2012 Bikes Price Increases Rip Off. Again!

slowallonian

Every year it seems to get worse. Just seen Cannondale's new line-up and once again the price increase or lowering of spec, whichever way you want to look at it, clobbers us.

All the manufacturers are just as bad, but I don't see that they can all justify 10% price increases year on year?

It seems the best time to buy a bike is when you first think about it otherwise that nice frame with the 105 kit will be out of reach when the new range comes in. Surely cycling is one of the only things where someone can roll up on the very latest model and you can then feel all smug because you're sat on last years or the year before's model which is actually a better bike for the money?

I can probably answer my own question but are we mugs and slaves to fashion?!

Secteur

Cycling is suddently becoming very popular, and people (like me) who would never have thought of buying a bike suddenly do so.

Most of them dont go on the forums, and dont know about the likes of Ribble or Planet X - or even Wiggle - they just go to the LBS and say "what can I get for £X".

So, since it's becoming so popular and there is so much relatively easy money to be made, prices will climb!

Stone Glider

Wot 'e said. Plus, our wonderful economy is heading full-tilt down the gurgler and the currency has devalued by about 30%

All the bright, shiny toys we love so much are made in foriegn parts, price rises are inevitable.

Rouge Penguin

Come to Windsor. New bike shop opened up, colnago wallpaper all round and not an entry level bike in sight. Bet they'll scooping the cash in, the Dogma in the window does look sexy though (cue and unfunny 'how much is that dogma in the window' joke)

MountainMonster

Welcome to a booming sport. Due to popularity prices are rising. On top of that, petrol has gone up quite a lot in the last year, so shipping prices have seen spikes, resulting in manufacturers paying more for getting the parts they need. Everything is getting more expensive, not just bikes. Welcome to the business world

Cressers

It's a result of inflation, deflation, costs of raw materials and Sh*mano groupsets,, the wind is blowing from the east, the moon being in Libra, the month having an 'r' in it...

..But mostly the cycle industry getting away with what it can, fueled by masses of guilible consumers.

Yossie

Don't forget about the war - prices of steel, ali, platinum (ok, very rare in pushie use) titanium, etc all being pushed up by scarce resources and increased demand.

The government(s) put in a big arms order and the price rises for the rest of us as current stocks are used up.

Currency fluctuations, resources becoming scarcer and harder to mine, more enviromental restrictions meaning more costs when mining/processing, all that jazz all means that the prices rise.

Increases in costs for dealers over here add on a bit as well.

Then add on transportation cost increases due to fuel, protection, and we're stuffed lads/ladettes.

Cressers

Singlespeed your old steed.

TheStone

The govt and bank of england decided to print a load of money and double the narrow money supply with the aim of protecting bad investments from crashing.

This initially leads to currency devaluation, which is very noticeable in bike prices.

There's also a general rise in commodity prices, but this is versus the dollar and the US are also printing money to devalue.

rick_chasey

Exchange rate (pound is weaker compared to the Euro where a lot of it comes from), inflation, and an increase in demand = massive price hike.

gilesjuk

Inflation and raw material price rises.

Investors are trading more in commodities due to the risks in trading in financial and company shares.

Rubber prices have risen lots, since it's an oil derivative. We've used man made rubber, not natural rubber since WW2.

lycraholic

The thing that always gets to me is that pretty much any bike shop, when asked, will routinely take off up to 10% off the cost of a new bike. Are there any other retailing businesses where the margins are that intentionally flexible?

inkyfingers

Lycraholic wrote:

The thing that always gets to me is that pretty much any bike shop, when asked, will routinely take off up to 10% off the cost of a new bike. Are there any other retailing businesses where the margins are that intentionally flexible?

Most retailers selling high value items (i.e. over £1000 RRP will usually have some room for negotiation. You'd be an idiot if you didn't at least ask for a discount when buying an expensive item as they will usually shave some of their margin to make sure that you don't just go to the shop round the corner. The secret to getting a good price is to not be in a hurry, I walked out of a car dealers last year when they wouldn't reduce their price to the level I was prepared to pay. Sure enough later that day I got a phone call from the dealer manager saying that they had sharperned their pencil and would offer a better price (slightly above what i'd hoped, but close enough).

chiark

Indeed ^^^.
Buy with your head, and let your head rule.

mark63

Just out of interest as people are mentioning the value of raw materials I have machinery sat on the yard worth more as scrap than 2nd hand resale value

Headhuunter

I would never buy the latest model of anything as soon as it hits the shelf, be it a TV, car or bike. You're immediately paying a premium just for it being one of the 1st off the production line. Forget 2012, just look for bargain 2011 or 2010 models...

As someone above said, the 2012 models are aimed at newbies with more money than sense who roll into the LBS and say I have £X to spend, what've you got? The LBS salesperson proceeds to recommend them that shiny 2012 model which gives him top commission on the sale... I worked in a camera shop years ago and it worked that way then! It was amazing the number of people who just rolled into a shop without a clue and genuinely believed that the salesperson in front of them was about to offer them totally impartial, independent advice...

Blacktemplar

slowallonian wrote:

Just seen Cannondale's new line-up and once again the price increase or lowering of spec

Erm.... CAAD9 105 bought in 2010 - RRP £1,299..... CAAD10 105 bought in 2011 - RRP £1,299 :?:

Are other models in the range significantly different? Haven't seen the 2012 prices yet.

