Bike prices rising?

Infamous

In the LBS yesterday chatting to the owner, he was saying that I should buy a bike quick, because at the start of May (next week) bike prices are going up 15% (i think). He said it was "the first time in years".

Is it true? if so why, cos of the metal prices?

redddraggon

It's because of the value of the pound dropping I believe.

OffTheBackAdam

Pound's value falling, oil prices up, metal prices up, inflation up.

vermooten

It's a great sales technique to get rid of old stock.

flattythehurdler

Untrue, this is being led by the distributors. Whether they in turn are being led from higher up I don't know, but the trade prices are definitely being increased. We were told that it was due to raw materials , though the euro strength may well be invoved. Funny how nothing ever gets cheaper when the euro weakens

Infamous

ok cheers, just wondered.

APIII

I work for a company that has switched the majorityof it's supply to the far east in recent years. In the last 6 months, and in particular the last 4 weeks, we have come under immense pressure to accept cost increases from these suppliers. The majority of raw materials, plastics, aluminium, steel, etc. have all increased massively due to the booming economy in China. Unfortunately, it seems like the far east bubble has now burst. With so much bike related product coming out of China nowadays, I am sure we will see prices rise in the coming months. However, if you are in continental Europe, you may not see this as the euro is so strong at the moment and importers may be able to offset the cost increases with currency gains.

McBain_v1

This will only be of concern to me if one of my frames dies and I choose to replace it with a nift single-speed machine from Enigma.

oldwelshman

With the pound weakening it costs more to import the bikes and components, make buying from eroupe less of a saving also

Gav2000

I've also read that Chinese industry in the Bejing/Olympics areas is closing down for at least 6 weeks before and during the Olympics to try to reduce smog levels. I can't think where I read it now but it seemed a reasonably reliable source. I'm sure 6 weeks of non-production from a key area of China will have an impact somewhere.

Gav.

Belv

In my line of work it's mainly down to an increase in the price of raw materials in the far east. The weak pound is offset by the weaker dollar, which is the preferred currency for buying from over there.

The European brands will be doubly hit by their cost of buying in the frames AND the strong Euro. Which might make them think about whether it really was a good idea to outsource all their frame manufacturing to Taiwan and China.