, and The Fat Tire Journal.
• Third, several bike shops in Chapel Hill and Carrboro, North Carolina were consulted. At these shops knowledgeable store personnel were sought out and consulted. These personnel included Andy at Franklin Street Cycles, Ed, Jesse and John at Performance Bike Shop, and Scott at The Clean Machine.

The Classification

In order to decide who buys different price categories of mountain bikes, it is first necessary to define the categories of mountain bikes. From talking with personnel at the above mention stores, it seems that three categories are fairly standard within the mountain bike industry. These include low, mid, and high end bikes. The following are example of different bikes which fall into each category:

Low-End $100-$399

• Specialized Hardrock ($169 at Performance Bike Shop)
• Cignol Ranger ($189 at The Clean Machine)
• Specialized Hard Rock Classic ($299 at Franklin Street Cycles)
• Trek 820 ($299 at Franklin Street Cycles)
• Trek 850($399 at Franklin Street Cycles)

Mid-Range $400-$999

• Specialized Rockhopper ($424 at Franklin Street Cycles)
• Gary Fisher Hoo Koo E Doo ($569 at The Clean Machine)
• Specialized Rockhopper FS ($649-749 at Franklin Street Cycles)
• Specialized Ground Control FS ($749 at Franklin Street Cycles)
• GT Tequestra ($999 at The Clean Machine)

High-End $1,000-Unlimited

• Proflex 756 Aluminum full suspension ($1399 at Franklin Street Cycles)
• Trek 8500ZX SHX ($1399 at Franklin Street Cycles)
• Sprecialized Stumpjumper M2 Comp ($1499 at Performance Bike Shop)
• Cannondale Super V 900 ($1599 at The Clean Machine)
• Trek 9800 SHX ($1899 at Franklin Street Cycles)
• Trek Y33 ($3199 at Franklin Street Cycles)

The Results

From this tripartite research several conclusions can be gleaned. These findings were used to generate the profiles in the next section

• Mountain bike ownership is evenly distributed between males and females until you get to the high-end bikes. In this category, over 90% are male (Source: Andy at Franklin Street Cycles).
• Around 90% of National Off Road Biking Association Members are male (Source: USA Cycling Membership Demographics). This organization, NORBA, constitutes the racing population.
• 90% of midrange-bikes are bought by people within the ages of 17 and 23 (Andy at Franklin Street Cycles).
• Older people generally buy low-end bikes (Source: Andy at Franklin Street Cycles). This may be because they want to do something they did when they were kids (Source: Scott at The Clean Machine).
• Many times, the bike a person purchases has nothing to do with money. It is not dependent on discretionary income. It has to do with how into the sport the person is (Source: Ed at Performance Bike Shop). For an example of marketing which uses this fact see Specialized's web page or their 1997 product catalog
• Conversely, people with nicer bikes are generally not better, they are just more into it (Source: John at Performance bike Shop) (Source: Chris, Mike, and Jesse who were interviewed while riding in Chapel Hill, NC ).
• Sometimes people buy higher priced bikes because they perceive it as higher quality (Source: John at Performance Bike Shop). For an example of marketing which targets this consumer see Trek's web page or their 1997 product catalog.
• The decision to purchase a bike also depends on the quality of the sales person (Source: Ed at Performance Bike Shop).
• Many times the bike a person buys depends on what they think they need to be cool. It is a status thing (Source: Scott at The Clean Machine).
• There is a segment of high-end bike owners who are young professionals. These are doctors and lawyers who do not ride very much, but want the best money can buy when they do (Source: Jesse, Coach of junior race team and National Off Road Biking Association Official).
• There is a small, but active, segment of the market which is mainly concerned with the features of the mountain bike. The people are more concerned with how much the bike weighs and how much suspension travel it has that they forget about actually riding (Source: Eric, and avid recreation rider encountered on a course in Cabarrus County, North Carolina).
• Some consumers, particularly middle aged or older people, but bikes for fitness purposes. These are usually low-end to mid-range machines (Source: Scott at The Clean Machine).
• The average price paid for a bike is $375 (Source: Scott at The Clean Machine).

The Profiles

The following profiles are actual people which I feel represent certain categories of mountain bike owners. These are actual people. However, their last names have not been used to protect their privacy.

Nicole

Mountain Bike: Specialized Sport Rock

Classification: Low-End

Purchase Price: $189

Primary Use of Bike: Commuting to classes

Frequency of Use: Rarely

Skill Level: Low

Characteristics

• Most likely female
• Between the ages of 18 and 24
• First and only bike owned since childhood
• Thought they would use it more than they do
• Bike was purchase by parent of friend as a gift
• Does not know a low-end bike from a high-end bike.

