New Bike Prices

Questions about purchasing bicycles and parts

New Bike Prices

Postby MH » Sun May 11, 2008 6:33 pm

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?
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by BNA » Sun May 11, 2008 7:25 pm

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Postby sandman » Sun May 11, 2008 7:25 pm

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"

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Postby Deanj » Sun May 11, 2008 7:29 pm

Prices to rise in 2008

Remembered reading this a few weeks ago.
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Postby mountainman403 » Sun May 11, 2008 9:19 pm

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. :? :evil:
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Postby AUbicycles » Sun May 11, 2008 9:57 pm

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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Postby peter » Mon May 12, 2008 2:22 pm

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.
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Postby MH » Tue May 13, 2008 11:38 am

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.
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Postby Andrew69 » Tue May 13, 2008 4:11 pm

peter wrote: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.
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...
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Postby chid » Thu May 15, 2008 5:41 pm

From what i have heard from talking to people is the prices are going to rise between 10-15% on 2009 bikes

cheers :cry:
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Postby MountGower » Thu May 15, 2008 5:45 pm

On the bright side, they'd still be cheaper than they were ten years ago.
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Postby Geoff3DMN » Thu May 15, 2008 6:35 pm

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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Postby crhoo1 » Fri May 16, 2008 10:21 am

I would suggest the LBS just wants a bigger cut!!!
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Postby Redbull » Sat May 17, 2008 11:02 pm

Check out the attached link for story from the bike retailing industry in the US.

http://www.bicycleretailer.com/news/newsDetail/1328.html

I like the bit at the end

Even though model year 2009 bikes will begin showing up this summer, suppliers will not finalize pricing until the last possible moment, probably late this month and into June.

No one expects 2009 bikes to be priced 20 percent more than the 2008 bikes they replace even though component cost hikes warrant that.

Retailers can expect to see lots of creativity in parts spec’d as product managers try to cut costs where consumers won’t notice like bottom brackets, cassettes, stems and seatposts.
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Postby chid » Mon May 19, 2008 10:30 am

crhoo1 wrote:I would suggest the LBS just wants a bigger cut!!!


I really doubt this is the case as it the raw material cost that is pushing prices up.
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Postby peter » Mon May 19, 2008 3:40 pm

Funny that cars use a lot more metal parts than bikes but their price remains pretty much constant.
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