Please "Like" and also " Share" to keep the conversation going. More insights from my perspective with 30 years of experience in the cycling Industry in the playlist: ua-cam.com/play/PLdfUXv0-z1u42bZpCLWmT2VtNW-7AIf2A.html Like the shirt? Get yours here: i-know-a-guy-bicycles.myspreadshop.com/ 15% Off Lithium Products that I used in this video: lithiumautocare.com/?ref=IKnowAGuyBicycles Tools and Products Featured (Affiliate): Shop Tools to Parts That I Use in the "Garage Shop": www.amazon.com/shop/iknowaguybicycles
No surprise. Prices are still high. As long as new bikes cost more or the same as a brand new susuki honda or yamaha motorcycle hard to justify a bicycle
I get what he’s saying also. Since the the bike industry started gouging @2018 thru last year, they have tried to justify prices with pointless comparisons to “works” motorcycles vs “high end” bikes or scales of manufacturing differences, blah, blah blah. All you have to do is compare the marketing budgets of trek, specialized, or even pivot from the 90s to 2020 and you will see the margins ballooning in real time. It’s a discretionary luxury goods market with a markup to match. Time for the age of direct to consumer with razor thin margins. $2000 carbon frame/fox suspension/ trail bikes for everyone.
It's not price gouging. We have had the most monetary inflation in the history of the US dollar over the past 4 years. Prices will not go down, they can't. All that's going to happen is more and more people will lose their jobs as companies cut overhead. The economy is completely ducked, it never recovered from the 2008 collapse, it's been hidden in various ways that have stopped working. Primary way it's been hidden is by the US Gov creating ANOTHER housing bubble by giving management of US pension funds to financials like Blackrock, who then use these funds to buy up real estate and create artificial GDP growth.
@@johnnycab8986the bike industry has been gouging long before inflation hit. I agree with everything you said except that the bike industry has been gouging long before inflation hit in 2022. The difference is that now the consumer is experiencing maxed out credit, job loss, inflation has deprioritized discretionary spending. As a result the bike industry is now about to experience the deflationary effects of recession.
Living and riding in and around Sacramento I have witnessed a dramatic change in buying habits. At least 50% of riders I see are riding large tire e bikes. The market has changed!
"Pigs get fat but hogs get slaughtered." During the pandemic with unreal demand and very low supply, prices blipped to unsustainable levels. For some reason the bike industry felt that it was there time to feed off the consumers long term and missed that fact that it was a blip.
I don't think it's the demand for used bikes has dropped. It's the demand for used bikes in the four figure range barely existed and now the market completely dropped out from under itself. No one is buying $3, $4, $7k used bikes when you can get a new bike for the same price. Or an older bike that's still a great bike for a lot less. IMHO, no one is buying $5,000 bicycles unless they make money with them (athletes, pros, etc.) Anyone else is using it for utility, exercise, fun-value, I could see sub $3k but at this point there's no point to buying a stupid expensive bike. And, a bike from 4-8 yrs ago that's still VERY serviceable with great components is 1/2 what they're charging today for the same thing. Everyone cashed in on the big cycling ego market and now that the economy isn't doing so hot, no one's got money to blow on fancy toys to keep up with the next spandex-clad bike nerd. There are thousands of 4-figure bikes on offerup here locally and they just sit and sit and sit.
I agree with almost all you said here. however, I don't make a living with my bike and built my own open mould frame for racing with high end components and ended up with a 22.something pound xc rocket that is the same quaity as a big name brand that at he same weight and components would cost $8,000 to 10,000 USD
Just wait until multiple bike companies go out of business. High prices and a saturated market doesn't end well. The bike industry did it to themselves.
This isn't sad News. This is proof the consumer is winning. We are not going to settle for the current pricing on cycling. It's become way too expensive for such a simple thing that has been a favorite past time for people for centuries. I've been doing this for a long time and even I wouldn't buy from TPC because I thought they over-priced the stuff I was interested in. How many more companies are going to fail before these companies pull their heads out of their greedy butts.
