Bicycle Industry in trouble: How can this be fixed? | Exclusive Analysis 2023
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- Опубліковано 23 лис 2023
- These are from my experiences and findings working every day in this industry, I know every store can have a different outcome from this and this does not speak from everyone but this is from people reaching out to me and talking to other stores and people in the industry as well.
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These are my experiences working in this industry every day, This is what I see and hear from other people in other stores all over the world who reach out to me and give me there input as well. I know everyone's bike shop experience and results are always different and not everyone is the same, but I share my information with you all hoping for you to get more knowledge about our industry and hopefully benefit you in the future.
The prices from Merlin are only 5 to 10% under what their prices have been for most of the year. It's not as big of a Balck Friday discount as it would appear, Merlin is always that cheap.
Yo don't tell them about Merlin! That's my secret for when I can't access product! 😂😂😂
@@diehardbikes I've been buying from them on and off for years, after Probikekit completely did me over
Chris Miller and Jesses Coyle will love this title and pic😂
Biden is destroying everything!!!!!!!!!!
The consumer is financially tapped out. Bicycles are not a necessity and not high on the list when people are more focused the basics just to get by.
Bikes over basics 💪💪💪
honestly truth, the middle class and entry level is tapped out hard core
💯 %! If you have to decide between putting food on the table VS buying bike related at the end of the day, a bike is a bike is a bike.
Biden and democrats destroying everything!
I only bought a new bike at these shit prices because mine was stolen, otherwise I had zero reason to
Even with the “deals”, the inventory is still overpriced.
There are obviously a lot of factors here. But one important issue is that the perception is that major bike brands - especially Specialized - got greedy. We remember that HUGE price hikes, just because demand was high.
Memories can be long.
The sl7 was jumping in price every couple of months, it was ridiculously greedy
It is true that there were certainly jumps in prices. But considering that the top end SL4 back in 2012, was about 12k, and now it's almost 15k, the fact that the inflation amount has significantly outpaced the price increases of bikes means bikes prices stayed low for a while. Covid definitely brought them up. And I dont think it was greed. Specialized is hurting. So is every other brand.
Specialised are the poster boys of the greed that happened
Greed is a disease.
Greed has nothing to do with it. It came down to supply and demand and what people were willing to pay. Now the market is correcting itself. Nothing new or special about the bike industry as they are a BUSINESS first and there only to make money. People get emotional about all sorts or products and cycling is no exception.
Chris Miller described this thumbnail perfectly 😂
came to say this 😂 - I assume there was some prompt taken
🤭
As soon as saw the thumbnail smiled and thought, well played GC, well played.
literally chris miller inspired
The SRAM red full group is not $1k but almost $3k. Don’t be fooled , read the description and see for yourself , the cheaper offers are for incomplete groups ( no crank, or no brakes or odd sizes). Plus some stuff is back ordered . This contradicts the argument seller has too much stock. Let’s be smart here and do our own homework.
I feel like this dude goes full on End is Near, we had some old stock, we sold it under our buying price, i got free cash flow i can do regular business now, demand is good in Czechia now thx to warm weather, who is fucked are bike stores that have shitton of stock and still think they can sell at least at their buy price... Also there are some models that are overstocked at importer/manufacturer and also at bike stores and theres also 2024 models you cant buy anymore in fuckin January... bro this is covid all over again but because everyone made little to no new models...
It's sad the difficulties the cycle industry is having, that being said it was totally self inflicted.
The massively bloated prices, even pre COVID could never last. Additionally, the inability to predict a downward turn after a peak in sales during COVID, is just terrible business foresight. It's basic economics.
It's amazing HOW MANY INDUSTRIES made this same mistake. I worked with an Ed-tech company that thought online training was going to go forward with the same volume growth it experienced in the pandemic 🤦♂️
@@samdumcum unbelievable! I'm bang average in terms of intelligence, but at times people make me feel like Einstein.
Bikes are just big man's toys let's just face it. There aren't so much "technology" packed in. The bike brand got crazy addicted with "aerospace" marketing is something that we have already familiarized but seeing the components brands go crazy too is something new... At least for me. For $2000 you can buy a gearbox for a car, which lasts decades, with stella performance if you count the 2000-8000 rpm of a engine compared with a 60-80 rpm human leg. Even the "electronic" shifting, it's just... well... TOYS to be honest. What's so hard with a step motor ??? Don't forget the horrible reliability of such thing. How many times a chain just "drop off" during the key moment of the Tour??? This is what you pay top dollars for. What's the last time an F1 car "drop off a chain" to lose a race??? Or in the Dakar rally??? Mechanics do happen in those vehicles but look at the real extreme conditions the frequency of that happens, is the Tour sprint at 50-60 Kph 100 rpm 1-2 horsepower for 10-30 seconds so "extreme" that it happens almost every race every year ???? Truth is the component is just a joke. If you race at highest level you just ride whatever sponsor gives you, and for the rest of us, let's just focus on the fitness part of the game. The biggest upgrade I have purchased is me myself from 150W to 300W. Save that $2000 for some decent stuff for yourself. Get some plane tickets, do those epic rides. Those bike stuff just don't worth it.
I think there's a fairly large disconnect in what customers want and can afford and what manufacturers are selling.
I bought my entire mechanical ultegra carbon fiber bike for less than the cost of just the ultegra drivetrain kit today. The new ultegra is certainly better, it's got digital tech, it's got more gears, lighter, aerodynamic...