Blacktemplar

Headhuunter wrote:

I would never buy the latest model of anything as soon as it hits the shelf, be it a TV, car or bike. You're immediately paying a premium just for it being one of the 1st off the production line. Forget 2012, just look for bargain 2011 or 2010 models...

See above - CAAD10 105 available for under £1100 now....

Blacktemplar

One other point worth noting.....

Many folks can't afford a flash bike as a cash purchase, and want to take an interest free finance option (rightly or wrongly - discuss how credit culture wrecked our economy ). The vast majority of bike shops won't offer IFC on discounted (ie last year's) models, 'forcing' punters to buy new.

Simples.

rick_chasey

Headhuunter wrote:

It was amazing the number of people who just rolled into a shop without a clue and genuinely believed that the salesperson in front of them was about to offer them totally impartial, independent advice...

Pfft. You're still a salesman.

Don't admit to that.

They're the people who keep me sane. "Do you want this job that (will totally ruin your career) is an amazing opportunity?"

"Actually, that is interesting..".

RESULT.

Headhuunter

Rick Chasey wrote:

Headhuunter wrote:

It was amazing the number of people who just rolled into a shop without a clue and genuinely believed that the salesperson in front of them was about to offer them totally impartial, independent advice...

Pfft. You're still a salesman.

Don't admit to that.

They're the people who keep me sane. "Do you want this job that (will totally ruin your career) is an amazing opportunity?"

"Actually, that is interesting..".

RESULT.

He he, yes, that's true...!

porker33

For the last 3 years I have bought a bike around this time, to get an end of season purchase and feel good about it going up even more next year....

Either you can't not buy a new bike under those circumstances, or I can't help myself! :roll:

A 2011 Caad10 was too good to miss out on!

APIII

Most stuff coming out of the far east is still going up in price whether it's a Pinarello or a stapler.

brakelever

not only is the price of raw materials rising , hence price rises , cycling is becoming popular again hence dealers jumping on the bandwagon - ergo we get tucked up and of course some of the bike fraternity are next to carp anglers in being tackle tarts , ie its new i must have it

unixnerd

2008 Cannondale Synapse 105 - 1249. 2012 model 1999, they're having a laugh.

Headhuunter

brakelever wrote:

not only is the price of raw materials rising , hence price rises , cycling is becoming popular again hence dealers jumping on the bandwagon - ergo we get tucked up and of course some of the bike fraternity are next to carp anglers in being tackle tarts , ie its new i must have it

Increased popularity and demand should reduce prices not increase them, as manufacturers are able to benefit from increased economies of scale of production and more companies are attracted by increased sale volumes and enter the market. At least that's the theory in economics, however undoubtedly bike 2 work has had an effect on prices in the UK and exchange rates an even bigger effect...

Cressers

As we're discussing Cannondale it's worth remembering that it isn't the orignal 'Hand Made in the USA' company now. I should think that most, if not all, their production has been outsourced to the far east. So the rationale for premium pricing due their domestic manufacture no longer exists. But do you still get a free labrador and Volvo estate with each purchase?

chiark

Cressers, is there a voucher that I need to mail in? Can I have the Volvo estate without the labrador, please? Or do I just take the labrador too, and sell it to the local restaurants?

EKIMIKE

Headhuunter wrote:

Increased popularity and demand should reduce prices not increase them, as manufacturers are able to benefit from increased economies of scale of production and more companies are attracted by increased sale volumes and enter the market.

True. In theory. But when the increase in demand is from a very rich demographic (middle-aged men with well paid jobs) then the manufacturers see the £££'s.

If anything all this shows that bike manufacturers are very astute to their market. It's no co-incidence that along with increasing demand from the above demographic, we've also seen more 'sportive' models with taller head tubes and compact chainset's becoming standard kit - things that make cycling easier for fat old men.

Equally their astuteness is a benefit as we're seeing many many features introduced which the market demands. E.g. carbon clinchers (they make no practical sense but the market demands them), super-light frames, cheap carbon frames, and the big one: online retail.

Headhuunter

EKIMIKE wrote:

Headhuunter wrote:

Increased popularity and demand should reduce prices not increase them, as manufacturers are able to benefit from increased economies of scale of production and more companies are attracted by increased sale volumes and enter the market.

True. In theory. But when the increase in demand is from a very rich demographic (middle-aged men with well paid jobs) then the manufacturers see the £££'s.

If anything all this shows that bike manufacturers are very astute to their market. It's no co-incidence that along with increasing demand from the above demographic, we've also seen more 'sportive' models with taller head tubes and compact chainset's becoming standard kit - things that make cycling easier for fat old men.

Equally their astuteness is a benefit as we're seeing many many features introduced which the market demands. E.g. carbon clinchers (they make no practical sense but the market demands them), super-light frames, cheap carbon frames, and the big one: online retail.

What's wrong with carbon clinchers and cheap carbon frames? OK perhaps someone going for a cheap carbon frame may be better off on a top end aluminium but not always...

EKIMIKE

Headhuunter wrote:

What's wrong with carbon clinchers and cheap carbon frames? OK perhaps someone going for a cheap carbon frame may be better off on a top end aluminium but not always...

If you read what i said, those are the positives that have come from astute manufacturers. People want carbon clinchers and cheap carbon frames. They are providing exactly that. The only real disadvantage is that prices are going up (although that's a bit of a generalisation).

All considered we're getting better bikes but in some cases we're paying a premium. There are still very competitively priced bikes out there. They may not have the branding you desire though (Ribble, P-X, Cube, Canyon, Verenti e.t.c).