There are some brands of bicycles that can cost more than the down payment on a car. Why? Surely making a bike lightweight and reliable isn't so difficult that it warrants that price? Is it just the brand name or maybe it has to do with customization options?
While what a lot of people said is true, with R&D costs, economy of scale, and such, a lot of it is profit too. They make bank on those high end bikes. Then they spend a chunk of that bank to sponsor riders, races, and advertising, so that they can continue making bank. What really gets my goat is bike shops around here charging $198 an hour for super basic mechanics. Anyone with any sort of mechanical aptitude can work on bicycles. It's not rocket science.