Bike Prices Are Getting OUT OF CONTROL!
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- Опубліковано 28 сер 2024
- Discover the shocking truth behind Giant bicycles and the leaked memo that reveals the rise in bike prices. Find out what this means for retailers, the brand, and the overall market. Subscribe for more updates on the wild roller coaster of emotions in the bike industry!
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Purchase Joe's No Flats:
evo1industries...
Yeah, because selling only high priced over-specced vehicles is working so well for the auto industry...
FACTS!
Not comparable
The system was working fine when interests were low people switched cars without any cash tacking the remaining financial bubble from the 5th previous cars they took on 84 months 😂
Now you can't do that, inventories piling up, people can't get loans, and that's alright you shouldn't have a 50k+ car if you're making 50 to 100k a yr. It's all a bubble.
@@LaurentiusTriarius yeah, so we should finance bikes now?
Walmart is going to take over this over priced bicycle market. Their $300-$400 MTBs are great entry level good bikes and with the rumor of Specialized partnering with them, they going to take the next step soon. The writing is on the wall. These over priced made in China bikes won’t survive at the current prices.
Higher prices are killing the industry it makes no sense because the target group for such high end bikes has diminished & also people are tired of paying the price of a motorcycle. The industry is out of touch & this isn’t going to go well for them it’s sad the industry is so greedy.
They can 'skyrocket' all they like, I'm going to keep building bikes from secondhand parts for a tiny fraction of the price of new...
Wow. Just got farther into the video...
If a company can sell a $3K trail for $1500... No, no. You are clearly on the side of the "industry". Sell bikes just to "those willing to pay the price" - really? That is not helping the SPORT/CULTURE. That is taking advantage. Thats the issue. And consumers can see this.
Screw the industry, really. Seriously. Its hurting because people obviously arent willing "to pay the price" and are flocking to the used or Chinese market. The sport and culture will go on, without "the industry" as you know it. That's why its in a shambles now. This started before Covid too, so blaming on that and supply chain BS is and excuse. This situation is a long time coming.
People aren't "not buying bikes" for supply chain issues, "saturation" or ANY other reason - other than the cost really doesn't make sense. Hiking prices and competing doesn't make sense in the big picture if people arent "willing to pay the price" in the first place. Yes, there's a segment of "the market" that doesn't have a problem throwin down $4 to $6k on a new bike. Thing is, that wasnt enough to "sustain the market" before Covid. Covid only became a scapegoat that "the market" could hide behind. Only covid is now largely gone and the problem remains.
Higher prices? Good luck with that.
(It wasn't greedy to drop prices dramatically to make sales. It was greedy to price the bikes so high in the first place).
💯
How many people are so pissed off with bike industry BS they dont even go into bike shops anymore. ME or car dealers or motorcycle dealers etc etc
Let's not ignore the 3rd gen of high quality Chinese parts & bikes. The Western brand companies shot themselves in the foot when they inflated prices over the last decade. The market is correcting itself.
Wlhy are you simping on these companies so hard!? We need better prices!
Prices will be going up? Heck, I’m still waiting for prices to go down! 🤪
riight... settle down tho, remember the poor shareholders and CEOs that wont get their bonus payouts
(edit) also the fat cat bike shop owners
Trek has some good sales going on right now fyi.
Market correction should mean prices dropping by half, we do not need any more innovation in the cycling industry, what we need is reasonable prices, stock availability, manufacturing to a tolerance and quality control in the factory...
Hay mas "inovación" de la que la gran mayoría no necesitamos
I'd be shocked. I expect the opposite, prices are going to come down. Bikes are too expensive now.
Thanks for the video. I'm a little confused though, on the one hand I believe you are saying that bike brands need to stop being so greedy and reduce their prices, while on the other hand you are advocating increasing prices.
I think the main reason why they have to lower their prices is the excess inventory they have which they are paying interest or storage costs which is bleeding them dry.
Very true!
Get an old steel single speed to rebel and enjoy life!
Facts
The bike industry can't sell bikes at 40% off...so let's raise prices..that will work.
Right!
Right now, if you know what you're doing and can source parts accurately, you can build a $5k+ bike from the frame up for like $3k.
You've gotta know what you're doing, have the tools and gumption to build it, but there's a lot of money to be saved on OEM takeoff stuff.