Its NOT good. It's more and more people losing their jobs. There will be no correction of prices, the prices are high because of inflation. Companies have no way to deal with the insane inflation that's happened over the past 4 years. Prices will not come down, companies will cut overhead until they go out of business like this. This is happening in all industries. The global economy is DUCKED. All that's going to happen if less people being able to afford anything because of loss of wages/employment/further decline of the economy below the top 5% of earners. The geniuses running the US economy destroyed the middle class by opening trade with China in the 70s, this leveraged labor against the middle class of the country and made incredible profits for the investors. Everyone took on insane debt to continue the charade, then Dodd-Frank happened, the absolute zenith of reckless debt which destroyed the GDP of the US. It's been -2% since, it's just been hidden by the government creating ANOTHER housing bubble with awarding US Public pension funds to financials like Blackrock, who buy up real estate with these funds to artificially inflate real estate/create phony GDP. It's made investing in real estate attractive to other top earners, who then use the profits from this to reinvest in the stockmarket and prop it up with speculative/"phoney" earnings.
Here in Idaho Falls, Idaho, in 2024 we have lost Fitzgerald's Bike Shop, the Bike Shop lost it's funding source and had to move to a worse location and are doing poorly, and Bill's Bike Shop is effectively dead. We effectively lost 50% of our local bike shops but our population has increased by about 10% due to the pandemic refugees from the West Coast.
It's because late-model enthusiast bikes are terrible values.. fragile and expensive to maintain - fashion pieces designed to become obsolete. Everything carbon is disposable.
Campagnolo needs to go back to full retro mechanical. They perfected bicycle components years ago. Consumers don't need carbon wheels, disc brakes, electronic shifting, or bother with tubeless tires and they don't want to pay for that crap
What's the cost of commercial paper?? 10%?? Yea, at those rates no one wants to leverage that buyout. There is a lot of room in the market for a local-local used bike store but from the prices I'm seeing on bikes even they are getting stretched out. I'm riding a $90 Trek SL1000 with $35 worth of platform pedals. I think $300 is the used bike price point that a lot of people would be comfortable with. High end bikes don't have a big market right now, even used.
The price demand for used bikes has dropped significantly-about half from a year ago. There just aren't that many buyers at the moment or looking for that special must-have bike (used).
Right? The companies spent years convincing people they need a new bike each year, then started making more and more bikes designed to be disposable that got more and more expensive. Then people snapped out of it and realized there is so much value in the used market, as well as steel and titanium frames made to last getting some recognition.
I have been a customer of the The Pro's Closet for years. They recently have gotten away from selling less expensive, older bikes (metal, rim brake). Every bike they were selling recently was newer and more expensive. I stopped buying used bikes from them.
I had a feeling that TPC was on its deathbed. The website had a banner stating it wasn't accepting any new bicycles. Hopefully, platforms like Buycycle can help fill the void.
Who would have guessed used tennis-rackets-with-wheels would be a dead end? Too bad they do not have some used steel Mosers with Campy Record 8 for sale.
Next block over, early last year, Specialized Bicycle Components bought Pearl Izumi's vacant 55,000-square-foot building. (I guess I didn't even notice.)
C'est La Vie. With their price structure being as high as they were, I was unimpressed. With that said, I had purchased quite a few bikes over that time frame, includuding several custom frames, built to my blueprints and constraints. The industry has had many contractions over the years. Look at the manufacturers that have thrown in the towel over the last 3-4 years. Colorado Cyclist... I purchased many parts from them, going back to their days of paper catalogs to recently.
Performance/Nashbar is still around (at least the name is). It's owned by the A Main Hobbies enterprise, and they have a warehouse and retail store in Chico, CA.
Crazy times indeed. Glad you brought up Schwinn, despite different eras and circumstances for Schwinn's demise still remains one of those sad moments in the bike industry for me. There are still a few shops in the Midwest that managed to survive the Schwinn dealer aftermath, dusting themselves off and adapting. Can't help but wonder with a strong focus on the workshop, keeping track of the overheads, developing strong local customer relations, more people riding than ever, this point in time is just another storm to weather. Nice bike table, very cool!
Yes agree on no surprise. I have been in small business's for 30 plus years, not in the bike industry. Did we have outstanding profits through Covid, Hell Yes, did we hire a ton of employees and buy a bunch of crap.. no. Grew financially and banked it.
