Questions about purchasing bicycles and parts
15 posts • Page 1 of 1
I was in one of my LBS the other day admiring some of the 2008 bikes fighting the usual dilemma relating to want as opposed to need. The shop owner was offering an extremely tempting discount on a couple of desirable bikes. As an added incentive to purchase now he claimed that the price of next years models was going to increase dramatically due to the increased price of raw materials and that this was the ideal time to upgrade before said increase. He claimed this info was straight from the horses mouth ie the rep.
Does anyone have any more substantial evidence of this dramatic price rise for the 2008/2009 bike range or was this a bit of uncreative marketing?
I hate to ask but what's substantial... is it $100 more for a $1000 bike or $100 for a $4000 bike, its all relative. Global prices are on the way up due to the stupid and unfounded need for the oil suppliers to jack up the prices, this all has a flow on effect.
At the end of the day, if one manufacturer jacks up the price it doesn't mean that the rest will follow, this always creates opportunity. Also, I'm 45 and if I had $10 for every sales pitch that mimicked what you've posted, I'd be in the Bahamas somewhere never having to work again
Life is full of "run out sales, bargain of the century, last one I have, next years model will be so much more expensive, get in quick as you wont be able to get them anymore, I have lots of others interested so decide quickly". It all boils down to the Black Magic art of "Closing the deal"
It could be true, as I deal with steel, alloy and chromolly every day and the raw materials have just gone up another 22%. Thats now over 120% in 2 years.
Walk a mile in my shoes and you will probably get blisters with these DAMB cleats.
I got this report too from a European cycling mag, the cost of raw materials are increasing. Can't find the exact article now though another link confirming the expected price hike: Bike EU
One thing that I noticed is that outside normal inflation increases, typically when any industry announced a price increase the prices are raised all along the line - raw materials/production > distributer > retailer. It's an opportunity to cash-in ... that being said when price wars and cost cutting starts again then there are change to get a good buy, you just have to time it carefully.
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Shortage of raw material is just an excuse, it's more like the importers/distributors got greedy so they jack up the price. If anything prices should go down due to strong Aussie dollars, also shipping is less from China/Taiwan comparing to other parts of the world.
Thanks for the feedback. It would appear, after reading the various articles, that the most likely cause of a possible price increase on next years bike ranges will be an increase in the price of raw materials. This includes the high price of oil.
One other issue that was mentioned at the LBS was that childrens bikes would no longer be classed as toys and that a higher rate of import duty was to be levied.
However , as peter mentions, these issues are most likely to be used as an excuse by the importers and distributors to ramp up prices whilst ignoring the benefit , for imports, of a strong Australian dollar.
Hmmm, I dont know about it just being an excuse. My steel supplier will no longer hold a price for more than 4 weeks due to the rapidly rising international costs, so it is definitely a concern.
But, I guess the amount of any actual price rise shouldnt be that great as there is less than 10kgs of steel/alloy/carbon/etc in most bikes anyway...
The price of crude oil effects almost everything and the gap between demand and production is widening due (primarily) to the growing economies in China and India and falling production of crude in the western world.
This gap between demand and production has the effect of creating a bidding war for the crude that is produced driving up crude prices.
Which leads of course to a flow on effect in production of almost every industrial product we use.
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Check out the attached link for story from the bike retailing industry in the US.
I like the bit at the end
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