But that's not what the average rider needs. Pros need it, but the average customer is *not* a pro and will not be able to appreciate those minimal gains. If I was buying a road bike today, I wouldn't bother looking for something carbon at all, I'd go straight for an older metal one - because that's the most I can say I should reasonably be spending on today's prices.
And I'm not saying this as "a bike is a toy", it's my sole means my transportation. I hope the big players like Shimano start to realize the middle-ground between price and performance has been completely neglected, meaning customers will either underpay or buy used, or not buy at all.
it is truly a matter of what peoiple want a need and the industry does a great job of marketing the new bieks too look so amazing so we have these people who do pretty well in life but think they need a high end bike and splurge on something that does not do anything for them or could easily get similar performance from a cheaper bicycle but they want the look or maybe something like there friend got
In Australia relative low tech high end bicycles cost more than than considerably more tech loaded motor cycles from brands like Honda and Suzuki, even consumables like tyres for bicycles can cost more than car tyres. Carbon fibre is no longer a new wonder material, at my scrap yard it has a value of zero dollars. Also at some point the sustainability argument has to come into this industry how many bikes do we really need. And finally how much Marketing BS can we take.
Sometimes children's toy car charges more than a real car. It's just the same thing. In my local parks, your own bikes are not allowed, however there are "official" rental tandem bikes that charges about $15 usd/hr, and small snail speed golf-cart like EVs for $30 usd/hr. Remember that's per hour!!! That's more expensive than the price to rent a real car, Volkswagen, Ford, GM, Honda, Nissan... you name it, for 24 hours!!! That's what bike industry is like, and a lot of people are just too blind to see.
Exactly, how much bikes do we actually need, especially higher end bikes? Most people who actually need bikes (commuters, delivery people, etc.) are not riding expensive bikes, these people mostly ride cheap department store bikes. Higher end bikes are a luxury item, nice to have, bot not absolutely necessary, and when the economy is not doing well, and people start worrying about basic necessities, expensive bikes sales plummet.
@@independentthought3390this is part of the problem the world does need a lot more bikes. Real commuters around me have good steel bikes or mid range bike shop bikes. Because of the bad experiences they had with department store trash bikes.
Real issue is the guys buying high end bikes treat them like disposable objects, upgrading every 1-2 years. These things can last a very long time if you treat them right. The noobs and dentists with a 200w ftp are ruining cycling
These “huge” sales are barely bringing bikes back to reasonable prices. They’re way over where they were 5 years ago, inflation adjusted.
just bought my second pair of winspace wheels and used your 10% off code on top of the sale price. winspace gets it right with top notch wheels comparable to roval, zipp, hed, shimano ,easton, etc. thanks gc!
yea there deals right now are insane!!! thanks so much
I am a business owner in an industry continuing to evolving and be affecting by the modern social living and economy. Comparing anything with the past or how used to be is futile and meritless , one must find ways to be relevant and competitive at the present time or near future. I love biking, own many bikes, I ride 10k /year, marathons, Triathlons, Grand Fondos etc. there is nothing wrong with bike industry or need to panic but only the shops good at what they do will prevail and stay in business.
The covid checks are gone, now I have to decide if I want to spend 10k on a bicycle or a motorcycle
Motorcycle and prob have change to buy a second hand pre COVID bicycle with little use
free money gone for sure and also low interest rates gone too
Not everyone who walks into their LBS is looking for $1,000 -$15,000 race bike.
The LBSs should bring in some entry level bikes, to give a more affordable options for new riders, like Microsoft options, 7X Shimano Tourney, and 8X Shimano Claris.
Yeah, that should do. That's why I almost only consider Decathlon bikes now. I got a RC120 for my dad years ago with 2x8 Microshift, carbon fork, 9KG for just $300 and got shocked by the quality. With your own super tyre swapped in, I just forget what I'm riding. It feels the same like my $5000 bike. That's more than enough for 99% people, if you swapped in your own deep carbon wheels, then I'd say 99.99%. This is how most things should be done, however nowadays it's just just nobody can sell a bike without addicted with marketing.
Thanks for these insightful videos man. All the best to you and your shop.
Thank you so much for the kind words :)
I think here in the uk, interest rates and finance options are a big problem. Last year, you could get bikes on 4 year interest free finance. Now it’s like 2 year maybe 3 year at best and the money payments are now quite high. Even with the great discounts on Specialized bikes at the moment, people still haven’t got the spare money to get them
Ordered some Black Friday sale wheels from Merlin Cycles yesterday, will arrive today, buy a lot from Tredz too. The RRP prices in local bike shops are crazy, I can only afford to buy coffee and cake or small purchases like tyre levers/chain lube from them. For example I wouldn't pay £129 for an inferior pannier bag from LBS and got a higher quality one online from Decathlon for £25.
Who needs last year snow? To ride a new bike every year? To buy new grouset every season? Who needs 0.1 second faster bike?
So I’ll show up a couple minutes later . Still works 35 years later .✌️😎
^ bikes should last for at minimum a decade or two if maintained well. Theft and accident is another story, but bikes can't be sold like cars or PCs
At some point bike brands began to believe that bikes could "just be financed" like a car.
Well you had all that covid money & stimulus floating around. Well they inflated the pricing. And now the party is over.
If you were sharp. And held your cash and stayed liquid. You right now are KING!
I'm tempted to pull the trigger on a Crux Comp. I look at the Grizl. Just gonna hold out a little longer. I don't believe we have seen how deep the discounts will be yet.
