Road Bike Prices Rise are brands cashing in on the demand

[gmw492]

Skipping past all the brexit talk.

My Trek Emonda went up £250 on the Trek website the day after I made my purchase. Most retailers went up over the next 2-3 days, including the seller I bought from.

Good timing on your purchase, there is an sl6 in stock but like I posted don’t want to pay the extra £500 than originally priced , enjoy the Emonda 😁

 

[MntnMan62]

I think multi millionaire companies like Giant, Trek, Canyon etc have probably made a buck or two already and yes they are cashing in on demand, I just wonder will it leave them with surplus stock due to pricing, the likes of Ribble (yes not in the same league as them) haven’t put their prices up on bike builds as of yet , I don’t think Cube and Specialized have altered their prices ( might have to check that) so will that push others to other brands for decent savings, I guess the waiting game will probably produce the most purchases I think, but the offers will then look a sale price as it will be “ £500 off, sale , buy now “ , but that will go to the original price they were first priced at anyway 😀, interesting to see how the next few months go, will it be ‘ sold out ‘ or ‘ more than 50 available ‘ on websites ,

I'm guessing that the increased prices you are seeeing are the retailers raising their prices rather than the manufacturers. The increased demand due to Covid came on suddenly and unexpectedly so it's the local LBS's that are probably benefiting from the higher demand. And with the increased demand inventories are way down. The only way manufacturers end up with unsold stock is if they ramp up manufacturing to keep pace with the increased Covid demand. I doubt they are, so I don't see them getting stuck with unsold inventory. Same with the LBS's. They all likely realize what is driving current demand and will anticipate demand going back to normal once our lives go back to normal.

 

[faster]

Hello @faster Apologies if you miss understood my reply. I 100% agree with your initial post. I was merely having a dig at those who instantly turned this into a Brexit problem or Brexit is the reason for the pricing because they generally turn everything into Brexit. If the cat dies, it’s because of Brexit

No worries - you're right. I did misunderstand your reply. I initially thought you were suggesting my post should be removed and that something was going on that I wasn't aware of.

 

[faster]

If they made it here I would buy it here.

I think you've missed the point.

They won't make it here, and nobody will buy things made here (not in any great volume anyway) until the things that are made here are competitive with cheap imports on price.

Imports being made more expensive is a small step in the right direction.

 

[Joffey]

I think you've missed the point.

They won't make it here, and nobody will buy things made here (not in any great volume anyway) until the things that are made here are competitive with cheap imports on price.

Imports being made more expensive is a small step in the right direction.

Well I buy the expensive stuff from abroad, not the cheap stuff - so does that mean I'm part of the solution? Opening up the door for British companies to make it cheaper over here?

 

[confusedcyclist]

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.

Seems absurd, but can you afford not to replace it? What if the prices keep going up? Which they could, buying now could be a hedge against further inflation.

 

[T4tomo]

Seems absurd, but can you afford not to replace it? What if the prices keep going up? Which they could, buying now could be a hedge against further inflation.

I think its more absurd to suggest he needs to replace a perfectly good 3/ 4 year old bike now just because prices are going up. Unless he smashes the frame his current bike will last him years...

 

[confusedcyclist]

I don't think you have understood the long term implications of inflation. Waiting to buy is not always the smartest move financially. Even if it seems it might be to those that don't understand how inflation affects buying power of money. YMMV.

 

[MntnMan62]

I don't think you have understood the long term implications of inflation. Waiting to buy is not always the smartest move financially. Even if it seems it might be to those that don't understand how inflation affects buying power of money. YMMV.

Long term? We're talking about bicycles here. Over time the technology improves and improves. So a bike you bought new in 2000 would be an entirely different bike with superior groupsets. And you aren't considering the opportunity cost of the money that you spent buying a bike you didn't need just be able to have it when you might need it in 10 years. It's probably not a good idea to dismiss people for not understanding financial concepts when you yourselve may not have considered those same concepts in your response.

 

[confusedcyclist]

Our cognitive biases can easily skew our thinking and judgement. Can you not envision an economic environment where potential opportunity costs are outweighed by, hint hint, inflationary pressures? Or has your recency bias and possible lack of historic study clouded your own ability to comprehend the wider point I was making, which, by the way was initially offered in a friendly tongue in cheek manner. But this is a hill I am prepared to defend, because I have a feeling your biases might need shaking just a touch.

Not all bicycle redesigns confer technological 'improvement', most here would agree, technological improvements in the cycling realm are marginal these days, nor do all bicycle manufacturers try to dupe customers into buying the latest and greatest with consumerist tropes such as planned obsolescence, and these are not the brands I would personally be buying as investments in mobility and as I'm not interested in primate social status signalling habits. There are several bike brands which prioritise reliability, repairability, and backward compatability, and your knee jerk reaction to my point is telling of your own biases about the market! Please note, this is all shared in the spirit of good conversation and is not an attempt to win a d1ck swinging contest, I'm just pointing out that this is not a black and white issue.

Edit. I just realised you accused me in your first response of suggesting he replace his perfectly servicable current bike, that's beside the point as we would have to assume at some point he would need to do so anyway. Like a situation whereby a person owns two pairs of shoes at any time, they would not immediately throw out their first pair if they were offered the chance to own a second. The advantage of buying the second pair before inflation reduces the buying power of one's money is bolstered by the reduced rate of wear of each pair of shoe if they are alternated. This is before we get into other benefits of owning two bikes for resilience purposes. If inflation is sustained over a period, and there is not sufficient return in equities or interest bearing account, the people delaying purchase might be behind financially.

 

[roubaixtuesday]

Brexit was meant to give is the exact same trading relationship as we already had.

I have a bridge you may be interested in?

 

[roubaixtuesday]

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

They're all made in Taiwan though? Except perhaps a few top of the range or bespoke ones??

 

[Scoosh]

MOD NOTE:
Many posts have been Deleted due to a very public spat.

It's simple: follow the Rulz, keep it polite, keep away from the politics - and the thread can remain open.