Bike prices up and why

[Kernow]

Lots of discussion about price rises and shortage of bikes and bits
Good article here on bike radar explaining reasons for some of the price rises on all brands , more complicated than anyone would have thought in some ways

Pandemic vs Brexit – why have bikes got more expensive and harder to find?

Bike prices have rocketed, as have waiting times. More positively, so have cyclist numbers. We investigate the state of affairs (including unpicking the impact of the trade agreement)

www.bikeradar.com

 

[Mikerb]

I had seen that article previously and it does seem to cover the situation more comprehensively than most. It is worth remembering that these are all pretty small companies, and/or companies with small percentages of their business as export. As far as Brexit is concerned the UK left the EU a year ago and Dec 30 2020 was the end of the transition period. There were only 2 possible outcomes of Brexit discussions therefore as from January 1st 2021. A trade deal or no trade deal and a reversion to WTO terms.
The change due to take place in terms of trade between the EU and UK has therefore been known for at least a year, the only potential variation being whether WTO tariffs were applied or zero tariffs. You could perhaps forgive smaller companies for not understanding Rules of Origin* but any company exporting other than only within the Single Market would already be aware of that. The other change was the management of VAT...specifically the addition of VAT at point of sale, but not at the customs border, for complete shipments under £135 in value. That is however originally an EU regulation, implemented from January 1st 2021 by the UK, but delayed until June for implementation by the EU. So none of that should have been a change that was not planned for, assuming these companies have accountants or finance directors, for whom all of this is basic to their roles.

* note also that the only rationale for insistence of rules of origin within a trade deal is to ensure trade barriers/tariffs are maintained for goods originating from a country with whom you do not have a reciprocal trade deal. The EU insisted on rules of origin to protect its single market. The UK wants to abolish rules of origin and plans to push for that as it it takes the Chair of the WTO. ROI makes no sense in a global market. The way bikes are assembled is one example...but only a small market. Car manufacture is far bigger and has the same component assembly situation as bikes. Car manufacture was exempted from ROI in the UK//EU trade deal. I wonder why?

 

[Rusty]

Sales of all bikes are up and e-bikes especially so due to covid stopping a lot of people from doing their usualy gym workout.
What does not surprise me is that prices have not come down. Looking back at several past trends when there has been a boom in cycle sales, prices also went up then too in my mind so I had a chat with a couple friends that own shops - they confirm this.

 

[Waynemarlow]

It’s called “supply and demand”

 

[jerry]

My dealer has been notified by his big brands of increased pricing - also retroactively on ordered stock. Citing supply issues - but even more importantly - shipping. Pricing for container shipping went up by a factor of 4 - 10, depending on origin/destination. Not looking good!

 

[7869hodgy]

It’s called “supply and demand”

Prices always go up year on year. I bought a Trek EX9.8 10 years ago for £3k. The same bike will cost circa. £5.5k-£6k now.....without a motor.

I was looking at a Cannondale Scalpel for the summer. If you want a decent, but not top, spec. £5499

I think e-bikes offer pretty good value for money.

 

[Zimmerframe]

Funny. Canyon can still sell a high end bike for reasonable money. The big boys are just making bank with excuses.

They're still a DTC brand so have lower overheads.

Also, don't forget that Canyon's core business is actually buying bike parts in bulk from manufacturers to get economies of scale and re-selling them onto other manufacturers. They're effectively a huge distributor who also make some bikes of their own. So they benefit from much lower purchase prices than others and in turn benefit from the profit from supplying other companies.

Basically, if you buy a different bike, you're probably subsidising someone's Canyon

 

[Zimmerframe]

You could be right on that one but i think we are talking about Specialized here and i bet they buy direct. Even so the shipping excuses should affect everyone equally and shipping rates are shipping rates even the big boys are tiny in that market.

Maybe ... but I just tried to buy a Canyon ..

In France :

In the UK :

So they give parity on the exchange rate to cover some of their costs (effectively charging you 15%) .. But then it wouldn't let me deliver to the UK anyway - even though the delivery date is not until late May.

I'l let you know what it's like then.

 

[Zimmerframe]

Bit confused.
Can someone point me to this mythical time when prices didn't go up?

Most members still remember the good old days of the 1930's !

Great Depression - Wikipedia

en.wikipedia.org

 

[Zimmerframe]

Stop thinking .. relax and watch this .. just airing now ..

 

[The EMF]

Supply and demand indeed.......gonna buy an extra lock and chain for my cherished ride ?

 

[memtb]

They must all be furoughed off work with no pay in the far east at the moment. Obviously they want to work and earn money so
thats not permenant.
I can see the whole battery/motor area being like a groupset . Maybe it already is. If we get through this pandemic era they will ramp up production and prices will fall.
Most bike makes are just a logo on the frame they made and everything else seems to be brought in.
Why would an emtb energy groupset be more that $500 in the future?
You could buy a goodish non emtb full suss mtb for $1200. Dunno about currently due to shortages.
If you need it now pay up but im in no rush to stop riding my light agile non ebike mtb and fully expect there to be a good $1500 option emtb
in a year or two.
Its only the climbing hills bit where it matters to most anyway. I can still generally do that bit if I ride often.
I cant believe someone young,fit and agile needs one. I guess I will grow into it about the same time the price meets my expectations.

 

[Al Boneta]

Sales of all bikes are up and e-bikes especially so due to covid stopping a lot of people from doing their usualy gym workout.
What does not surprise me is that prices have not come down. Looking back at several past trends when there has been a boom in cycle sales, prices also went up then too in my mind so I had a chat with a couple friends that own shops - they confirm this.

Prices haven’t come down because costs have gone up.