The peak was only recently, we have a ways to go to bottom, keep waiting
we have had financeing in our store for a long time, 12 months intrest free, and a lot of people use it, I mean interest free is like free money if you have th emoney or the means to afford the bike, but iof you do nt make that kind of money then finance should not be an issue
This is the bottom of the barrel. I don't think prices can go any lower. They they do than big companies will start to go out business.
@@GCPerformance18 I definitely get the whole interest free thing. But the economy has gotten very tight and inflation is killing people right now. Disposable income is alot harder to come by. Before peeps look to finance bikes they gotta put food on the table!
I'm just waiting for Garmin to start struggling.... but they probably are not affected by this downturn so much.
Newbs and Rich Doctors are the only ones buying new bikes from major bike companies. Real riders are building up bikes. I suggest buying a top quality carbon frame from a well known OEM manufacturer from Lightcarbon or Dengfu. cost you between $400 - $700.
Grant have you thought about completely ditching Specialized and become Winspace dealer or sell frames from another well known OEM manufacturer from China?
No, il be honest in the youtube space specialized always seems to be this beacon for negativity and obvious there prices are high but in the world of bicycle industry, they are at the forefront of everything, they lead in product launches, equipment clothing shoes and helmet, there in house brand roval is always a nice carbon upgrade as well, we have been with specialized for 25 years, as much as I have my issues with high prices and availability with them, it is a love hate relationship..... big name bike brands run our area and the big name cycling sports are dominated by them. I do sell winspace wheels anmd stuff in store but the brand is not enough to run a bike store for how long we have been in business.... in my area you need a big name company to compete
@@GCPerformance18 I understand. I'm asking just because now Trek and Specialized has cut out the middle man, i.e. local bike shops, and have their own stores. I guess If I owned a bike shop I'd have to be ahead of the game by offering Winspace or Dengfu etc.. complete builds and frames. Their the same if not better quality for way less.
750$ for a 900g semi aero frameset
730$ for a 1300g 50mm carbon spoke wheelset
1400€ for a Ultegra di2 Groupset
100€ for tires
250€ for the rest
F*** the big brands
Bike prices are just waaaaayyyyy toooooooo hiiiiiiiiiigh 💯💯💯
Isn't just bikes that was expensive.. Freaking jerseys and bibs at $200-400 each?! Cmon man freaking rip off
There's an elephant in the room that no one is talking about and that's a lack of participation, cycling has experienced a rapid decline in interest post covid. Some of the deals mentioned here are replicated at the wholesalers, so even a regular independent shop could price match Merlin (in the UK). We have 150 riders on our strava group and I barely see 20 active each week.
Yes indeed..I've witnessed the decline with strava and peloton participants
The bike industry has priced out a large percentage of the population. Imagine if soccer balls quadrupled in price over a 20 year period. Nobody would wonder why participation is down.
Unless you're upper class it's not deemed affordable to anyone else aside from what I call "lifestyle cyclists". People that have a large portion of their income tied up in cycling. Thing is those people usually started with more entry level gear. That entry level gear now costs what a mid tier bike did 15 years ago.
This is a bubble the cycling industry created. Even the factory direct companies played the game.
@@joerapo that's a popular narrative right now but everything has gone up in price. The used market has also stalled, if new bikes were that expensive you'd think the used market would be red hot.
Maybe the bike industry needs to focus on the non specialist market to survive.
@@garybird8646 No it hasn't. Look at the cost of TVs. You can use an inflation calculator and compare prices of bikes now to pre COVID prices and they have outpaced inflation by a large margin. Same can be said for the automotive industry.
@@joerapo the van we have at work was approx 30k in 2018 its now 55k.
I think we went through the aero and the integration era,, now there is no huge development, whats saving 500g? nothing, it's a bit like an iPhone, no froth to upgrade, so me what's different at a consumer level between 14 Pro and 15 Pro 🤷♂, new Dura-Ace Di2 wasn't a leap, Red AXS is now 4 years old, I'm on a Systemsix with Red AXS, what would I even consider upgrading to? nothing would be a leap, Power meters haven't changed and stable for years, quarq spiders look like quarq spider from 5 years ago, headunits look the same, Roam V2 and Bolt V2 were minor spec bumps, even turbo's, I have an OG Neo, why would I updgrade it? nothing anywhere seems an upgrade
There's just not enough differentiation between S-Works SL8 and Pro to justify the massive price increase. Both groupset and frame manufacturers have to rethink their pricing strategy - either figure out how to make a worth while differentiator or basically get used to doing steep discounts end of year every year.
I just bought a 90’s specialized hard rock , for $40.00 on offer up . Looks like it’s got all of 1 mile on it . That ‘s all I need . It’ll probably last me for the rest of my life . I’ll give my 90’s Gary Fisher that I’ve been riding for the past 33 years a break , not that it really needs one . ✌️😎
How can this be fixed? Teach these price gouging opportunistic companies a lesson....Don't support them...Heck you can still buy a beautiful hand made frame from many builders for far less than these gouging companies & their plastic bikes. After a few years of losses if they still exist they regain their common sense & realize they are selling a pedal bicycle not the Star Ship Enterprise
I’d still be on drugs if it weren’t for cycling so for me it’s an important part of my life
That is a great response. Cycling is an amazing outlet for people
And really… at the end of the day? This is all that really matters.
