Thursday, September 18, 2008

Why wait!

Or in this case, why should you NOT wait.

As most of you know, I am a bike enthusiast. I like riding, I like the bike culture, I enjoy the improved health from riding, and I enjoy encouraging others that are getting started with cycling. I also like watching the bike industry to see what is out there or coming our way soon.

I recently purchased a new bike so I'm not currently in the market for another bike. However, just prior to buying that bike I had to decide if I wanted get one now, or wait a few months and get one of the new 2009 models that will be coming out in the next few months. During that decision process I learned a few things about the bike industry and how bikes are priced and what determines the cost/value of a bike. Some of the things that affect the cost of a bike is the cost of raw materials, the cost of shipping the product, and the value of the US dollar in relation to where the parts and frames are manufactured. Unfortunately, all three of those major factors are not going in a good direction. The dollar is very weak right now, shipping costs are going up with the cost of fuel, and the cost of raw materials for bike frames and parts are going way up.

So what does that have to do with you, or me? Well, bike prices are going up. Not just a little but a lot. The number I've heard most often is 20% across the board. So a $500 bike this year will soon cost $600 for the same quality. That means that bike manufacturers will have to offer less quality or just less value in bikes that are targeted at a specific price point or charge more to maintain the same quality/value.

So if your planning to get a new bike in the near future, DON'T WAIT. If you wait too long, you will pay more and/or get less for your money.


T-bone said...

Well Bob, I'm not sure I agree with you 100% I just bought an 09 Gary Fisher Rig (SS 29er) last week for $1299 at a bike shop in Portland (and no sales tax). On GF's website it lists retail at $1430 so I was a little shocked when I found out they were selling them below retail since I got one of the last ones in the country. When I asked for a price quote I was expecting it to be closer to $1500. Go figure.

Scott Redd said...

I wonder, too, if the gold old capitalist market system recognizes that people are riding bikes more as gas prices climb. Naturally producers and retailers raise the prices when they think people will pay more for a product.

Biker Bob said...

Congrats on the new bike.

Scott Redd said...

That should be "good old capitalist", not "gold old capitalist".

That's an interesting word substitution, given the context of my comment. :)

munsoned said...

That Wingra I bought and was $470 at the beginning of the year, but I paid $520 before taxes a month ago. I noticed this on all the new years models. I think in some cycling hotbeds (such as Portland) the competition and demand of bikes would allow prices to be dropped. But most other places, I think the prices are just going to climb.

T-bone said...

Your probably right Mike. Personally, I think they gave me the price for an 08 Rig by mistake. The shop was a total cluster. When I went to pick up the bike they tried to make me pay for it again.