# Price of S2 in Ultegra vs Rival



## deviousalex (Aug 18, 2010)

Can someone explain why the S2 costs $800 more in Shimano Ultegra versus SRAM Rival? From what I've seen around the net the difference if you just buy the groups is not that much. Also, Cervelo buying them in quantity gets a better discount.


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## Vee (Jun 17, 2010)

Rival vs Ultegra is not a proper comparison. Rival is the 105 Equivalent. Force is the Ultegra Equivalent. The reason these two bkes have an $800 dollar price difference is simple. Rival groups cost around $750, while Ultegra groups cost around $1250. I understand that doesn't exactly add up to 800 dollars difference, but that's how it goes.


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## deviousalex (Aug 18, 2010)

I wasn't comparing Rival to Ultegra on the Shimano/SRAM equivalent. I was pointing out what you said in the second part of your post, that the difference in the groups is not $800.
You state the reason is 'simple', yet you just take it as 'but that's how it goes'.


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## Vee (Jun 17, 2010)

Haha, after reading my post you are correct. I didn't quite make sense. What I should have typed was that while the price difference in groups is less than the price difference in bikes, I do not think one can expect those prices to always coincide. There could be other factors in regards to costs on Cervelo's end, or they may just have decided that the Shimano build was worth charging the extra money for. The price of bikes is not always directly related to the cost of materials. For example, I would be willing to bet that the S2 and S3 frames cost very close to the same amount to manufacture.


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## deviousalex (Aug 18, 2010)

Vee said:


> For example, I would be willing to bet that the S2 and S3 frames cost very close to the same amount to manufacture.


Probably, but Cervelo (hopefully) put in a huge amount of research into making the S3 and they need a return on investment on that research. Hence the price difference. This is probably the same for Shimano with Dura-Ace vs. Ultegra which warrants their price differences.
But with groupsets here Cervelo made no research investment into these things that go in the end product, hence they should not charge the customer more than the street price for the upgrade.


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## tdietz87 (Apr 19, 2011)

deviousalex said:


> Probably, but Cervelo (hopefully) put in a huge amount of research into making the S3 and they need a return on investment on that research. Hence the price difference. This is probably the same for Shimano with Dura-Ace vs. Ultegra which warrants their price differences.
> But with groupsets here Cervelo made no research investment into these things that go in the end product, hence they should not charge the customer more than the street price for the upgrade.


I agree, this doesn't seem to really make much sense at all, unless there are other upgrades that aren't taken into factor. Especially when Rival really compares with Ultegra in regards to weight.


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