Rip off bike prices 2011

caterhamboy

Been looking for a new bike after mine was stolen, and noticed the giant trance x4 is £1290 this yr, for same spec as last yrs £1,000. How can they justify such an increase? can't just be metal costs, as car prices haven't gone up much and they use a lot more metal,energy. Think Halfords will be having a bumper yr and deserve to for offering value.

RevellRider

Various reasons, I've been told everything from a strong yen/weak £. Transport costs have risen. Material costs rising. Progression on various models. Some manufacturers put their prices up ahead of the VAT increase so they didn't have to make a change in January.

The Northern Monkey

supersonic

Prices were artifically low for a few years too: now they are up.

stuisnew

not answering your question but there's still some 2010 models around for even the most popular bikes, keep looking if you know what you want as you may be able to get the better valued 2010 bike with a discount for being old stock.

As you state, culmination of VAT, metal prices, very fast rising fuel costs and weak pound making imports more expensive

diy

Sorry but a govt that cuts back on public debt no matter how miserable it makes us feel are not responsible for increased prices (apart from 2.5% VAT obviously). Imagine a scenario where the country kept spending beyond its means, kept taxing, increasing inflation and kept wasting our money.

Net result would be lower value £ = higher fuel and import prices.

Now the LBS is probably upping prices because its anticipating a tough year and wants to max margin on every sale, working on the basis that it can always sell its surplus stock cheap at the end of the year.

RevellRider

It's not the LBS raising the price because it may be a tough year, the suppliers and distributors are putting the prices up

caterhamboy

I have only looked at giant and khs but both seem to have had big increases, i have decided on a boardman. does anyone know if 2011 bikes will be same spec as 2010 bikes?

StickDigital

caterhamboy wrote:

I have only looked at giant and khs but both seem to have had big increases, i have decided on a boardman. does anyone know if 2011 bikes will be same spec as 2010 bikes?

Not sure but I know the Road Team Carbon has stayed the same.. probably trying to maximise on takings by keeping the same spec...

btw I just setup a Boardman Facebook page - Get invloved, post pics, geek-off about the Boardman bikes!

http://www.facebook.com/pages/Boardman-Bikes/199877860022623

caterhamboy

will do, think i'm going to order this wk'd. they have a team in 20 miles from me for £849 which has got to be unbeatable. But the voodoo for £1000 from £1300 keeps tickling my fancy!

The Northern Monkey

diy wrote:

Sorry but a govt that cuts back on public debt no matter how miserable it makes us feel are not responsible for increased prices (apart from 2.5% VAT obviously). Imagine a scenario where the country kept spending beyond its means, kept taxing, increasing inflation and kept wasting our money.

Net result would be lower value £ = higher fuel and import prices.

Now the LBS is probably upping prices because its anticipating a tough year and wants to max margin on every sale, working on the basis that it can always sell its surplus stock cheap at the end of the year.

yes they are... i'm blaming David Cameron for everything atm.

Like why i've run out of teflon lube, thats definately his fault.

rockmonkeysc

Bigger increase on the Trance X3, up by £600 & with a slightly lower spec :shock:

geoff93

I promise you it isn't the LBS putting the price up, we set the price to the RRP, and often sell it lower than that! Me and my boss don't agree with the prices, but he has to sell things close to RRP as it is a small business and he has to make a living from it!

kaytronika

The Northern Monkey wrote:

yes they are... i'm blaming David Cameron for everything atm.

Like why i've run out of teflon lube, thats definitely his fault.

I concur... He's the one who didn't bolt my chainset on properly.

caterhamboy

Think most of the 2010 bikes will get sold quickly this yr when people realize the cost of 2011 bikes, i can however see the like of halfords using this to there advantage and start to dominate the market. If boardmans looked good value last yr, this yr they are going to look like giveaways. Hope they have the stock to cope.

djames77

About 18 months ago i remember reading the same sort of thing on here - how come bikes have gone up in price so much! - IMO it's due to a couple of reasons, none of which relate to the manufacturing costs, transport cost or VAT increase. The simple fact is that cycling in every form is becoming more popular and as a result of CTW schemes and such like its more accessible than ever. I work in sales myself and would see the above scenario as a red rage to a bull to put prices up. I bet 60%+ of buyers don't even know what they are buying if it's through CTW and then you have the numbers that buy just because train fares and fuel prices have risen but only work a mile from work. I think it's easy money at the moment and (this is not a fact by any means and is simply my opinion) would not be surprised if some sort of price fixing monopoly was going on behind the scenes with the major players.

ftwizard

The same reason that all prices are going through the roof. All manufacturers, service providers, local authorities etc realise that the spineless wankers at the Bank of England, won't do anything to control inflation, their sole job, so they can charge what they like.

Andy B

Quite a few manufacturers haven't increased their prices drastically for 2011, Cube have actually dropped the prices on several bikes and some have only risen by 8%.

You could for example get a similar spec on a 2011 Cube for £1100 that you would pay £1500-£1700 for from certain other manufacturers in their 2011 range (Spesh, Trek, GT, Giant...)

The big companies seem to be the ones that have put the prices up the most from what I can tell, they're just using their name to sell stuff to the brand loyal sheep who are blinkered to other brands which offer better value

djames77

Andy B wrote:

Quite a few manufacturers haven't increased their prices drastically for 2011, Cube have actually dropped the prices on several bikes and some have only risen by 8%.

You could for example get a similar spec on a 2011 Cube for £1100 that you would pay £1500-£1700 for from certain other manufacturers in their 2011 range (Spesh, Trek, GT, Giant...)

