The bike manufacturers got very greedy during Covid, prices in general have risen by up to 40% with downgrades in specification, two typical examples Specialized hybrid with high tensile steel fork for £650, Cannondale hybrid with rigid fork and Shimano Altus rear mech for £850, neither of these bikes even had Shimano crank sets or Shimano disc brakes, no one wants to buy new as you can get mint condition bikes on Marketplace and Ebay for about 65% less than retail prices, I do really feel for the small independent bike shops, in the end consumers will always vote with their feet.
State of the industry: a running thread
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CassidyAce
Senior Retro Guru
I think the bike industry has found that its costs have gone up (like almost everyone else's) and some of that is being passed on to consumers with the result that, sometimes, it seems like customers are being asked to pay a lot for relatively little. I'm not seeing much evidence that it's any part of the bike industry that is making huge profits.
Takingabreak
Dave Yates Fan
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When I see a new bike with a rrp of £1500 I just can't see how it can possibly cost anywhere near that to make. I don't think that all the bike companies are profiteering (the £5k-10k bikes clearly are) but I think there must be so much "bloat" that needs to be paid for within the industry that gets passed on to the consumer.
You do realise that the aim of the game is to make a profit yeh?
Nearly every item you buy is produced for a fraction of what it’s sold for. But it takes money to get it from the producer to the consumer as each person along the way takes a little slice as I’m guessing they themselves like to have food on their table.
I’ve no idea why people get so upset about certain trades making a profit. Cars and bikes seem to be worse when in reality … your local supermarket has far greater mark ups and nobody cares.
Takingabreak
Dave Yates Fan
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Of course I realise that. Companies are only in business to maximise profit for the shareholders.
Exactly … so if you are looking at a £1500 bike why is it a shock that it doesn’t cost anywhere near that to produce. If they not setting off with a 50-80% margin they won’t make any money.
Takingabreak
Dave Yates Fan
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They also won't make any money if the prices are such that people stop buying the product
Obviously but in reality bikes aren’t actually overpriced if you account for inflation. It’s the fact that wages haven’t increased at the same rate which is why people think they are expensive. Same as many many other items and people continue to find way to buy those.
CassidyAce
Senior Retro Guru
Exactly. The entire bike industry is not daft enough to damage its profits by wilful overpricing. If it could make more profit by reducing prices, it would. But it's caught between rising costs and a squeeze on consumer spending power.
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