Why Are Electric Bikes So Pricey?
Electric bikes are expensive; likely more expensive than the ordinary individual would anticipate. Since the golden age of Schwinn and the traditional six-speed, bicycles have advanced significantly. The engineering of a classic bicycle is intricate even without a motor and batteries. This engineering requires time and money, probably much more than the average person would anticipate. Which might account for some of the sticker shocks that many first-time e-bike buyers encounter.
This article will provide some explanations of current e-bike prices in an effort to help you better understand them. What you’re getting for your money when you do decide to buy a new bike. We’ll attempt to examine this from two angles. Why they are generally expensive and why they have recently become even more expensive though it is not comprehensive?
It Costs A Lot To Buy Motors And Batteries Of Electric Bike
The longevity of your e-bike will also be influenced by the battery to some extent. Depending on how they are used and cared for High-quality lithium-ion batteries. The most common type found in e-bikes typically lasts between two and four years.
By using a particularly built battery management system or carefully hardening it against the environment. More expensive batteries are frequently designed to give the cells inside their best chance at the longest lifespan. This special attention may not have been given to cheaper batteries.
Even the least expensive motors can cost several hundred dollars. Making them another expensive technical piece. The most popular and cost-effective e-bike drive system is the hub motor, whereas mid-drive motors are typically the most expensive.
Regarding motor quality, the various types, and what that means for the consumer, I could write an entire series of posts, but that’s a subject for another time.
When you combine those parts with the price of any necessary electrical engineering, testing, and programming, as well as the price of a warranty and customer service program — which, for some businesses, can be significant — you end up with a significant price premium over a traditional bicycle.
E-Bike With Higher-Quality Components Cost More Money.
The price of those components can vary greatly, which accounts for a significant portion of why the average cost of an electric bike ranges from just under $1,000 on the low end to a very high end of $15,000.
Some people find that a $1,000 e-bike completely satisfies their demands, but for others, their financial situation and level of cycling enthusiasm may be sufficient to warrant purchasing a bike that is far more expensive. Everything just depends on how you plan to use and utilize your e-bike.
The price of an electric bike can be increased by a number of factors, including brakes, wheels, drivetrains, and frame materials.
The cost of performance parts utilized by racers and enthusiasts will typically be higher than that of commuters and weekend warriors.
There is such a thing as going too cheap, however inexpensive components are not always terrible components. Even though purchasing an electric bike with really cheap components may save you money upfront. You’ll probably end up paying more in the long term. Cheap parts frequently come without warranties or customer service, and they are typically more fragile than their expensive counterparts.
I am well aware of the potential financial hardship that the cost of an e-bike can cause. But deals that appear too good to be true should be avoided. When it comes to pricing, brands have limited options; the cost is mostly determined by the componentry they select and the type of frame they use.
There’s a good chance the price of an outlier that seems absurdly cheaper than its rivals is so low because they’ve found a way to economize.
Cheaper Electric Bicycles Will Eventually Appear, But Don’t Hold Your Breath.
First, the good news: As the technology develops and becomes more widely accessible, the price of e-bikes and e-bike componentry will eventually go down.
In addition, a number of countries throughout the world have implemented incentives to defray the cost of e-bike ownership, and many others are expected to follow. Even if e-bike prices are slow to decline, there is hopefully financial assistance on the way thanks to a proposed tax credit here in the United States that could reduce the price of a new e-bike by up to 30%.
Here’s the depressing news: Don’t hold your breath waiting for e-bike pricing to drop any time soon. Actually, prepare for them to rise.
Deloitte predicts that over the next few years, e-bikes will be the most popular electric vehicle on the market, selling more than 130 million units worldwide between 2020 and 2023. The demand for e-bikes is at an all-time high, and the still-young e-bike industry is struggling to keep up.
It’s never been harder to find an e-bike because of COVID-19’s significant effects, which led to a worldwide shortage of bicycle parts (which is still present today) and increased demand for e-bikes.
Many electric bike manufacturers, including expensive and inexpensive models, have already raised their pricing. Costs haven’t yet started to rise in the way that most customers would prefer. Even though the hikes so far haven’t been too drastic. We’ve typically seen them rise by one or two hundred dollars on average from businesses like Rad Power Bikes (down).
The increased sticker price on e-bikes makes sense the more you look into the parts shortage and rising demand.
“(Richard Thorpe, the CEO of Karbon Kenetics) said he is moving forward with price increases for 2020. Because he doesn’t anticipate these supply-chain problems to get significantly better. He calculates that because of fierce rivalry among manufacturers for the same parts. The cost of making a single bike for the company has increased by 20% to 25% compared to the cost before the epidemic.”
The cost of seatposts has increased by 20% over the past 12 months. Prices for the cranks that the rider uses to pedal have also increased. Handlebars are up 11%. Levers and calipers for brakes are up 14%. According to Karbon Kinetics, reflector prices are up 50% and chains are up 17%.
Demand will eventually return to normal, the components shortage will end, and manufacturers will be able to catch up. However, be prepared for that to take some time. Since several of the biggest component manufacturers in the world are claiming lead times of up to a year for new parts. It is likely that e-bikes and their components will remain in limited supply for a considerable amount of time.
Read more: The Electric Bike Shop in Calgary You Didn’t Know You Needed