Ali express is my new go to for cheap parts . Hell I’ll say it even cheap frame set . 1000 au for a knock off emonda . 400au for carbon wheel set. I’ve built a dura ace 11 speed sub 7 kg weapon ( weather it lasts I don’t care I’ll buy another one and still be thousands in front) I did my due diligence and got it inspected and it’s all good baby. 3400 for the complete build. ( 700$ second hand groupo)
Me too, now I need to learn to do all my maintenance. I'm going to try to build up a scram axs rim brake bike. Then take it to the shop to make sure it's safe to ride.
@@kimwarner6050 good call. Learn yourself to save money. Let a professional check it. I’m sure you will be fine. I’ve learned a lot from utube, especially the new style stuff. Ie: disk brakes, internal cables. Although I refuse to go tubeless! To much fuss.
Bike makers have a lonnnnnmmmg way to go. I will never ever ever buy new again. Never. New bike prices are insane- especially bikes using higher tier group sets. 105/Ultegra/Dura Ace.
The China marketed groupsets are helping.. but Not enough.
I'm done buying bikes for at least 3 years. The bike industry is going to collapse because many people are just like me. Do they expect people to buy a new bike every year? I'm giving my first road bike i bought to my friend. It's a 2006 trek 1000. I need to thin the heard so I'm donating some bikes. When I buy something I consider that money gone. I'm not trying to recoup any money that I bought on a silly bicycle.
If you are running older mechanical Shimano Ultegra or Dura Ace group sets with rim brakes you need these discounts because you can't find replacement or spare parts.
My thoughts exactly. I've been buying parts from ebay lately.
I have been buying fromMeryl Cycles for a long time. A full SRAM Red group set is not $1k but over $2k. Just read the fine print or what the prices include, not a full groupset or not available in stock. I can go on and on.
It is literally supply and demand. Econ 101. Many people who wanted to ride over lockdowns are back in the brewery’s
yes this is true but all these big companies did not follow the supply and demand logic, they over ordered
Merlin’s prices have always been crazy, but it is because they are selling grey market parts. Forget about your Shimano warranty at a local authorized dealer, you have to go through Merlin. These group-sets were sold to Merlin for full builds but then Merlin sells them directly to consumers, often without the original packaging you find in a retail store. That is where I got my r8100 group set when it first launched.
What’s the shipping time to US? You probably pay for import duty tax if over a certain dollar amount too
@@surfbumb123 I ordered to Canada, shipping time was fast, maybe between 1-2 weeks total time. As for duties, it depends sometimes you are lucky and it goes through sometimes you pay taxes. I got lucky and paid no duties/taxes.
I paid Zero Dutie on a Shimano groupset got very Luck@@Adonis-qj1nq
There are a bunch of other eu retailers selling at similar prices
They will come with a full Shimano warranty if you buy from Merlin. And going back through them rather than direct with the manufacturer if ever there is a problem is often a lot easier.
One effect of this situation that could be really glorious is that bike and drivetrain companies might stop updating models every 5 minutes. Instead, let the current Tarmacs and Emondas run for 6 or 7 years, for instance. As for drivetrains, at 12s, we are now at the point where there is no reason to update anything for a longggg time (I hope).
Also on the topic of Red inventory built up, a ton of bikes still come brand new with last gen Force stuff on them. I can only imagine how long this gen of Red will be around.
Shimano are 100% the reason your dealer cost is more than what European retailers are selling product for. Shimano's absolutely ridiculous geo pricing structure is broken. In practice, geo pricing is the reason Americans pay $59.99 for a new video game and someone in Albania only pays $4.99...except in the case of Shimano, Shimano lumps all the poor European countries into the same Shimano Europe distribution network, so wealthier countries like UK, Germany, etc, get similar pricing as the poorer nations (price variations mostly are tax duties and tariffs). Meanwhile Shimano North America is literally just us in America and Canada. Mexico isn't even a part of Shimano North America, they are part of Shimano Latin America. It's sadly been this broken and archaic system for decades.
The discount in the US is a joke. I can get parts and tires from bike24 cheaper pre black Friday vs the full on discount right now+ i need to pay tax on top of that. They are not going to move anything if they only offer 25% discount on parts.
How can this be fixed? Make bikes affordable! I for one can never feel sympathetic to corporations.
It’s called a deflationary period and it’s harsher than an inflationary… when any thing follows a downward trajectory, as many countries have experienced with other things like fertility rates, religious affiliation, etc… it’s very difficult to turn things around… when people decide not to, is always more definitive than when they decide to… With deflation, the logic works in the following way: there is a catastrophic lost of consumption, which forces companies to lower prices to incentivize sales, which causes potential buyers to postpone consumption, since things will continue to be cheaper in the future. It’s a feedback loop… and when things settle down, which they will eventually, they tend to settle way below the baseline… that’s the magic of what Adam Smith would call the hidden hand of the market.
I’m glad I’m just a repair shop. Now parts are cheap for my customer to get repairs done.
Bike brands have waaaaay too much inventory. I've heard some crazy numbers about how much inventory major brands are carrying right now. They have to clear that out, get it off the books, and readjust to keep the product lifecycle intact. Of course, this assumes these brands can withstand this kind of hit. Time will tell.
