Message from discussion Typical decent Al Bicycle diamond frame costs $8 to make in Taiwan

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Date: Mon, 05 Dec 2005 19:55:47 -0800
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Subject: Re: Typical decent Al Bicycle diamond frame costs $8 to make in Taiwan
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Luke wrote:
> This from Sheldon Brown's Bentride Podcast (@ 8:50). No wonder
> manufacturing is a declining sector in North America! This can't be the
> total cost of production (stock and labor); does the figure apply to
> labor cost only?

It's quite possible that $8 is the cost of an aluminum frame. Aluminum 
is extremely inexpensive (why do you think the bicycle manufacturers are 
using it?!). Look how cosmetically poor the welds are--no effort is put 
into filing them. Welding seven or eight pieces of aluminum tubing 
together is not a long or expensive process.

I think the real question is what is the ROI, including the cost of the 
equipment and factory.