The big companies seem to be the ones that have put the prices up the most from what I can tell, they're just using their name to sell stuff to the brand loyal sheep who are blinkered to other brands which offer better value

Thats sort of my point thought Andy, big manufacturers hike the prices up because they can. In reality how many people entering the market do you think fully research it and hear about Cube et al?

I was massively into mountain biking 15 years ago but had Raleigh and Claud Butler bikes and i think people going into it now buy themselves and their children brands they know or a brand that markets the most. Also i think the bigger brands give bigger kick backs to the LBS for selling their brand.

Incidentally i find it almost amusing how so many different types of bikes have now become available such as downhill, all mountain etc.. When i was younger i use to do drops of 8+ feet and even back flipped off a table top on a Raleigh montage!! Either bikes were tougher then, or people were! :P

Andy B

The margins on bikes are very similar for whichever brand the LBS stocks.

Certainly no better margin from a top manufacturer than there is with a less well known manufacturer from what I've seen

djames77

not on specific bikes but like car dealers they get a kick back on the volume they sell

RevellRider

Are you suggesting that bike shops get a better deal from suppliers the more they sell or that suppliers actually give a 'bonus' to their best retailers for the more bikes they sell?

caterhamboy

Giant have played a blinder and will miss the whole cycle to work scheme of £1000 so will gain nothing. On another plus point maybe the smaller brands will have a bumper yr.

supersonic

Material costs, importing costs, conversion rates etc are only part of this equation. Prices dropped steadily from 2000 for a given level of kit, and bike and parts were artificially low.

In 1996 a top end Judy SL was £600 rrp. In 2000 it was £200 rrp. We enjoyed many years of low prices: another example, a Zaskar LE in 1998 with XT kit, RS SIDs an mavic wheels was £2600, while in 2006 a Zaskar Pro with XT, Rebas and good wheels was only £1300. It wasn't sustainable, and we have seen year on year price increases to compensate.

Some brands are cheaper due to the massive buying power of some retailers, or those who miss part off the food chain out.

Northwind

Remember when a Pitch Pro was £1000? That was an incredible bargain, now that they're £1750 and still a good deal people keep saying "But they used to be £1000, why are they so expensive?".

supersonic

Same sort of thing. 2006 - 2007 was a superb year for buying bikes. I am pretty sure Spesh reduced prices further to get favourable reviews and the name in the public eye. It worked!

uphillbothways

A picture speaks a thousand words - the Pound versus the Yen and the Euro:






For a long time the pound was incredibly strong and so imports were dirt cheap. The pound started falling, but prices were kept artificially low by competitive forces - manufacturers and retailers are obviously reluctant to hike prices and lose business to their competitors, so they've been cutting away at their margins for some time.

This was fine while cycling was a massive growth market, because greater volume made up for lower margins and overall profits could still improve. Now the recession has bitten, casual customers aren't spending, so the obvious thing to do is raise prices for premium products bought by enthusiasts. Prices are up at the real bottom-end, but not by nearly as much - you can still buy a "dual suspension" Bike Shaped Object for under a hundred quid. Someone spending a grand at Evans just isn't as concerned about price as someone spending £150 at Halfords.

anjs

yes makes my Tranxe x1 that brought new n 08 for 1500 seem a real bargin now

sidneysides

But Cube entry and mid range such as the Cube Acid and Cube Attention are £50 more than the same model last year, possibly with a lower spec/ The Acid was £679 last year and is now £729

djames77 wrote:

Andy B wrote:

Quite a few manufacturers haven't increased their prices drastically for 2011, Cube have actually dropped the prices on several bikes and some have only risen by 8%.

You could for example get a similar spec on a 2011 Cube for £1100 that you would pay £1500-£1700 for from certain other manufacturers in their 2011 range (Spesh, Trek, GT, Giant...)

The big companies seem to be the ones that have put the prices up the most from what I can tell, they're just using their name to sell stuff to the brand loyal sheep who are blinkered to other brands which offer better value

Thats sort of my point thought Andy, big manufacturers hike the prices up because they can. In reality how many people entering the market do you think fully research it and hear about Cube et al?

I was massively into mountain biking 15 years ago but had Raleigh and Claud Butler bikes and i think people going into it now buy themselves and their children brands they know or a brand that markets the most. Also i think the bigger brands give bigger kick backs to the LBS for selling their brand.

Incidentally i find it almost amusing how so many different types of bikes have now become available such as downhill, all mountain etc.. When i was younger i use to do drops of 8+ feet and even back flipped off a table top on a Raleigh montage!! Either bikes were tougher then, or people were! :P

GHill

caterhamboy wrote:

i have decided on a boardman. does anyone know if 2011 bikes will be same spec as 2010 bikes?

No, there's a big refresh of the Boardman range just down the line (lot of carbon fibre models). It could also see quite a price bump.

Boardman are interesting in that they only refresh the bikes on a two year cycle, as opposed to the single year cycle of most other companies.

superkenners

Due to recession companies could not push through price rises last couple of years and of course there are inventory/contracts that help smooth out fluctuations in FX rates.

Pound strength previously was exaggerated by Gordon Brown's 'UK economic miracle' but as we know that was all bollox its probably back to where it should be. So importers have to hike prices.

Input prices (raw materials have gone up but as % of bike cost they are pretty small), freight rates are still quite low despite oil prices so that's not a biggy.

Supply and demand encourages them too as cycling new big thing. CTW also still quite good despite efforts to curb it.

Simples

And if you can afford to spend a grand + on a bike you shouldn't be voting labour even if you are a Northern Monkey (unless that's your benefits cheque for you bad back)!!!!!