Democrats destroying everything
The SRAM Red groupset you talked about from Tredz is not even in stock and does NOT include the chainset as you ststed it did. I remember long before covid times I was a very regular visitor from the UK to Arizona in the Gilbert/Chandler area of Phoenix and i always made sure my bike was fully serviced before travelling as USA prices were extortionate compared to the UK. One local shop i went into I said how much i could buy a SRAM Force groupset for (in Dollars) and they told me that they could not even get it for that price from the supplier so it's probably safe to say that competition rules for pricing are completely different in the USA compared to the UK so that affects the prices. Tyre prices in the USA were very near double the UK, tubes were over double the price as well. Im sure suppliers in the USA are just like the UK where if shop owners put in bigger orders for bikes, groupsets, tyre's, etc then you get a bigger discount on the trade price which you could then choose to pass on to the customer or still sell at the full retail price and maybe make more profit or get stuck with too much inventory as the customer looked at multiple shops websites and found it cheaper elsewhere. During COVID bicycles and related products increased by 32% according to a retail statistics website because demand outstripped supply and container costs for shipping went from around $2000 to $20000 and the demand was never going to last once restrictions on travel and work went back to normal. Also how many cyclists buy a complete bike these days then a year down the road upgrade their wheelset then maybe the following year do the same again with the groupset rather than buy a new bike again with minimal difference from the previous years model, and that is where the likes of Merlin, Wiggle, CRC, etc, come into play as they might buy 100+ Shimano 105 di2 groupsets and the same for Ultegra di2, SRAM, etc so get big discounts from the supplier and sell it at profit but far less than full retail price while you as a local retailer do not have that buying power or unfortunately the customer base. The cost of living crisis hitting a lot of Western countries will definitely hit retailers as people will keep their bikes for another year or so to see how things go financially but discount prices for the current model year bikes as next year's have already hit their stores has been common practice for many years now and nothing new. Funny enough I can actually buy Shimano 105 di2 and Ultegra di2 full groupsets from a reasonably local retailer for cheaper than the big online retailers have them on sale at.
Shimano’s forecast is for their inventory to be closer to normal by beginning of 2024…will be interesting to see where RRP settles back to…
Back up higher than ever I believe. These are very unusual market conditions at present and which will not last forever. The market and inventory levels will adjust and correct themselves.
I'm a manufacturers rep. in a related industry. From the consumer end, I don't see any deep discounts on built bikes in the $1800 to $3000 range. This is the sweet spot with 105 or Ultegra, carbon frames, and hydraulic breaks. You still need to add pedals and a decent seat. There are no discounts and almost no inventory in this price section unless you go to Tiagra, Claris, and Sora in aluminum. If you want a $11,000.00 bike you can get a deal. If you want an e-bike you have plenty of options. Kids bikes, cruisers, and cheap bikes are all over there place. The bike industry has decided this part of the market is not worth the effort.
yea it really does seem like that, its almost like the sport is so focused on high end hyper bikes and is only aimed towards really enthusiast sales. those seems to be majority of my customers,
It was only a few years ago that I was buying full sets of mechanical 11 speed Ultegra groupsets for $800.00-$900.00 NZ via Wiggle. Glad I have 4x sets because I can't see myself spending what they want on electrical these days.
Grant, I know this is not a political channel, I hope you will forgive me…
But it is nice to see Bidenomics is working. 👍✌️
This has nothing to do with Biden. Just capitalists getting greedy and getting their fingers burned. Anyone with common sense could have seen that covid demand was only temporary. Grant figured it out and saved his store over a year ago.
I’m looking to buy a new roadie for almost 1 year now. Household income is over 120k pre tax and I can’t afford to pay the prices of the new bikes…I’m being stretched all directions just to make ends meet.
yea I am about there as well in terms of income and right now during this time of year my income is going everywhere else for the holidays and also the bills are getting higher and higher
My shop seen a 70% drop in mountain bikes sales since July. The entry level mountain bikes a staple of many bike shops have completely died for us. Our mtb black Friday sale did not move any inventory.
I want to make a very important counter point bikes are not just creational tools. I know many Americans struggle to see bikes other than toys. They are legitimate form of transportation. This something even bike shop onwer struggle to understand. If the American bike industry is to survive they need ro change their mentality around bikes.
The issue is that companies ran out of stock for just about everything during the pandemic. This forced the supply side of the economic system into overdrive. Demand didn't change. So when the damgates opened and the markets flooded and prices didn't respond, shops were left with lots of inventory they couldn't sell. People soon stopped buying which made matters way worse. The only saving grace is that doctors are telling people to get out and cycle. This may cause a recovery on the less expensive end of the market. As to the other end, all bicycle manufacturers will have to reduce prices or those bicycles will remain unsold. Very few people are going to part with 10K anything for a daily driver.
Cycling community is very small, with those prices and the inflation we have right now explains all of it
FYI: Merlin has ALWAYS had prices way below any other retailer. Even Pre 2019 their prices were unbeatable! I used to buy all my parts from them! This is nothing new. How they are able to offer such low prices? Idk, I am guessing they are kind of Gray Market ( similar to watches).
How is marlin allowed to sell bikes below MAP pricing, I don't understand.
@@dracorosso7129 It's illegal for suppliers to dictate prices. That's why it's SUGGESTED retail price. And, suppliers love the high voumes that discounters take from them - whilst telling physical stores that they don't support or supply them!