Gradually, then all of a sudden. You don't know how bad it is because no company is going to let you look under the hood until the engine blows. There's a lot more companies out there that seem like they're surviving, but in reality hanging by a thread. This is how you get the perception parotted by a lot of people that the economy is resilient.
In order to deal with blackmail from the big manufacturers to purchase an excessive amount of merchandise that can't be sold fast enough in the local bike shop, in Germany the cooperatives appeared like ZEG (i.e. central purchasing cooperative). ZEG has hundreds of local independent bike shops, but with a central purchasing that can buy inventory at bulk prices and serve their local bike store members. That's how they can stay profitable with low local inventory and still make a profit. The ZEG model has its roots in the agriculture domain where local farmers cooperated in buying expensive tools and machines and after harvest sold their products to the cooperative to bigger markets.
The Bike COOP started to do that but failed. They ended up just being a value prop for Advertising and Shipping, plus some other resource tools. What I would like to see is a COOP that provides higher purchasing power for small or garage/mobile service shops that the wholesalers can't get you on purchasing limits and shipping. Ummm maybe that I Know A Guy can be that portal.
News like this hits hard. How's the lil guy supposed to even open a shop when the market is locked up on every street corner and companies like this that were seemingly doing great are dropping like flies
Pro bike kit, Pros closet, Wiggle, Chain reactions cycles there has been a bunch of these closures in Europe also, the sport or road cycling is in trouble it is elite level or nothing.
That's good to know; thanks for sharing. Over here, we had Colorado Cyclist, Planet Cyclery, and Stages go under. Stages were approved to be sold to Giant under their bankruptcy.
Love the shirt!! I was just at Revelstoke bike park and fractured a rib in a crash. My wife said the first thing I did was check on my bike and wipe all the dirt off while checking for scratches. She's like, you're bleeding!! I'll be ok sweetheart. How's my bike?...
Makes me wonder what works.. I'm thinking of Trek going into this business with their second hand program. Will it go this way? If you look up articles in the Daily Camera (Boulder) there were other funding rounds in their past less but still in the millions. Those guys burned through a lot of bucks.
Please "Like" and also " Share" to keep the conversation going. More insights from my perspective with 30 years of experience in the cycling Industry in the playlist: ua-cam.com/play/PLdfUXv0-z1u42bZpCLWmT2VtNW-7AIf2A.html
Like the shirt? Get yours here: i-know-a-guy-bicycles.myspreadshop.com/
15% Off Lithium Products that I used in this video: lithiumautocare.com/?ref=IKnowAGuyBicycles
Tools and Products Featured (Affiliate):
Shop Tools to Parts That I Use in the "Garage Shop": www.amazon.com/shop/iknowaguybicycles
No surprise. Prices are still high. As long as new bikes cost more or the same as a brand new susuki honda or yamaha motorcycle hard to justify a bicycle
The motor bike vs pedal bike is an invalid comparison.
@@solaradam7470I get what he’s saying
I get what he’s saying also. Since the the bike industry started gouging @2018 thru last year, they have tried to justify prices with pointless comparisons to “works” motorcycles vs “high end” bikes or scales of manufacturing differences, blah, blah blah. All you have to do is compare the marketing budgets of trek, specialized, or even pivot from the 90s to 2020 and you will see the margins ballooning in real time. It’s a discretionary luxury goods market with a markup to match. Time for the age of direct to consumer with razor thin margins. $2000 carbon frame/fox suspension/ trail bikes for everyone.
It's not price gouging. We have had the most monetary inflation in the history of the US dollar over the past 4 years. Prices will not go down, they can't. All that's going to happen is more and more people will lose their jobs as companies cut overhead.
The economy is completely ducked, it never recovered from the 2008 collapse, it's been hidden in various ways that have stopped working. Primary way it's been hidden is by the US Gov creating ANOTHER housing bubble by giving management of US pension funds to financials like Blackrock, who then use these funds to buy up real estate and create artificial GDP growth.
@@johnnycab8986the bike industry has been gouging long before inflation hit. I agree with everything you said except that the bike industry has been gouging long before inflation hit in 2022. The difference is that now the consumer is experiencing maxed out credit, job loss, inflation has deprioritized discretionary spending. As a result the bike industry is now about to experience the deflationary effects of recession.
