I admire the desire for sure .... but I am scratching my head ... 

First .... even if that can build a prototype for $1400 .... the real bike 
will be more like $1600-1800. I base this on the their history of 
introducing frames at a price but they go up very quickly.  Look at the 
Atlantis and Bombadil for example .... lol.  I know nothing of the 
economics of pricing a frame and labor costs and all that .... but from 
what I've seen Riv frames have increased substantially compared to any 
other steel frames over the last 10 years.  Myself it doesn't matter where 
they are made and don't care for the argument of why it costs more to be 
built wherever.  Just ask what you want for the frames and be proud of it , 
however you want to do it. No need to justify it. Those that are happy to 
pay will do so. 

Second.  Compete with the LHT ?  That's a very tough sell.  Most people 
don't know what a lug is, let alone prefer them !  While I like lugs too, 
I'd have no qualms over buying a frame without them well.  Lugs are not 
infallible ... the workmanship is what matters most... to me.  You also 
have the Surly name .... brand name matters ... like it or not.  When you 
say Surly .... some people react like in the 70's with a Beetle .... "AWW 
.... I want one too :) " .... just because it's perceived as something 
special.

Third, Parts.  A less expensive crankset is needed.  Taiwan has some decent 
ones... Andel brand comes to mind. That's what Surly uses on many of their 
bikes now in doubles and triples.
Wheels would have to be machine built of course ... but they *can* be good, 
it just depends on the machine I suppose. Cheaper Kalloy seatposts ...  
saddles .. stems ....bars ... all would be in the cards. 


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