100%
Maybe bike shops should be getting in to the secondhand used bike market. That way they have some influence on used bike prices, and give some customers a viable path for new upgrades.
Yes! Look at BuyCycle I think they will absolutely obliterate TPC and the other secondhand/refurb companies
@EVO1CYCLING here in NZ the main used market is auction site Trademe. That may suit some people, but sellers have an inflated view of bike prices. Many buyers would value advice, payment options and a warranty and pay more for that. And shops could add on service packages. They could even re-sell the packages offered to the original owner (one LBS doesn't transfer service packs to subsequent owners, don't ask me how I know...)
This is a good point! I only buy used bikes due to my price points and have been confused as to why you only see new bikes in shops. They're missing out on so much available retro inventory that they can rebuild and profit from.
Raise prices all you like, but competition isnt good if nobody's playing.
I cant believe the normalization of insane bike prices for no reason other than profit. Yeah yeah, R&D and a that blah blah blah. Its rubbish. Nothing else in my life has increased in cost so dramatically over 20 years as bikes, and in the last ten years, bike haven't become much better. Any 2015 model bike is just as capable as a 2024 model. Its ALL marketing BS, that really became obvious when "all mountain" was a thing. Only now we have "Gravel" and "Down trail" - seriously?
What's really sad, is this model is starting to bleed through to BMX. A portion of cycling that hasn't seen the ridiculous rise in pricing over decades, (not in the manner MTB has) yet the tech has indeed gotten better.
I think if one is really immersed in the culture, its nearly impossible to see this objectively. The "industry" is pricing out new riders. Period. I work with a guy who wants to try riding, with his girl. But even the prices at Dicks seem out of touch. He was surprised to learn what the prices actual bike shops asked. BTW, i advised him NOT to go to shop.
I digress. My point is the pricing is largely arbitrary. The industry needs a reset. Whatever that looks like. It hasn't happened. Companies like Giant who ignore the issue will ultimately learn, through loss of $$$.
Unless they have a strong e-bike game. I see easily 10X new riders on cheap e-bikes than i do new riders on trails. But if they copy this fake, inflated pricing scheme then e-bikes will fail for them too.
On the plus, a shop that dealt in used only equipment is a great idea. Like a Play-it-Again Sports version of a bike shop with a certification process.
Anyhow interesting video! Sorry for the rant 😉
This is interesting and perhaps a sign of the industry stabilizing, but one manufacturer alone can't force the entire industry to raise prices. It is the consumer that drives demand.
Time to buy a motorcycle instead...
Interesting. Unfortunately, I don't think this strategy is going to work well for Giant. Between improvements in supplychain mgmt and exponential increase in access to global companies over the past decade, its going to a challenge for them. Increasing prices will work in the beginning, but if the other big 3 don't follow to keep the price disparity the same, it will sure back fire since consumers in this market/industry have so many alternatives.
And let's not forget the Olympics - many brands are trying to use that for recognition.
Canyon, Specialized, Trek - and with the year Tadej is on - Colnago will be the winners in August.
Yes!!!
What is going to happen is the bike industry is going to go bust.
I suspect the rrp may go up ,
But from what I’m observing, they aren’t getting those prices anyway in the current landscape, sales are being made when they drop their prices
Walmart and China company’s going to be exploiting this over priced market very soon with some attractively priced quality products. Don’t expect Trek, Giant, Specialized, etc to keep manufacturing bikes in China and selling them at U.S. manufacturing prices without those same China manufacturing to start doing it on their own and cut them out of the picture. It’s not a sustainable business model.
There's no competition because we still under the effect of covid, there was a lot more bikes and components produced then there was a demand for and the market was basically surviving that and dealing with redicules second hand market as a result of that, it's almost over now and things are going to change back...
Bikes been overpriced forever...how much higher can the prices get and the industry srill tbinka ppl will pay/can afford?
I wish we could go back to the late 90s prices
Your forecast is interesting but something you are discounting is what the macro economy will do. If the unemployment continues its recently established upward trend, the market for bikes could become even softer.
100% True, I just try to shy away from talking broader economics because I’ve had people get all political in the comments before lol. But you are correct, it would soften the brand side but I do think maybe be good for the really cheap end from a transportation point.
The unemployment rate in the US has been historically low since 2021, hovering between 3.7 and 3.9%.
