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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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- Location: Alice Springs, NT
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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Walk a mile in my shoes and you will probably get blisters with these DAMB cleats.
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- Location: Sydney
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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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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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.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.
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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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.
--Ken Olson, president of Digital Equipment Corp. 1977
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- Location: Rockingham
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 specâ€™d as product managers try to cut costs where consumers wonâ€™t notice like bottom brackets, cassettes, stems and seatposts.
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