why are motorcycle wheels more expensive than car wheels?
Grand HDF Member
Joined: May 2008
Posts: 4,585
Likes: 673
From: Rolla
Better than a theory - I have an answer.
There is an initial cost to a product - R&D, design, tooling, etc.
(we;ll use $10,000)
There are the associated costs to market and sell the product.
(We'll use $8,000)
These first two costs don't change significantly based on number of units manufactured or sold.
There are manufacturing costs.
(Use $200)
The goal is to make a profit.
(say, we need to make $100 per wheel to stay in business)
The price of one wheel would need to be $18,300, if you would only sell one.
However, if you sell 100,000 wheels, the price per wheel would be $300.18.
The further you spread that $18,000, the less impact it has on price.
The market for motorcycles and motorcycle parts is small. Models change frequently and rarely do parts fit a number of different models, for a number of years. There isn't much room to spread out those initial setup fees. A motorcycle wheel manufacturer might sell 1,000 wheels. By comparison, and automotive wheel manufacture might make and sell the same wheel for years, or even decades, and sell tens of thousands per year.
There is an initial cost to a product - R&D, design, tooling, etc.
(we;ll use $10,000)
There are the associated costs to market and sell the product.
(We'll use $8,000)
These first two costs don't change significantly based on number of units manufactured or sold.
There are manufacturing costs.
(Use $200)
The goal is to make a profit.
(say, we need to make $100 per wheel to stay in business)
The price of one wheel would need to be $18,300, if you would only sell one.
However, if you sell 100,000 wheels, the price per wheel would be $300.18.
The further you spread that $18,000, the less impact it has on price.
The market for motorcycles and motorcycle parts is small. Models change frequently and rarely do parts fit a number of different models, for a number of years. There isn't much room to spread out those initial setup fees. A motorcycle wheel manufacturer might sell 1,000 wheels. By comparison, and automotive wheel manufacture might make and sell the same wheel for years, or even decades, and sell tens of thousands per year.
Here is somebody that knows a little about economics and manufacturing.
Cruiser
Joined: Jun 2008
Posts: 170
Likes: 0
From: Dallas, Texas
Because people are willing to pay more money for their toys. I have a friend that is in the auto body business and he told me that he charges the same amount of money to paint a bike as he would to paint some ones car. He told me he gets the money because people are more willing to pay more money for their toys.
Road Master
Joined: May 2007
Posts: 882
Likes: 0
From: Milwaukee, WI
The engineering costs MidnitEvil is referring to are often called NRE (Non-Recurring Engineering) cost. This is a one time cost to design and develop the product.
The bottom line is that the product(s) have to absorb all the costs and then sell for enough to make a profit. And costs usually decrease with high volume.
The bottom line is that the product(s) have to absorb all the costs and then sell for enough to make a profit. And costs usually decrease with high volume.
Ultimate HDF Member
Joined: Aug 2008
Posts: 6,235
Likes: 65
From: Joliet, Illinois
Because people are willing to pay more money for their toys. I have a friend that is in the auto body business and he told me that he charges the same amount of money to paint a bike as he would to paint some ones car. He told me he gets the money because people are more willing to pay more money for their toys.
The engineering costs MidnitEvil is referring to are often called NRE (Non-Recurring Engineering) cost. This is a one time cost to design and develop the product.
The bottom line is that the product(s) have to absorb all the costs and then sell for enough to make a profit. And costs usually decrease with high volume.
The bottom line is that the product(s) have to absorb all the costs and then sell for enough to make a profit. And costs usually decrease with high volume.
Additionally, on certain products, there can be a setup fee and other associated recurring costs with each manufacturing run. For example; I used to sell solder. On wire solder, there was a flat $200 setup fee to run a solder order. 60/40 solder was running about $3.05 back then.
If someone ordered one pound of solder, the price would be $203.05 per pound.
$200 + ($3.05 x 1)
If they ordered 1,000 pounds of solder, the price would be $3.25 per pound ((3.05 x 1,000) + $200)/1,000)
It is likely, with wheels and other hard parts, the manufacturers incur similar type costs when they reset their equipment to run different styles or variations of their products.
Last edited by ChickinOnaChain; Aug 20, 2015 at 09:45 AM.
HD Forum Stories
The Best of Harley-Davidson for Lifelong Riders
8 Best Harley-Davidson Motorcycles Ever
Pouria Savadkouei
10 Worst Harley-Davidson Motorcycles Ever
Pouria Savadkouei
Killer Custom's Jail Break Is The Breakout That Refused to Blend In
Verdad Gallardo
Crazy Bunderbike Build Looks Amazing, But Is It Impossible to Ride?
Verdad Gallardo
Harley-Davidson Reveals Super Cool Cafe Racer Concept
Verdad Gallardo
Engraved Rebellion: Inside Bundnerbike's Glam Rock II
Verdad Gallardo
10 Motorcycles You Should Never Buy
Joe Kucinski
10 Things Harley-Davidson Needs to Fix in 2026
Verdad Gallardo