@@jasonlevittIn 2021 people weren’t paying what they are now for housing, utilities, and necessities like food and gasoline. Rents have doubled in some areas. The middle class is really hurting compared to 2021. People and are uncertain about what the future may hold now more than ever. They are definitely giving more thought to what they spend on novel purchases and there are only so many high income earners out there who remain unscathed. Buyers on the high end aren’t the people keeping huge bike brands afloat it was the masses willing to shell out a little more than they could probably reasonably afford
There are a finite number of customers that are able to afford or who will justify paying high prices. Bike companies need to have products catering to all price points. Note that Dick’s Sporting Goods and Walmart are selling less expensive bikes for the everyday customer and many regular people are moving that way due to the bike companies catering to the higher end or offering less value on the low end.
For a while it was like everyone needed an enthusiast level bike which really blurred the lines and drove the value proposition down
@@EVO1CYCLING what complicates the bike industry is that bikes can last a very long time. My road bike is a 1998 Klein Quantum Race which I have maintained very well and have no need to replace. As for MTB’s, I bought a few during the pandemic when Trek store had nothing (they missed their chance). That’s when I discovered that some department stores had very good bikes with aluminum frames, tapered head tubes and modern geometry, but slightly lower equipment levels. I bought a few of those and upgraded them to the point they are better than an equivalently priced Trek.
Same in Europe, the french company Decathlon makes really good bikes at low price points, they're basically the go to company for bicycles under £1000 at the moment.
Bike shops started slashing prices mid-May trying to get rid of inventory.
About? They are already too expensive. Welcome Chinese bikes.
Of course prices are going to go up - bikes have been on sale for the last year to address excess inventory - they are now running out of particular models, while the manufacturers are reducing production (and in some cases going out of business). This means increased prices.
Any update on Walmart and specialized?
Just silence and no response to requests for comment
All I'm gonna say is that's not quite what's going to happen
I agree. Its about value. Just bought an ebike from a shop that give me a sense of value with $150 off. No the shop that would not negotiate.
I just bought all the rival axs pieces individually for my gravel bike - with wheels for like $1500.
However, the Eagle AXS 1X drivetrain for mtb has fewer parts and is way more expensive. I don't get it.
OEM short shrink, just like you said.
It’s amazing to see the pricing make no sense anymore
@EVO1CYCLING what's really frustrating is watching the local bike shops kinda die, while living in a time of cheap parts, but myriad standards, so it is really challenging to sift through reddit threads and UA-cam channels.
I was just at Bike Mart in Preston Hollow about 20 minutes ago, picking their brain about how to make a 2015 Fuji on Tiagra run Rival.
Basically, the answer was "specialty tools and money", hahaha.
Why buy a spanking brand new bike when you can buy it used. If you know what you're looking for you can find it out there for cheap. The last two bikes I bought I found them on pinkbike. A Santa Cruz Megatower that I bought about three summers ago and a Transition Repeater e-mbt that I bought last year in July. They were both in excellent condition and very CHEAP🤑👍🏿
Oh and don't forget Facebook market place.
Same thing happed to dirtbikes.
Trek has some good sales at the moment.
Interesting perspective.
Thanks!
Prices will go up and then will go down 😂 like always, and as far for gigant there still is full market of 21 year models so we have some time till we buy out 21 22 23 years and while we get to 24 year modles they will be cheeper 😉
You have to consider non cyclists and the money they contribute to the market vs the hobby and sports markets. Those non cyclists have no many options for battery powered vehicles that expensive bike have no value to them. I also think passionate cyclist should be able to afford bikes so I am not excited about the price increase. Seems to be a step in the wrong direction.
China is going to bring competition. Winspace, Ridenow etc is going to lower prices
Is the big news that you're the secret buyer for Kona? They suspiciously stopped taking new orders from their website after you posted this with rumblings that a sale is imminent...
you need a microphone booster, its soo bad
I have to record low to bring down the echo, it’s just a crappy Rode Micro for now.
@@EVO1CYCLING otherwise great content, im already a sub :+)
It’s appreciated! I do plan to do a wireless setup soon, I just have pretty much everything wrapped up in a project right now. I was hanging out with Matty Active the other week and tried his DJI setup and it was fantastic, likely what I’ll grab but it’s like $450. ☹️
dang the inside scoop, you must be very popular have serious connections and definitely not another desperate youtuber.