Parts suppliers like Shimano and SRAM are vertical price fixing, especially in the US. For several years, these companies were preventing sales of UK parts parts to the US. Today, complete 105 hydraulic group sets can be purchased in the UK for just over $500. In the US, just the shifters and brakes cost more than $500. There are middlemen and distributors that are bleeding the industry and consumers dry, and killing the industry. Who was telling European and UK retailers that they couldn't sell to overseas customers? Who is deciding to set prices on parts in US so much higher than other wealthy countries? With the quality of Chinese groupsets on the rise, Shimano and SRAM had better reconsider their policies of milking their customers.
So 40% off of crazy 40% jacked up gouging price. Now we are just back to normal.
This started off with 5 years of sales in 18 months. Then manufactures and dealers started raising their prices. So now anyone who wanted a bike (in general) already has one. Many of the people who bought bikes during covid started selling them when it really wasn't for them just something to do during covid. The next hammer to fall is the Brandon economy. Inflation is just staggering. Just groceries alone doubled in price this year alone never mind last year. Utilities have skyrocketed in cost. Tie that in with interest rates rising and you have a pretty good recesion going on. Unless something dramatic starts happening soon this may be just the beginning.
You think because we have inflation that means we have a recession lol. Thats an uneducated and ignorant thought, sorry.
@mutleyadamsracing2684 that's not what I said. Learn how to read and understand what you're reading. A little over the top bud
Whose Brandon and what does he have to do with the US economy. Sorry ignorant Canadian up North here. But yes I agree money printing by central banks and deficit spending by government has lead this inflationary crisis. When the cost of living in most parts of the western world have gone up by 40% in 4 years the last thing you are thinking about now is buying a $10K bicycle.
@@dishboy14Brandon is the alt right maga trump crowd’s nickname for Biden. They believe he is responsible for inflation and corporate greed that is driving costs above any effect of supply chain issues. True he’s and old school help the businesses to keep American jobs kind of politician but whenever he says anything to support workers and unions, the Republican right wing blame that as somehow causing inflation while totally ignoring when CEO pay has gone up while worker pay stays the same.
@@dishboy14 Brandon is kinda of slur that many Americans are using to call out President Biden. The person that replied to me is just upset that I called his guy out. In his defense this is the wrong place to do that. My main point is that due to prices skyrocketing in many areas of necessity (groceries ) that there is less money for other things to go around. So unless you're a professional and your bike is working well for you, then a new say 8k bike is just not in the realm of need. Plus the fact that many in the bike industry thought this would go on forever was just not reality based. I hope that answered your question.
1500 for that shimamo groupset....I bet shimano are still making a good margin on that product even if they sold it direct to retailer for that price. Time for the cycling industry to stop taking the pi55 🤷
og im sure, those are prob groups that were supplied to big name manufacturer that canceled and thats there retail for it
Screw the bike industry! That thumbnail needs a deep analysis more than anything else.
hahahah
i still havent seen any discounts on flagship bikes w/ dura ace.
only force and ultegra stuff that doesn't appeal.
The main problem I see, even for the avg dentist: bikes can only be one thing. Either expensive or buyable every year.
You cannot expect people to be buying 5k (bc that’s where a real value road bike starts to have good components) bikes every year, and even every two years. It’s too much money for a bike that does and looks exactly the same.
Many people (even dentists) have bought their bike in 2020 and 2021 and realized that was a good bike they could keep for 4 to 5 years at least, bc so far 22 and 23 bikes are the same they bought 4 years ago.
Make them expensive and expect people to buy them every 5 to 8 years, or make them cheap (3k or less) so people buys every other year or so
No, bikes are bought longterm unless you destroy them. Talking at least 10 years of usage. Hell my trekking bike for moving around the city is around 25 years old and works fine. My new road bike will also have to last at least 10 years with replacements for used parts before I buy a new one. A bike is not a throwaway product.
@@Matruchus that’s what I’m saying: the bike market is crashing because their are pushing the same analogy as car dealerships: thinking people is going to buy expensive bikes every year just because
Why would you need to buy a new bike anyways? Maybe you bought a road bike and you want an mtb, but that means you're buying 4-5 bikes total.
@@challacustica9049It’s not about need so much, it’s all about want. Like pretty much everything in modern life. And because of that when money is tight and the economy is poor, people are able to cut spending on things like bikes and make do with what they have.
it means bargain bikes for people. Market based on supply and demand, so like lots of other industries such as tech, the lack of demand is really a market correction.
Merlin is where I got my groupset from, and they shipped it 2 day express for free. Score!!!
Has to be tough for manufacture to dial back the “Covid time pricing”. Be marketing/reputation suicide to have the “next” model year stuff released with lower prices.
I think people always find money for their “wants” but cycling wants were gobbled up during Covid.
The bicycle industry and community is their worst enemy.
Secondhand bike market in Aus is totally broken.The prices being asked is so expensive its laughable to even think these sellers can even shift their bikes.
It's always been a thing where people have paid premium for x product (not just cycling) and then thought that a few years later, it would still command a high price when they want to move it along.
What you’ve got to remember as well is that a lot of folks are not desperate to sell. I’ve got 6 bikes, and am in the process of selling one of them. I’m not in any rush to sell. If it takes a year or two I don’t really care. It’s a great bike and so I’ll hold out for the right price and eventually someone will come along. If I don’t get the price I want at the moment, it’s no big deal and I’ll just continue to ride it for the next couple of years.