Bob

Mountain Bike: Trek 830

Classification: Low-end

Purchase Price: $350

Primary Use of Bike: Exercise on pavement and well-manicured trails or parks

Frequency of Use: Regularly

Skill Level: Low

Characteristics

• Most likely male
• Between 30 and 45
• First and only bike owned since childhood
• Primary goal for riding is to stay healthy
• May be riding a bike by order of doctor or loved one
• Bike was purchase by themselves
• Knows a low-end form a high-end bike only because they shopped to buy this one
• Quality and value are important influences an bike purchase

Todd

Mountain Bike: Cignal Montero

Classification: Mid-range

Purchase Price: $400

Primary Use of Bike: Trail riding for recreation

Frequency of Use: Occasionally

Skill Level: Moderate]

Characteristics

• Most likely Male
• Probably first bike since childhood
• Bought bike as a commuter but found out he likes to trail ride
• Can tell a high-end from a low-end bike
• Aspires to own a high-end machine
• May occasionally read mountain bike publications
• Focus on biking is to have fun
• Does not take mountain biking seriously as a sport
• Price and value conscious

Andy

Mountain Bike: Trek 9800

Classification: High-end

Purchase Price: $1,899

Primary Use of Bike: Trail riding

Frequency of Use: Frequently

Skill Level: High

Characteristics

• Almost exclusively male
• Second bike, his first was bought as a commuter
• Rides for enjoyment primarily, but improving his skills is important
• Can tell a high-end bike from a low-end
• Subscribes to mountain bike publications and receives several biking catalogs
• Rides with a group of dedicated riders like himself

Eric

Mountain Bike: Proflex 756 Aluminum full suspension

Classification: High-end

Purchase Price: $1,399, but over $3,000 invested

Primary Use of Bike: Hobby

Frequency of Use: Occasionally

Skill Level: Moderate

Characteristics

• Almost exclusively male
• Has owned over 3 bikes since he started riding
• Spends more time working on his bike as riding it
• Constantly evaluating his bikes performance and thinking of ways to improve it
• Subscribes to mountain bike publications and receives all the biking catalogs
• Very concerned with the features and specifications of a bike
• Can identify the make, model, and year of a bike from 100 yards
• On a first name basis with the employees of multiple bike shops
• Usually rides alone
• referred to as a "Techno Geek" by other serious riders

Jesse

Mountain Bike: Giant frame with piece-meal components

Classification: Low-end

Purchase Price: ???, less than $150 invested

Primary Use of Bike: Trail riding

Frequency of Use: Very often, almost daily

Skill Level: High

Characteristics

• Almost exclusively male
• Has owned over 15 bikes since he started riding
• Lifestyle mountain bike rider
• Active in the politics of mountain biking
• Thinks of mountain biking as a sport just like soccer or baseball
• Rides road bikes as well
• Thinks of his bike as a tool
• Subscribes to several mountain bike magazines and catalogs
• Very loyal to his bike, against radical change
• Close relationship with a bike shop, probably an employee
• Member of a mountain bike club
• Has raced or coached in the past
• NORBA member

Dax

Mountain Bike: Trek Y22

Classification: High-end

Purchase Price: $1,799

Primary Use of Bike: Trail riding

Frequency of Use: Very often, almost daily

Skill Level: High

Characteristics

• Almost exclusively male
• Has owned over 3 bikes since he started riding
• Lifestyle mountain bike rider
• Constantly evaluating his performance and thinking of ways to improve it
• Thinks of his bike as a tool
• Subscribes to several mountain bike magazines
• Very loyal to his bike, against radical change
• Close relationship with a bike shop, on a first name basis with one mechanic, but doesn't know the owner
• Member of a mountain bike club
• Usually rides alone
• Feel of the bike is more important to him than anything which can be put down on paper
• Aspires to be a pro racer, probably a NORBA member

Jeff

Mountain Bike: Trek Y33

Classification: High-end

Purchase Price: $3,199

Primary Use of Bike: Trail riding

Frequency of Use: Rarely

Skill Level: Low to Moderate

Characteristics

• Almost exclusively male
• First or second bike since childhood
• rarely has time to use his bike
• Thinks his performance is largely due to his equipment
• Thinks of his bike as a symbol of his ability
• Bought the bike without shopping much, just thought it was cool
• Maintains a high income job

Tinker

Mountain Bike: Specialized Ground Control

Classification: High-end

Purchase Price: ???, Custom made

Primary Use of Bike: Racing

Frequency of Use: Multiple times a day

Skill Level: High

Characteristics

• Almost exclusively male
• Has owned over 20 bikes since he started riding
• Lifestyle mountain bike racer
• Constantly evaluating his performance and thinking of ways to improve it
• Thinks of his bike as a tool
• Subscribes to several mountain bike magazines
• Will ride whatever his sponsor gives him as long as it fits
• Very close relationship to other racers
• Member of a mountain bike team
• NORBA member

The Conclusion

So, do you still think that "Only Rich Kids Buy $5000 Mountain Bikes?" I hope this information has dispelled this rumor. Many high-end bike owners do have a high discretionary income. However, this is not always the case. As this research shows, the decision to purchase a certain bike is dependent on much more than money. On one hand we are presented with Jesse who is a very skilled rider, but rides a $150 bike. On the other, we see Jeff and Eric who are mediocre riders an d have over $3,000 dollars invested in their bike.

I hope this project has improved your understanding of the dynamics of the mountain bike market. These conclusion are the result of a couple years of personal experience and the input of many other sources. However, it is by no means conclusive. Just remember the next time you see that fellow riding a Cannondale Super V 900 or a Trek Y33, that they may not be the rich kid you expected! (If you could identify these bikes you are probably a Techno Geek. 

©1997-2001, may not be reproduced or distributed without permission