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State of the industry: a running thread
- Thread starter al-onestare
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If it's manufactured abroad and imported, the homeland tax and duty man will have creamed off a bit. It is complex though with definitions related to raw material, unfinished goods or finished goods. Logistics companies if I remember right actually don't work for free. Safety certification, marketing, and R&D too adds on top of the Cost of Sales for a manufactured item.
Shame we don't have an industry inside accountant point of view to contribute and give a better answer to your good question. I would imagine it is still fairly slim what they pocket - 20% tops maybe?
Hey, I resemble that remark!
I happened to walk past my lbs today.. I've used them in the past for bits and bobs and they are a decent bunch. They've always appreciated my retro steeds when I've taken them in. Bought kids bikes from them so I'm no tyre kicker.
I was amazed to see the price of the bikes they had in the window. One that stuck out was an alivio shod specialised. £1,100. Wtf? It was a shiny red, alu framed bike, not an engine I don't think, just a hybrid looking affair.
I was shocked. It's been a very long while since I've bought a new bike for myself, but having built (well still building) a thoroughly modern bike with a mix of new (frame, brakes, wheels and tubeless tanwalls, saddle, stem, all decent kit), and used ,(dvo demo forks, xtr 11x gearing, ethirteen carbon cranks, dropper, bars) and I'm in for less than the cost of the low rent spesh.
I love a good lbs, the advice, help and expertise is worth paying the premium for imho. Much prefer that then the digital, hands off experience. But if the rrp of bog standard bikes is so high, I fear for the industry. If distributers, big online retailers and the humble lbs can't make ends meet, what are we going to be left with? Cheap, Chinese tat? Thank goodness for retro bikes, they have soul, well made frames and lasting components (generalising) as opposed to the expensive, planned obsolescence of the modern day bikes and parts.
I was amazed to see the price of the bikes they had in the window. One that stuck out was an alivio shod specialised. £1,100. Wtf? It was a shiny red, alu framed bike, not an engine I don't think, just a hybrid looking affair.
I was shocked. It's been a very long while since I've bought a new bike for myself, but having built (well still building) a thoroughly modern bike with a mix of new (frame, brakes, wheels and tubeless tanwalls, saddle, stem, all decent kit), and used ,(dvo demo forks, xtr 11x gearing, ethirteen carbon cranks, dropper, bars) and I'm in for less than the cost of the low rent spesh.
I love a good lbs, the advice, help and expertise is worth paying the premium for imho. Much prefer that then the digital, hands off experience. But if the rrp of bog standard bikes is so high, I fear for the industry. If distributers, big online retailers and the humble lbs can't make ends meet, what are we going to be left with? Cheap, Chinese tat? Thank goodness for retro bikes, they have soul, well made frames and lasting components (generalising) as opposed to the expensive, planned obsolescence of the modern day bikes and parts.
Ian I think that's one of the many problems going on.
Cyclist's know the difference between Alivio and XTR and during the covid frenzy lock down everyone on the furlough scheme spent their hard earned (Ahem) on bikes, on any bike, no matter how expensive it was.
All the cheap bottom end stuff out there is still sitting around as the furlough cyclist's are long gone.
Cyclist's know the difference between Alivio and XTR and during the covid frenzy lock down everyone on the furlough scheme spent their hard earned (Ahem) on bikes, on any bike, no matter how expensive it was.
All the cheap bottom end stuff out there is still sitting around as the furlough cyclist's are long gone.
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'you spent how much on a pushbike??'
...is a question I no longer respond to
...is a question I no longer respond to
I made some similar points earlier. Someone has to be making serious bank somewhere as they can't all be poor. I suspect the answer is increasing financialisation across the entire sector eg bike shop owner can't make it work because of high rents etc to manufacturer struggling due to using accounting approaches which have come home to roost because of rise in interest rates and inflation. Shipping cost increases may be another factor as might be private equity loading previously viable companies up with loads of debt.
As an aside, here's Hambini's predictions:
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Yeah, Specialized (and others) have some horrific rrp’s. I was looking at a Chisel that had 50% off. The components were poor for a 1k bike, let alone 2k!
I was slightly wrong. It was I think a hybrid style ebike with deore gearing. Reduced to £1600 from £2600. Still like you've said, a lot of dough even after the discount as the bike isn't all that in terms of spec, OEM parts etc. Maybe I'm living in a different world but since the reduction in the number of rings up front, the costs of chainsets has gone up not down (less is more???) And the price of cassettes and chains the same. Even tyres have become madly expensive for what they are, a fork service costs nearly as much as a car service, a bleed of 2 brakes costs £100+ locally (thankfully I can do most things myself). It's a very expensive hobby where what you have now will be obsolete in a few years, rendering the value of what you own a lot less.
Retrobikes are the way
Retrobikes are the way
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