Lmao at the thumbnail after the pod
nero show inspired hahahaha
Hype has ended and pay back time came)
A shop is selling new (!) Fulcrum Speed 25 DB for 1150 usd, Bora WTO60 disc for 1300. I just bought a Roval Alpinist CLX II for 1150 usd.😊
yea alpinist wheels are on a huge disount
We literally spit the bit, starting around the time Lance retired the first time. LAJORS was a grifting joke. We demanded infrastructure instead of education and encouragement and enforcement. DA's don't prosecute motorists who harm cyclists, and they don't prosecute cyclists who break laws themselves.
There are Six E's in Advocacy:
Education
Encouragement
Enforcement
Engineering
Equality
Evaluation
They're not in any order. They all need to be addressed. Try offering each new purchaser 3 hours of bike ed. 3. $50. It's what the motorcycle industry had to offer, and it saved the industry.
very nice information!!! Thanks
I got a brand new Trek Checkpoint SLR 7 for $3K off MSRP from Pros Closet.
People began cycling as a means to go out on pandemic, now there is lots and lots of inventory, in Costa Rica bike retailers are giving 2x1, buy a xcaliber and get a marlin 5 for free, speaks for itself. Went for a derailleur hanger to my local bike retailer, black friday and i was the only there, even looked like no one got there in a while
Got lynsky 500r for almost half the price with 105 di2 aswell as cheap-er than usual price for Factor VAM.. and the sad part is im also thinking of selling those two. I still have one alloy bike which works fine for my weekend bikes tbh
You know it's bad when your store's credit line is frozen due to past due bills and you have a manufacturer rep in your store verifying what you sell and demanding payment of inventory sold at close of day's business, been there@!
yes I have been hearing more and more stores going on credit watch
thumbnail needs even more flames!
thumbnail was inspired by nero show
Well, if you skip paying your electric bill it's gonna be black December too... 😅
Word of advice for anyone is this: If you have planned to get something for a while and all of a sudden there is a sale on that item, then it's ok to jump on that deal if you can afford it. What I will advice against is buying something just because there is a sale, because that's you lighting dollar bills on fire for no reason.
Screw black friday and all of that bs because you should just simply go about your day and look for things you actually need instead. Just stop being so damn naive and fall for these traps, because there's always a good reason why there is a sale and it's got nothing to do with them trying to be so nice to you.
yea I agree with that
Totally disagree. There is a huge amount of excess inventory and prices for bike parts are available now at less than trade price. This is a once in a generation event caused by Covid and massive over ordering, coupled with a huge fall off in consumer demand. How long do you think this is going to last? Anyone who does not back the truck up now and stock up on chains, cassettes, groupsets, tyres etc. is a fool. These are things which wear out and need to be replaced and also can be stored for years without any problems at all.
There will be an industry reaction to this and the business cycle will swing the other way and in a couple of years there will be way less inventory available and prices will be back up higher than they have ever been.
@@paddyotoole2058 I said it's ok to buy something you have planned for and if you can afford, then sure. Buy things you need, and be mindful of things that are just something you want.
You do seem like someone who do get hyped for sales, so here's more advice for you: Purchasing something shouldn't be fun. That's a big red flag.
Once again, IF YOU CAN AFFORD IT, then sure. There's just no point buying stuff just to buy it, so as you have completely ignored what I wrote it does seem like you'd just buy just about anything just because there is a sale. Set you wallet on fire for all I care. If that's what you want, knock your socks off.
Persoanlly I have a budget and if I start throwing money around, I'm the one who will get burned for it. There's going to be a day tomorrow as well...
@@a8f235 No advice is needed or sought thank you. Like I say what we are witnessing now is a once in a generation event initially caused by Covid messing up supply chains and causing a huge shortage. In response to this there was massive over ordering and excess of inventory which is coinciding now with a downturn in consumer demand. That is why you are seeing the fire sale prices right now.
I’ve been cycling for over 40 years and bought and sold many parts and traded along the way. Chains, cassettes, tyres, chainrings, groupsets etc. all wear out and need to be replaced. And also they can be stored for many years. I’m buying stuff now that will see me through personally in these bike consumables for the next 10 years, and also to sell some on the side. I also think it is highly likely that because of the current glut, the market reaction and cycle over the next couple of years will be to reduce inventory massively, which will mean that by 2025 / 2026 there will be a real shortage again, and prices for bike parts will be higher than ever. It’s at this point I’ll probably release some parts back on to the market to sell at a small profit, and also be happy to know that I won’t be paying top dollar with all the other mugs whenever I need a new set of tyres or when I go to replace a cassette or chain on any of my own bikes.
I like when bicycles cost more than cars or my used Toyota Voxy that I got for 2k :/
Speaking real truth
I am glad you enjoyed
Certain retailer that you’ve mentioned has become notorious for flogging stock at well below trade price. It’s hard to say if they are overstocked or if they are helping distributors clear their overstocked inventory…but it’s not good for independent bike shops at all..,
really? well they could be a run off for those big name guys that way they are not the ones who look bad and merlin takes the bad rep
Independent bike shops have been taking the piss charging 2x the market price and more for components with huge mark ups for years. Those days are now over. The market has totally changed and consumers’ awareness of and ability to source the parts themselves at half the price is part of that. The good bike shops that survive will focus on customer service and quality of workmanship and hold very little bike parts inventory.
Bike prices have gone up much faster than inflation. Fix prices and people will buy more.
this is true, but also fix economy and interest rates people will buy more lol
I was able to order the Ultegra Di2 groupset from Merlin 2 weeks ago with their Black Friday sales. Very reliable company and received my order 3-4 days from UK to US.
dang, wish I could say nice but I dont know how I feel about that lol
Prices have to come down to earth. Everything is still massively overpriced. Also bikes are not throaway products. You buy a bike for at least 10 years unless you are very rich.
