The groupo illusion

Somewhere along the line in the mid 60's our friends at Campagnolo in Vicenza, Italy conceived the idea of a component group that would match in aesthetics, function mechanically in conjunction, and be sold as a complete package to bicycle frame manufactures for soon to be built bicycles.  This new idea coined the "groupo" changed consumer perception, distribution dynamics, marketing exploits and pricing variations in a completely new fashion.  Both bicycle and component sales would forever change beyond this point.

Fast forward

 Its June 6th, 2017 and the high-end Shimano Dura-Ace R9100 (mechanical 11 speed) group set trends at a whopping $1,800.  This parts kit includes the Bottom bracket/crank set, Brifters (brake and shifter combo), brakes, chain and cassette.  The Shimano 105 group set from this same year (also mechanical 11 speed) with the same parts package trends at $500.  For point of reference, in the higherarchey of the mechanical component groups Dura-Ace Ranks #1 while the 105 group ranks #3 with a price differential of roughly $1,300 - $1,400.  For the +/- 300% up charge one would have to imagine that the variation in quality would be roughly correlated as being threefold.  The fact of the matter is that the actual cost-benefit ratio when purchasing the Dura-Ace group over the 105 is no where close to the company's (and many others alike) attempted rationalization in price hike.  The big reason for this is that the big 3 (Shimano, Sram, and Campagnolo) do not hedge their status quo on the sales of their top tier groupos, but instead have a very focused sales effort that lies within the mid range of the barrel.  Shimano tiagra (the lowest in their groupo ranking) exists primarily for the same reason as Dura Ace does; to sell 105.  When it comes to squeezing the trigger on that Dura Ace upgrade you have been waiting so eagerly to make, you are in principle being duped by the big players in the component game.

Value perception

When races are being dominated by those running the newest, most lightweight and aerodynamic kit the marketplace has to offer, race fans and consumers will know it.  Through myriad adverts, those watching and listening are subjected on full blast to notion that the lightest, most race winning gear is what all of us would-be, weekend warrior hobbyists really need.  Though most of us can not, and never will be able to afford the en vogue, super kit of today, many of us can indeed jump into the "price point" gear of the component middle ground; and that is exactly the goal of the major component manufactures.

Though dating 2014, factor for slight inflation and this chart more or less represents today's groupo pricing standards

When juxtaposed perfectly between the lowest and highest end offerings, the value perception is the key to solidifying sales to on-the-fence, semi discerning consumers.  The perceived take away is that even though the mid level Shimano group set is heavier (ever so slightly), made using inferior alloys and materials (ever so slightly), and holds a lower resale value; when stacked up against something roughly 4 times the cost it indeed seem like a hell of a deal.  The Dura Ace (just like most quality hierarchies in marketing) stands as a component group that introduces technology that will inevitably be trickled down to the future years mid range stuff.  When you line up for the 2017 105 group, you are in practice getting that 2014 (ish) level quality that was standard to the Dura-Ace group of that year.  

a 5 step program to success!

Step 1: have pro level, race winning cyclists advertise the kit that "granted" them their prestigious victories.  Step 2: slap an astronomically high sticker price on the "pro level" gear.  Step 3: convince buyers that the "value oriented" lesser (though not bottom) level group sets carry with it technology of something close to the high end of today's standards.  Step 4: "modestly" price the aforementioned group sets in a way that seems like a massive comparative bargain.  Step 5: Repeat.

If In-da-rain can win tours on Campag so can you!

When it comes to outfitting your next road or mountain bike, please do your best to cut through the fluff that seems to permeate every corner of the industry.  Upgrading when necessary is the best way to get the most out of your not so inexpensive parts (especially if purchased new) and avoid more of the unnecessary waste with the "throw away" mentality that comes with the notion that your components are supposedly obsolete.  Asking yourself if an extra 500 grams will make the difference in your riding experience is something worth while.  If the time comes, entertaining the notion of "downgrading" to a lower line of components is also a clear way to save money while still getting what is often a very similar product to the "mid" level stuff.  There is always the discussion of buying used altogether, but I will save time here having written extensively about that in previous posts.  Just try to remember when you gear up for your post work ride that you are not chasing records and stage race podiums, but simply trying to enjoy the merits of riding while doing so in a affordable and reliable fashion.