Mike Sinyard
Mike Sinyard, founder and president of Specialized.
Sinyard is quoted as saying Specialized is "working hard" to minimize the factors that cause price increases. However, Sinyard says to expect bike prices to rise by 10-12%. Tires and tubes will increase by 10-15% on top of a 15% jump last November.
It's reported that Sinyard has warned Specialized dealers to also expect 12-20% price increases for helmets, saddles, gloves, shoes and some other products. If the higher prices aren't in effect yet, they're expected in May as 2009 model year products begin to be introduced.
Sinyard reminded his dealers that buying bikes and accessories in advance of cost increases locks in lower prices for their shops. They can then increase their profit on those items as suggested retail prices rise.
Am I cinical but not a word about trying to pass on savings to those loyal customers out there, just dealers having an opportunity to make more out of us.
Any thoughts.
With increases across the board in everyday living, expenditure on cycles and equipment may be pushed further and further down the priority list.
Sinyard is quoted as saying Specialized is "working hard" to minimize the factors that cause price increases. However, Sinyard says to expect bike prices to rise by 10-12%. Tires and tubes will increase by 10-15% on top of a 15% jump last November.
It's reported that Sinyard has warned Specialized dealers to also expect 12-20% price increases for helmets, saddles, gloves, shoes and some other products. If the higher prices aren't in effect yet, they're expected in May as 2009 model year products begin to be introduced.
Sinyard reminded his dealers that buying bikes and accessories in advance of cost increases locks in lower prices for their shops. They can then increase their profit on those items as suggested retail prices rise.
Am I cinical but not a word about trying to pass on savings to those loyal customers out there, just dealers having an opportunity to make more out of us.
Any thoughts.
With increases across the board in everyday living, expenditure on cycles and equipment may be pushed further and further down the priority list.
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Comments
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He's right but obviously telling store managers this just means sales up front for Specialized and Sinyard's bank account. The pound and dollar have both fallen significantly and so import prices will be rising.
Maybe an economic slowdown will make some cycle more. But for many, cycling is a leisure activity and involves discretionary spending. Many will make parts last longer and put off buying those shiny new parts.0 -
"Maybe an economic slowdown will make some cycle more. But for many, cycling is a leisure activity and involves discretionary spending."
I rather suspect that the reduction in spend by the latter will outweigh the increase by the former! Those who are forced by falling living standards to cycle will be frequenting the 100-quid-a-bike shops, NOT the 1000 quid toys! All sorts of luxury items (other than at the VERY high end) are facing a depressed market for a few years at least.d.j.
"Cancel my subscription to the resurrection."0 -
I very much doubt that an economic downturn forces more than a tiny handful of people to cycle. never underestimate the British fondness for motorcars and avoiding physical exertion.
As for the exchange rate, I suspect a weak $:£ would be very much to Specialized's advantage as they don't import from the UK but do export.0 -
The point is more that the dollar and pound have both fallen against the taiwanese dollar and the chinese yuan, so goods from Specialized (and many other manufacturers, including European products as the £ has fallen against the € too) will cost more as that's where they're made.
As for people taking up cycling, I didn't mean many would start, that's why I said some might ride but many will cut back. Those who are forced to ride are hardly going to walk into a shop and snap a Lance replica Trek, they are more likely to use something fished out of a canal.0 -
True that Specialized will pay more for their inputs yes, but they'll also be doing well from the exchange rate changes in many of their major markets (EU and UK).
I suspect rising production costs are a bigger factor than exchange rates here.0
