State of the industry: a running thread

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clubby said:
I’d a look through the administration report and the only people paid in the administration are the bank, presumably from sale of the property. I doubt some all of the smaller companies had that kind of cover and they are ones that even smaller sums can hurt. I’m looking at £1200 in advertising to the guys at Misspent Summers as an example.
HMRC were owed £170k.
Uncle Steve is out £900k! Hopefully new Orange thrive and he gets some repayment, but the truth is legally that debt is wiped out.
In fairness, Ash was also owed £350k that he put into the company.
The saddest part for me is they were listed as having £3.5 million in stock, that was sold for £350,000.
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If this is true (need to fact-check!) then this is a sorry state of affairs and that last point, a brilliantly awful example of just how mental the (state of) industry is.
 
This style of business behaviour is not specific to the cycle trade.
It's a lot easier to borrow £1,000,000 with a fancy business plan than make it working.
And if you've borrowed a million, you can tell yourself you're probably worth a 100k wage plus share options and other tax-efficient perks.
 
I dont really think that any of this is unique to the bike industry/sector. It's prevalent across multiple sectors of industry, commerce and society. It's consumerism without brakes or regulation. People "want" (expectations/pg pressure/boredom) and they will "have" because they are conditioned to being entitled. No money? then take penurious credit loans. I wonder if the last days of Rome were like this. Chicken livers being sold at 75 denarii (75 denarii? I could buy a villa with a hypocaust for 75 denarii last year!), and no controls placed on the marketplace.

Let's face it: society, as a whole, has become used to wealth like we've never enjoyed before. It's natural for people to:

a. As a consumer, find things to buy (the opiate effect).
b. As a vendor, find ways to keep consumers coming back.

The likes of many posters here, who step back one or two paces and stop and reflect, are the outsiders. Atypical of society.
 
The one thing that is proper expensive... housing.
Imagine that quantity of money tied up in the mortgage market, being used to feed growth in the economy. Screenshot_20240222-132840_Firefox.jpg
So that's 1.6 trillion, you can borrow a tiny bit of that for your new Spesh s-works Epic, or maybe start an online retail company selling stuff at below cost, turnover turnover turnover, and of course pay yourself 100k, cos you're worth it😆
 
al-onestare said:
Getting back on topic, has anyone listened to these?

https://escapecollective.com/how-did-the-bike-industry-get-into-such-deep-trouble/
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Some interesting perspectives in those podcasts. What I still can't get my head around is the whole marketing train of thought that there could be strong demand for very expensive bikes in the first place, let alone year on year sustainable demand for very expensive bikes. What train of thought lead to the normalising of £5k bikes within the big brands?
 
Takingabreak said:
Some interesting perspectives in those podcasts. What I still can't get my head around is the whole marketing train of thought that there could be strong demand for very expensive bikes in the first place, let alone year on year sustainable demand for very expensive bikes. What train of thought lead to the normalising of £5k bikes within the big brands?
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The policy is called: Consumerism. %age profit of a large number is so much more lucrative than the same %age of a small number.
 
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