Bike prices to go up in 2009, a lot. FACT!

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May 19, 2012, 11:25:44 AM

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[steveb]

Everything is going up in price, some things almost daily.

The cost of oil, transportation, high value of the Euro, wage bills, raw materials, all these things are sending prices in one direction only and it seems the long threatened price hikes in the bike world are now no longer a threat, it's a fact.

The bike trade is a bit daft in that the new year/new season stuff will start appearing in the middle of the previous year, typically 2009 bikes will start appearing in September of 2008. These bikes have long been spec'd and the cost price to the local importers will have been set some months ago, but the real cost in local currency is not set thanks to fluctuating exchange rates, and this along with many other variables means the eventual cost the bike to the end user, that's you, is going to go up, a lot!

Whilst no local importer/supplier wants to be the first to announce their local RRPs prices are starting to leak out, and across the board on mid to high end MTB's it's seems a 10% price rise is about the norm. Meaning a bike that in 2008 cost £999 will most likely cost £1099, a 2008 bike costing £1800 will most likely break the £2k price point and bikes over £2k will get even harder to afford!

But it doesn't end there. 2009 could be the first year where an RRP is not set for the entire season.

Importers typically take delivery of bikes and so pay for them in two main batches, with smaller top up drops between them. The first main batch for the initial launch around September, then the next around March the following year. Whilst most importers are close to setting the prices for the first launch batch (as stated typically 10% higher than in 08) most are warning that a further price increase later in the year can not be ruled out (and is indeed likely) due to continue rising costs from manufacturers, shippers and again currency fluctuations.

Some suppliers are preparing dealers for as much as a 20% price hike over the entire 2009 period.

Add to to this the rising costs of running a business (increased rents, rates, wages taxes etc.) and the good deals available from the well known discounters could well soon be not so good, meaning a double whammy for the rider looking a new 09 bike at a good price.

And just to add insult to injury most are saying that the traditional big discounts on current 2008  bikes that remains unchanged for 2009 except for the colour just won't be offered in the coming months. Many shops and suppliers are saying they'll be happy to run leftover 08 stock well into the 09 season and sell it off at modest discounts, being that it will still be cheap compared to the new bikes even if sold at the old full price.

As a final blow interest free is set to become a thing of the past on bikes too in 2009 as the banks start restricting who they lend to and what they lend against and the costs to the selling shop increase to levels that can not be offset against the profit margins.

The good news is global warming* is only going to get worse so the improved weather should mean more time to ride your more expensive new bike or more costly to maintain old bike.

(*If it actually exists at all)

[Graham T]

Not entirely surprising really considering the economic climate.
Its hardly going to be good for bike shops though surely?
As bike become more expensive people will be more likely to put up with what they have already rather than blow a whole load on a new bike

[grum]

So how does this relate to the massive discounts on 08 meta 4s from realcycles? 

[steveb]

I'm just really nice.

[grum]

nice enough to do the same on meta 5s? 

[steveb]

There are hardly any left in the UK already, so can't see anyone doing much more than say ten percent on them.

[Crag]

Merlins are still knocking out cheap 'custom' build Meta 5's.  If you can live with Revs on your bike then worth a look.

Glad I got my bike when I did, stick 20% on top of the RRP of my MetaXT rather than the 10% off then I'd have definitely not bothered. (£2280 vs £1710)

Lean times ahead maybe.  It'll be interesting to see if the lbs start having to fight for market share a bit more rigorously however, meaning better prices for us consumers. (granted, it may also mean less shops to choose from and nobody wants that)

[nunomelo77]

This entire global crisis or what you want to call it is, in my humble and ironic view, no more than economic speculation. There are more oil reserves than ever before. YES, THAT IS THE TRUTH! (true that the demand, especially from asia is increasing esponencially), taxes over oil derived products increse (Who is gainning with that, I wander!?...), and we all, like good and resignated sheeps walking towadrs the slaughter house say nothing and DO nothing. THIS S**T REALLY STINKS!!! Look at crazy Dubai empire and Saudi Arabia - those f***ers are laughing at us and we say "Damn, need to start saving those extra pennys to buy a new rig next year"!!! what is that?!?!
I'm not an anarchist, nor human or animal rights activist (probably MTB activist, if that exists ) but I say F**K THIS PRICE RISE AND ALL SPECULATORS!!! Like Graham T wrote, bike shops are not complaining, that's for shure!!!

KEEP DOWNHILLING AS FAST AS YOU CAN - IF YOU'RE NOT CRASHING YOU'RE NOT RIDING FAST ENOUGH!!!

[steveb]

I agree with you 100%. We seem to be entering a new era of Thatcherism type greed, where the rich are getting stupidly richer at the expense of the rest of us. I agree the "credit crunch" and high oil prices is caused by speculators, nothing more nothing less. The scary thing is this time round it seems to be governments that are at the heart of it.

Regards how shops, and importers, feel about it, I think everyone is split. Some shops say bikes are too cheap and welcome the price rise, but then some say higher prices mean less people buying new, so it's swings and roundabouts. I suspect in real terms it'll make little difference to how much profit a bike shop ends up making, yes we'll make a few quid more for every bike sold, but then we'll most likely sell less bikes!

[tron]

Just a thought: If you compare the price you pay for a high-end bike today, or in 2009, to the price you had to pay for a high-end bike in 1996, and compare the bike prices to salaries today and in 1996 - do you have to dig deeper in your pockets to afford a high-end bike in 2009?

In Norway we have the highest fuel prices in Europe, although we're probably the biggest oil nation. However, compared to salaries, we use a smaller percentage of our income on fuel than in any other European country. 30 years ago when fuel prices were ridiculous low we used more of our salaries on fuel than now.

People will allways complain about prices, but it's quite "comforting" to put things in perspective and compare rising prices to rising salaries.

[grum]

There are hardly any left in the UK already, so can't see anyone doing much more than say ten percent on them.

Eek!

Oh well that's useful info anyway, cheers!

[nickfry]

One way to save some of your hard earned cash is by buying via the cyclescheme. (www.cyclescheme.co.uk).
Basically you save around 43% off the first £1000 of the price of your bike. Trouble is your employers have to be signed up to it.
Made my 55 custom much more afordable!!