Road Bike Prices Rise are brands cashing in on the demand

[gmw492]

Obviously I’m not the only one to notice but bike prices have soared , Canyon, Trek , Giant , all have put £200- £500 more on certain models of their range.This is compared to only a few months back, and now due to the pandemic a lot have sold out, has the demand and availability put the leading manufacturers in pole position to exploit the customer, yes they are looking out for themselves but the hike is really bit harsh considering they were originally priced at a cost they were happy with. Question is does anyone think it’s justified and do you think they might be left with overpriced stock and may well have to drop the prices to make way for next years models (yes a good few months away yet) , I wanted a Trek emonda but it’s £500 more now when they come back in stock , so I just can’t bring myself to pay this out of principle, looks like upgrading my bike or play the waiting game , guess it’s how desperate we are

 

[vickster]

Weak sterling clearly contributing too.

Global shortage of stock, global high demand, I don‘t think UK prices will crash and used prices will stay strong too especially if we have decent spring and summer weather and continued lock downs.

Are Canyon even shopping to the UK now, and if they are, presumably with the extra customs fees on top?

 

[Dan77]

Several possible reasons for this.
Increased costs - Brexit involves transport difficulties and lots of paperwork. This has a cost. My Canyon was £3299 and is now £3699 but is still available for 3399 Euros when bought in Europe so it hasn't really gone up in price on that basis.
Simple supply and demand - the most obvious reason. There is more demand than supply so they can sell every bike they make for more money and therefore be more profitable as a business. I don't know why you wouldn't charge more money if you were still going to sell all your stock. It's just basic business sense.
There may be other increased costs. eg overtime, shift work, spacing people out for scoial distancing, etc but I suspect given the demand that these brands are still more profitable than they were pre-pandemic.
They have a big enough market to sell their stock outside of the UK in the short term and we've become a pain to service. It doesn't make business sense to ignore us but they can make us pay more for the hassle.

 

[gmw492]

Weak sterling clearly contributing too.

Global shortage of stock, global high demand, I don‘t think UK prices will crash and used prices will stay strong too especially if we have decent spring and summer weather and continued lock downs.

Are Canyon even shopping to the UK now, and if they are, presumably with the extra customs fees on top?

Yes Canyon still shipping , actually offered free shipping at one point but guess the price hike helps pay part of that, Rose have stopped shipping to UK now

 

[Drago]

Although sterling is a little higher against both the euro and the dollar thnt it was all last summer, so I dont think that's a legitimate excuse.

Some of it may be the new customs and taxation arrangements, although some retailers went out of their way to be prepared and have endifed very little disruption or cost increases to pass along, so it shows it can be done - that cant be an excuse either.

They're simply charging more because they think they can. There will come a poi t where theyre all left holding their winkies as the demand fails, but until then they'll milk it as much as they think they can.

 

[Lookrider]

Every product on the market is priced by the customer buying and is never overpriced as that would mean it stays on the market
Price on anything will only come down when customers stop paying the asking price
Businesses are in it for profit
We would all do the same
Think of your house ..most of us have sold a house sometime in tbe past ...I bet nobody accepted anything less than what the maximum was that you could achieve ...and that's a form of short term business all house owners are in ...all be it for maybe only a few weeks/months
Hopefully the guys on the shop floor will see the companies profits and next time they ask for a collective pay rise they will have all there figures in front of them for when there management claims poverty saying we cannot afford to pay you that !!

 

[Smokin Joe]

Every product on the market is priced by the customer buying and is never overpriced as that would mean it stays on the market
Price on anything will only come down when customers stop paying the asking price
Businesses are in it for profit
We would all do the same
Think of your house ..most of us have sold a house sometime in tbe past ...I bet nobody accepted anything less than what the maximum was that you could achieve ...and that's a form of short term business all house owners are in ...all be it for maybe only a few weeks/months
Hopefully the guys on the shop floor will see the companies profits and next time they ask for a collective pay rise they will have all there figures in front of them for when there management claims poverty saying we cannot afford to pay you that !!

^^This^^

If you sell for less than you can get you're either a saint or a mug.

 

[rogerzilla]

Brexit adds 14% due to the country of origin rules, probably more at the top end, which is less price-sensitive, and less at the entry level. There was a good explanation in The Comic two weeks ago. It's called taking back control, I think.

 

[NorthernDave]

I read somewhere last week that those "in the know" reckon it could be the middle of next year before supply and demand align again, so all the companies are doing is making hay while the sun shines - ultimately people must be paying these prices or they'd have to drop them.

Last time I was in Halfords they had hardly any bikes in stock and they're also now charging for the bike build, something that used to be "free".

 

[Joffey]

Brexit adds 14% due to the country of origin rules, probably more at the top end, which is less price-sensitive, and less at the entry level. There was a good explanation in The Comic two weeks ago. It's called taking back control, I think.

Aren't we paying VAT now on EU goods? I know that a £32 roll of bar tape is costing over £60 now from the EU as I checked this morning. I can't find Lizard Skins black camo 3.2 anywhere in the UK

 

[vickster]

Aren't we paying VAT now on EU goods? I know that a £32 roll of bar tape is costing over £60 now from the EU as I checked this morning. I can't find Lizard Skins black camo 3.2 anywhere in the UK

First world problem?

 

[Ming the Merciless]

Weak sterling clearly contributing too.

Sterling is at its best rate against the USD for almost 3 years. So American brands at least, should have come down in price.

 

[rogerzilla]

Aren't we paying VAT now on EU goods? I know that a £32 roll of bar tape is costing over £60 now from the EU as I checked this morning. I can't find Lizard Skins black camo 3.2 anywhere in the UK

It should be fairly neutral IF the seller charges you the price without German VAT, adds UK VAT instead and remits the UK VAT to HMRC under their nice new UK VAT registration. There should also be no admin charges on arrival.

In practice only eBay, Amazon and a handful of big sellers are bothering. So, more typically, you get charged German VAT, then the carrier adds UK VAT on top, plus a hefty admin fee.

 

[simon the viking]

An interesting side aspect to this is.... does it affect second hand prices The Propel 2 2021 is approaching double what I paid for my 2017 model new.. I'm not even remotely thinking of replacing it, not at these crazy prices, but what if I was took off, would the drivers insurance pay more up I reckon eighteen months ago I could of replaced it secondhand for around £700 now I reckon it would be back to almost what I paid due to supply and demand.

 

[Joffey]

First world problem?

Not really when Brexit was meant to give is the exact same trading relationship as we already had.