Living and riding in and around Sacramento I have witnessed a dramatic change in buying habits. At least 50% of riders I see are riding large tire e bikes. The market has changed!
Greed and companies do not see the future. Ridiculous if you are selling bikes. Us consumers saw it coming. Were the bike folks drunk???
"Pigs get fat but hogs get slaughtered." During the pandemic with unreal demand and very low supply, prices blipped to unsustainable levels. For some reason the bike industry felt that it was there time to feed off the consumers long term and missed that fact that it was a blip.
@@Mgrant8163well said
I don't think it's the demand for used bikes has dropped. It's the demand for used bikes in the four figure range barely existed and now the market completely dropped out from under itself. No one is buying $3, $4, $7k used bikes when you can get a new bike for the same price. Or an older bike that's still a great bike for a lot less. IMHO, no one is buying $5,000 bicycles unless they make money with them (athletes, pros, etc.) Anyone else is using it for utility, exercise, fun-value, I could see sub $3k but at this point there's no point to buying a stupid expensive bike. And, a bike from 4-8 yrs ago that's still VERY serviceable with great components is 1/2 what they're charging today for the same thing. Everyone cashed in on the big cycling ego market and now that the economy isn't doing so hot, no one's got money to blow on fancy toys to keep up with the next spandex-clad bike nerd. There are thousands of 4-figure bikes on offerup here locally and they just sit and sit and sit.
I agree with almost all you said here. however, I don't make a living with my bike and built my own open mould frame for racing with high end components and ended up with a 22.something pound xc rocket that is the same quaity as a big name brand that at he same weight and components would cost $8,000 to 10,000 USD
I'm starting to sell used units and parts, but way lower pricing. Great for the buyers.
Just wait until multiple bike companies go out of business. High prices and a saturated market doesn't end well. The bike industry did it to themselves.
They deserve to reap the fruits of their labor. Bye-bye!!
💯 and I am a weekend worrier.
This isn't sad News. This is proof the consumer is winning. We are not going to settle for the current pricing on cycling. It's become way too expensive for such a simple thing that has been a favorite past time for people for centuries. I've been doing this for a long time and even I wouldn't buy from TPC because I thought they over-priced the stuff I was interested in. How many more companies are going to fail before these companies pull their heads out of their greedy butts.
Hopefully this means more choices of simple high quality bikes and parts will return.
Only time will tell.
Its NOT good. It's more and more people losing their jobs. There will be no correction of prices, the prices are high because of inflation. Companies have no way to deal with the insane inflation that's happened over the past 4 years. Prices will not come down, companies will cut overhead until they go out of business like this. This is happening in all industries. The global economy is DUCKED. All that's going to happen if less people being able to afford anything because of loss of wages/employment/further decline of the economy below the top 5% of earners.
The geniuses running the US economy destroyed the middle class by opening trade with China in the 70s, this leveraged labor against the middle class of the country and made incredible profits for the investors. Everyone took on insane debt to continue the charade, then Dodd-Frank happened, the absolute zenith of reckless debt which destroyed the GDP of the US. It's been -2% since, it's just been hidden by the government creating ANOTHER housing bubble with awarding US Public pension funds to financials like Blackrock, who buy up real estate with these funds to artificially inflate real estate/create phony GDP. It's made investing in real estate attractive to other top earners, who then use the profits from this to reinvest in the stockmarket and prop it up with speculative/"phoney" earnings.
@@johnnycab8986Too bad, they should have used a little foresight.
@@daviddoucet2220 Not the way things work in a global economy. This is happening everywhere, not just the bike industry.
Why go to Pro's Closet when BUYCYLE has much better deals. I'm not buying a used bike that costs just a little less than a new one.
They were too focused on PRO than the new cycling rider.
Here in Idaho Falls, Idaho, in 2024 we have lost Fitzgerald's Bike Shop, the Bike Shop lost it's funding source and had to move to a worse location and are doing poorly, and Bill's Bike Shop is effectively dead. We effectively lost 50% of our local bike shops but our population has increased by about 10% due to the pandemic refugees from the West Coast.