I think a lot of people are missing the point here, while mid spec discount bikes look great for the consumer they hurt a lot of other people within the industry. There's basically 4 buckets a new bike can fall into:
High volume (department store) bikes that are assembled quickly, have minimal margin built in, and offer little to no after sales support.
Entry level, typically the cheapest bikes you'll see at your lbs, they need a reasonable amount of margin built in to cover assembly costs and some level of after sales support, but in all are designed to get someone in the sport and convince them to buy something better in s couple years if they stick with the sport.
Mid range, let's call this everything from ~$1500-$4500, these bikes are usually going to have ~25-30% margins for the dealer to assemble the bike and offer a higher level of after sales support, these are the bikes that allow your lbs to profit and expand their offerings, they have the right amount of profit and volume to make sense for a bike shop.
And finally high end/boutique bikes, these bikes are your built to order options, there's not much volume here and the margins aren't as high, but they don't need to be thanks to the cost of the bike, even at a smaller margin bike shops can tailor these bikes to a customer with little to no additional cost because there's enough profit built in and value in take off parts that they don't really lose anything by making ergonomic adjustments to suit their customer.
The recent price cuts have really only impacted that third bucket, department store and entry level bikes are already as cheap as they can reasonably be and the high end bikes aren't built in enough volume to face the same inventory issues, but that mid range market taking a nose dive has a big ripple effect across the industry. All of a sudden you're lbs can't sell their bread and butter because they either need to sell it at a loss or offer it at a price that doesn't even compete with the manufacturer that sold it to them in the first place. Mid sized manufacturers also take a beating here, with lower order volumes on components and more overhead per bike produced they simply can't afford a steep discount (see Vitus, Ragley, Kona, etc) and either have to take a loss to pick up cash or hold their inventory and risk trying to sell an expensive outdated inventory who's value is already bled dry by warehousing costs and interest. At the end of the day the prices we've seen lately have been great for consumers in the short term, but the cost is going to be reduced competition in the mid range and the loss of local bike shops, along with the technical and community support they offer. This is a bad thing that can really only be addressed by the big guys returning to normal prices and holding them there while cutting production of new models and pricing the new versions at a premium to push consumers to the old stock without crushing their dealers bottom line. In a few years once we're out of the mess COVID made maybe we'll see some competition on price again, but right now manufacturers need to try to protect their dealers, they've soured those relationships and are realizing that the dealers are often the nucleus of the community they need to move inventory.
Bike mechanics are pretty simple and tools can be found for very cheap especially if you order only what you need when you need it, if you're into this sport for awhile and you're spending on a new bike every 3-4 years you probably don't need a LBS who's going to charge you 200$+ for changing the oil in your lowers or "installing" a new set of wheels and tires at 30% markup for "free" nah make that 20$ per tires since "you're a good customer" .
People need to educate themselves and stop being grabbed by that shiny handle in their back...😂
@@LaurentiusTriarius I get what you're saying, repairing and maintaining a bike is relatively simple, and I hate to break it to you, but the people performing their own maintenance (like me and presumably you) and cyclically replacing their bike are not the group manufacturers care about, that market is already established, those people will be back every 4-6 years for a new bike again no matter what, they enjoy the sport and will keep paying to enjoy it pretty much regardless.
Good dealers on the other hand help them bring fresh blood into the market. A good dealer helps make sure that when someone buys that first purpose built bike they're getting them on the right bike and supporting that customer to make sure the bike operates in peak form when the customer wants to ride it.
A good dealer also has a vested interested in the bike community of their area, they're helping to organize group rides and trail building days, making sure their customers have access to places and events to really enjoy their purchases. Without the LBS manufacturers lose an advocate that is engaged with their customers and actively working to secure a future customer base.
Without the LBS we lose some of the biggest community advocates for the sport, while we may not need them for technical skill, a lot of people do need, or want, them for that, not everyone has the time or patience to make their own repairs, a lot of people just want their bike to work so they can go on a ride and would rather pay someone else to make sure that's the case.
Im buying used bikes from broke ass bikers
Buy a Sur Ron ride the mtb trail it's legal
I work for a small bike manufacturer. Our profit margin is at the lowest point in the companies history. The reason is because all our suppliers of components have dramatically raised prices since 2020. Shipping has also increased substantially through the same period. If you’re angry at prices, talk to SRAM, Shimano, Maxxis, FedEx etc.