With e-bikes, nothing assures the customer that we can even get a replacement battery in 5-7 years when they go bad, especially if you don’t buy one made by a well established company. We are going to end up with a tremendous number of e-bikes that can’t be ridden in 5 years - company out of business, too expensive to have a battery refurbished, etc. And risk of battery fires - at the very least, require that e-bike batteries conform to safety standards. Yeah I know, people don’t want regulations, but it’s for everyone’s safety.
My take the bikers I know mostly road all have their dream frames, and had them prior to covid. Now many of us got new wheel sets or some odds ends like pedals but none of us were in the market for something brand new. We are older 50 plus riders. None of us worry to much about dough at least on bike stuff. We are going places to ride far from home, that is what we are really spending on. For bike prices today even with discounts, 5 grand can take 14 of us to Cali to ride for our dream rides along the coast and our bike racing fees for all of the next 2 seasons. We talk i think most of us will buy something in 18 mos or so if then. Hope this helps u guys. We buy clothing (some way more often)all the time, one member is jonesing for shoes and pedals lol has a collection akin to a sneaker head lol
Pounds is not equal to usd dollars.
It's finally happening...
Yeah, in better financial markets I would probably be upgrading my bike, but when I'm not feeling so great it is more like "I'll upgrade my cranks and shifters to Red whenever the new one comes out". Would rather have the money in my account when I read about layoffs every day.
Waiting to hear coverage of the private equity/special interest groups/big brands that are hunting for acquisitions, spring/summer will see shops with new ownership
Tech companies are hunting for personal transport brands. McLaren Tchnology bought VanMoof. Google and Amazon would love to own a big brand to market connected bikes and e-transport.
But yet I just looked & the sale prices on a lot of bikes is still way to high they are going to have to take more of a loss on any bikes that are not 2024 models. I looked at all types of mountain bikes so I don’t know how other types of bikes are priced. I’ve seen people saying that there been insane deals on bikes including ebikes but that’s not what I found. If the Companies aren’t willing to take bigger loses they are going to be stuck with old stock that takes up space & is not making any money. Even if they take more significant loses & drop prices at least they are making money & getting rid of old stock but if they sit on them the amount they can recover will be less & less.
they can keep those in their muzuem. customers are no longer buying bicycle.
At 1400 dollars for a group set still seems expensive, 2.5k full price is a ripp off.
not really
I got an Aethos Expert (Ultegra di2, Roval C38 wheels) discounted from 6500€ to 4500€ and they are having still stock after more than a week (10+ bikes in some sizes) but have put the price up to 4700€ now. Usually just the Aethos frameset is 4000€ and the best deal on the frameset I could find was 2800€. Totally insane.
Businesses can't sustain big discounts without sustaining financial damage. They have costed for selling at list. Margins were always slim. Cashflow is king, but moving stock at big discounts always has future consequences. There's big trouble ahead.
@@davidpalk5010 But still I don't mind making a bargain. Bikes have been way overpriced the last few years. Hope it brings brands and shops back on track to be more sustainable. I mean Spesh is charging an absolute premium for the framesets considering that most likely the production cost of an S-Works frameset is well below 1000$. But they spend huge amounts on marketing.
Bike shop just shipped me a brand new 2022 diverge expert carbon for $3600. The bike was selling for $6200 like 3 months ago…
I’m happy for sure but I cant imagine how anyone was paying $6200 for it ever
That’s a great deal, and I’d buy that exact bike in a heartbeat if I could get that price…..in Australia. This for me is part of the problem. It’s great as per this video that some areas are getting deals, but it’s not global. Pricing for old stock Specialized road and gravel bikes hasn’t changed here for approx three months.
Specialized bikes on craigslist in my area under $300, people need Xmas money and it's winter in the north east
Yea it’s true but those are not nice nice
As I had been saying all along, CYCLING IS THE NEW GOLF. And when I was screaming about the GREEDY bike companies charging outrageous amounts for bikes that I would buy years ago for a fraction of the price, all you NEWBIES told me that if people had money and wanted to spend, that was none of my business. LOL... but the market crashed as I predicted because the niche people that rushed out to buy $15k bikes and were new to sport have been exhausted. As I said, in 2015, I bought a Focus Cayo with Ultegra Di2 for $2190 shipped new in the box to my door. That same spec bike which was ridden in Giro would have been $10k before the recent crash. Don't get me wrong, 25 years ago I bought a Litespeed Vortex with Dura Ace that was the most expensive frame in world at time, but proportionately it was far less than what these China made carbon frames cost. The industry deserves this.
Wiggle. Prime 50mm carbon rim brake clinchers, usually $969 AUD. Black Friday Special $959!!! Lol. You think they'd be trying to just get rid of these wouldn't you? Rim brake clinchers, going bankrupt? Nope. Just $10 off.
9velo is running 15% off of their already fair prices. Picking up a set of their gravel wheels for $750usd shipped
cool bread mate,
whats a bread
The best bikes ever made are all 10+ years old, available in mass on the used market, and relatively cheap. I had to stop buying them because I ran out of space.
Do love being called a 1%er and feeling super wealthy with my dura ace bike and dura ace pedals... while I sit on a plastic chair in my living room eating peanut butter from the jar with a plastic knife.
hahhaha your a man who has his priorities right lol, or lives within there means lol