Oh, who gives a crap about local business? local bike shops?
Send more Billions go Ukraine!
Give money to illegals!
Give Billions to Israel!
Thr Gamestop of cycling going out of business? Say it isn't so 😂
Everything in the bike industry is now in complete chaos...and all shit flows downhill.
Looking like it.
They bought high and market dropped…used car dealers are feeling the same pinch now too
It's just not the cycling industry; all recreational categories are affected.
It's because late-model enthusiast bikes are terrible values.. fragile and expensive to maintain - fashion pieces designed to become obsolete.
Everything carbon is disposable.
Whaaat people don’t want to pay top dollar for a used bike 😮
Campagnolo needs to go back to full retro mechanical. They perfected bicycle components years ago. Consumers don't need carbon wheels, disc brakes, electronic shifting, or bother with tubeless tires and they don't want to pay for that crap
Back to basics, love it!
💯, no non professional needs that crap.
What's the cost of commercial paper?? 10%?? Yea, at those rates no one wants to leverage that buyout. There is a lot of room in the market for a local-local used bike store but from the prices I'm seeing on bikes even they are getting stretched out. I'm riding a $90 Trek SL1000 with $35 worth of platform pedals. I think $300 is the used bike price point that a lot of people would be comfortable with. High end bikes don't have a big market right now, even used.
The price demand for used bikes has dropped significantly-about half from a year ago. There just aren't that many buyers at the moment or looking for that special must-have bike (used).
Not surprised at all.
Right? The companies spent years convincing people they need a new bike each year, then started making more and more bikes designed to be disposable that got more and more expensive. Then people snapped out of it and realized there is so much value in the used market, as well as steel and titanium frames made to last getting some recognition.
While sad - nobody is crying about it. Even used bikes are expensive AF! It’s gonna take more of these to get back In shape
They did have a very large missed opportunity by just going back to older and lower priced bikes.
@@IKnowAGuyBicyclesgreed. One one shed a tear
I have been a customer of the The Pro's Closet for years. They recently have gotten away from selling less expensive, older bikes (metal, rim brake). Every bike they were selling recently was newer and more expensive. I stopped buying used bikes from them.
I had a feeling that TPC was on its deathbed. The website had a banner stating it wasn't accepting any new bicycles. Hopefully, platforms like Buycycle can help fill the void.
Who would have guessed used tennis-rackets-with-wheels would be a dead end?
Too bad they do not have some used steel Mosers with Campy Record 8 for sale.
If Camel toe wins they will probably all go out of business....
Bike prices are stupid. This was inevitable.
Don’t bother shopping for new chains. Someone bought them all. Hmmm. Still an open box campy
I just looked, and there is not too much left. Did you buy all the wax?
Next block over, early last year, Specialized Bicycle Components bought Pearl Izumi's vacant 55,000-square-foot building. (I guess I didn't even notice.)
They should've listened to the public. Charging new prices for used bikes. No shocked.
C'est La Vie. With their price structure being as high as they were, I was unimpressed. With that said, I had purchased quite a few bikes over that time frame, includuding several custom frames, built to my blueprints and constraints. The industry has had many contractions over the years. Look at the manufacturers that have thrown in the towel over the last 3-4 years. Colorado Cyclist... I purchased many parts from them, going back to their days of paper catalogs to recently.
Performance/Nashbar is still around (at least the name is). It's owned by the A Main Hobbies enterprise, and they have a warehouse and retail store in Chico, CA.
Crazy times indeed. Glad you brought up Schwinn, despite different eras and circumstances for Schwinn's demise still remains one of those sad moments in the bike industry for me.
There are still a few shops in the Midwest that managed to survive the Schwinn dealer aftermath, dusting themselves off and adapting.
Can't help but wonder with a strong focus on the workshop, keeping track of the overheads, developing strong local customer relations, more people riding than ever, this point in time is just another storm to weather.
Nice bike table, very cool!
Yes agree on no surprise. I have been in small business's for 30 plus years, not in the bike industry. Did we have outstanding profits through Covid, Hell Yes, did we hire a ton of employees and buy a bunch of crap.. no. Grew financially and banked it.
Had it coming. Greed.
No one needs hydraulic disc brake, electric shifting and tubeless tire if you are not processionals.
They took $100M in venture capital. Moved to a massive facility. Huge bet on reselling used gear.
Gradually, then all of a sudden. You don't know how bad it is because no company is going to let you look under the hood until the engine blows. There's a lot more companies out there that seem like they're surviving, but in reality hanging by a thread. This is how you get the perception parotted by a lot of people that the economy is resilient.
They offered you short sale prices on your bikes and then charged the consumer new, retail prices on your used bike. WTF was going to happen?
Picked up an Allied frame on Pink Bike for a grand. Who is paying these prices from TPC?
Andy non-professional spend over $2,000 on a bicycle is crazy.
Sad to see that they’re going under. I bought a used 2019 Trek Domane SL frame set from them a couple years ago.
Bummer, I've bought a lot of parts from them.
I’m sure Nick Martin did very well with the original sale of TPC…
$5000 for a used bike, C'mon. No one shed a tear.
Next up, so call big brands
Had it coming
Nothing left on medium sizes. Must have sold them all
Way too expensive. Good riddens
Buy Bicycle and Cycles Limited
Bummer. I picked up a used e-mtb from them last month. Saved 50% off retail
It is sad to see them go. They actually have referred customers to me. At least some of their staff.
Yep
In order to deal with blackmail from the big manufacturers to purchase an excessive amount of merchandise that can't be sold fast enough in the local bike shop, in Germany the cooperatives appeared like ZEG (i.e. central purchasing cooperative). ZEG has hundreds of local independent bike shops, but with a central purchasing that can buy inventory at bulk prices and serve their local bike store members. That's how they can stay profitable with low local inventory and still make a profit. The ZEG model has its roots in the agriculture domain where local farmers cooperated in buying expensive tools and machines and after harvest sold their products to the cooperative to bigger markets.
The Bike COOP started to do that but failed. They ended up just being a value prop for Advertising and Shipping, plus some other resource tools. What I would like to see is a COOP that provides higher purchasing power for small or garage/mobile service shops that the wholesalers can't get you on purchasing limits and shipping. Ummm maybe that I Know A Guy can be that portal.
I've bought and sold thru TPC and enjoyed the service they provided.
News like this hits hard. How's the lil guy supposed to even open a shop when the market is locked up on every street corner and companies like this that were seemingly doing great are dropping like flies
Local bike shop starts selling Chinese brands. that's how
Pro bike kit, Pros closet, Wiggle, Chain reactions cycles there has been a bunch of these closures in Europe also, the sport or road cycling is in trouble it is elite level or nothing.
That's good to know; thanks for sharing. Over here, we had Colorado Cyclist, Planet Cyclery, and Stages go under. Stages were approved to be sold to Giant under their bankruptcy.
The idea that big money could be made selling used bikes was stupid from the start
💯
Dang it! I didn’t even think of wax and lube.
I only see 3 mtbs on the pros closet now.
Looks like they have been liquidating over the summer knowing they will be closing in the fall. The announcement and inventory levels show that.
Thanks!
Thank you so much!
Id imagine that they have a lot of bikes to liquidate
Almost all gone. They went fast once the deep price cuts hit.
Looks like they have been liquidating over the summer knowing they will be closing in the fall. The announcement and inventory levels show that.
Love the shirt!! I was just at Revelstoke bike park and fractured a rib in a crash. My wife said the first thing I did was check on my bike and wipe all the dirt off while checking for scratches. She's like, you're bleeding!! I'll be ok sweetheart. How's my bike?...
I get a lot of stories out of people when I wear it. You can get your own here: i-know-a-guy-bicycles.myspreadshop.com/
Crazy all these bike companies are closing. I can’t wait to hear about stages my favorite power meter!!
It's a big shake-down and will keep going for the next year or two. I will be talking to John about that coming up soon.
@@IKnowAGuyBicycles I wonder if the old staff will be brought back. They had excellent customer service.
Makes me wonder what works.. I'm thinking of Trek going into this business with their second hand program. Will it go this way?
If you look up articles in the Daily Camera (Boulder) there were other funding rounds in their past less but still in the millions. Those guys burned through a lot of bucks.