Your next bike just got a lot more expensive

Santapez

Well-Known Member
Team MTBNJ Halter's
I'm not buying that statement one bit. Seems politically motivated and not at all related to being honest or forthcoming w/ pricing.

Someone should also screen shot all of bike manufacturers msrp's on their websites. I'd guarantee there won't be a 10% increase this time next month compared to what it is today.

I buy a lot of stuff for work that has a high metal content. Electrical enclosures I buy are 100% US made with US steel. Same thing, tariff charges as all of the steel suppliers raised their prices to them.

They were very clear about it, We got an X increase so therefore we are increasing our cost to you by Y.

-Steve
 

stb222

Love Drunk
Jerk Squad
I'm not buying that statement one bit. Seems politically motivated and not at all related to being honest or forthcoming w/ pricing.

Someone should also screen shot all of bike manufacturers msrp's on their websites. I'd guarantee there won't be a 10% increase this time next month compared to what it is today.
So 4% is price gouging? The litttle guys can/need to adjust prices more rapidly as they don’t have the buffer of the bigger companies to take up slack. So yeah, the big brands won’t show a short term difference but next year the same level bike will be more.

Before there was any talk of tariffs, I was in the market for another Paul stem. I purchased one when they first came out in 2017? And it was $100-$110, now the price is $123 to $161. Likely due to the huge aluminum price spike in January when tariffs were first threatened. So is Paul to absorb this when they are a just in time shop?

1B6532CC-B753-47CC-B9A9-AF634F022E13.jpeg

Yes, for sure some political motivation here but you can go ask Paul and White Industries yourself when they are in Philly next month.
 
Last edited:

Steve Vai

Endurance Guy: Tolerates most of us.
I'm in the process of building a 100% US built bike. I got the tariff notice with my order as a separate item line. It was like a $40 increase for 6 bearings, which is totally a made up number as I can source US made bearings locally for less than that...
20180824_141049.jpg
 

Patrick

Overthinking the draft from the basement already
Staff member
since when was the selling price based on the cost to make it? and/or taxes?
 

Chris(NJ)

Well-Known Member
So 4% is price gouging? The litttle guys can/need to adjust prices more rapidly as they don’t have the buffer of the bigger companies to take up slack. So yeah, the big brands won’t show a short term difference but next year the same level bike will be more.

Before there was any talk of tariffs, I was in the market for another Paul stem. I purchased one when they first came out in 2017? And it was $100-$110, now the price is $123 to $161. Likely due to the huge aluminum price spike in January when tariffs were first threatened. So is Paul to absorb this when they are a just in time shop?

View attachment 77240
Yes, for sure some political motivation here but you can go ask Paul and White Industries yourself when they are in Philly next month.

Why not use something longer than a one year price chart? Go back to 2013/14/15 when alum prices are almost exactly where they are now. Was there a price hike back then on those components when a different administration was in charge and “tariffs” weren’t in the news?
 

Steve Vai

Endurance Guy: Tolerates most of us.
And the last time you sourced aluminum billet?

White claims they use US raw metals so that price increase has nothing to do with the tariffs. I don't doubt their costs have gone up but blaming it on a tariff is lame when you're whole company purpose is to build things 100% here in the states. Industry Nine and Velocity haven't increased costs...yet.
 

Matt_

I Get Jokes
The reason US raw material prices increase is because of the sudden demand increase. Now all the sudden outsourced raw material is more expensive so US material producers cant keep up with the increase in demand.... the obvious result is price increases.
 

stb222

Love Drunk
Jerk Squad
Why not use something longer than a one year price chart? Go back to 2013/14/15 when alum prices are almost exactly where they are now. Was there a price hike back then on those components when a different administration was in charge and “tariffs” weren’t in the news?
Maybe?. There prices never seem to stay the same for long. It doesn’t seem like these small guy are stock piling aluminum so the price changes go directly to the consumer.

That being said, I don’t watch the market value of alum and wait for the next deal for US made parts.

@jimvreeland inguess we will see with the mid range guys, the volume for I-9 and velocity is much greater so who knows.
 

Patrick

Overthinking the draft from the basement already
Staff member
if your competition is forced to raise their prices, so do you. why sell a superior product at a relative discount?
 

rick81721

Lothar
So 4% is price gouging? The litttle guys can/need to adjust prices more rapidly as they don’t have the buffer of the bigger companies to take up slack. So yeah, the big brands won’t show a short term difference but next year the same level bike will be more.

Before there was any talk of tariffs, I was in the market for another Paul stem. I purchased one when they first came out in 2017? And it was $100-$110, now the price is $123 to $161. Likely due to the huge aluminum price spike in January when tariffs were first threatened. So is Paul to absorb this when they are a just in time shop?

View attachment 77240
Yes, for sure some political motivation here but you can go ask Paul and White Industries yourself when they are in Philly next month.

So you think at 10% increase in a 20 cent raw material cost justifies a $20-$50 increase in finished product price?
 

Steve Vai

Endurance Guy: Tolerates most of us.
So you think at 10% increase in a 20 cent raw material cost justifies a $20-$50 increase in finished product price?

It's totally a made up number. Most of the smaller US bike companies are filled with hippies so they're all probably anti-trump and using the tariff as a way to cry wolf. I'm convinced it's all political. The rest of them, like Specialized and Giant and Trek, etc, have an actual problem coming up. As do any of us that buy anything made overseas.
 

Chris(NJ)

Well-Known Member
Maybe?. There prices never seem to stay the same for long. It doesn’t seem like these small guy are stock piling aluminum so the price changes go directly to the consumer.

That being said, I don’t watch the market value of alum and wait for the next deal for US made parts.

@jimvreeland inguess we will see with the mid range guys, the volume for I-9 and velocity is much greater so who knows.

Price changes never go to the consumer. Only price increases ;)

I’m sure you don’t watch where the price of alum is traded at daily but you did quote it with a correlation to a trade war and tariff threat being the reason. And maybe that spike did have a direct relation to the material’s value.... for a few days ....in January. Off the top of my head, I don’t know what else was happening back in January. But It’s highly unlikely Paul Conponents was trading aluminum during those days, 9 months ago.

I just wanted to point out that the current price in aluminum is not necessarily related to the administration’s policy here since it has multiple historical costs where they are now. Otherwise that stem would’ve been $123-$161 4-5 years ago. We all know Paul, or anyone else, isn’t adjusting their costs up and down based off market value and certainly not as a way to pass savings along to consumers.

As someone mentioned earlier, this is more of an opportunity. Paul and other companies will increase costs and deflect blame to a 3rd party and that is not fair. All to garner support of their political and industry position.

Costs go up. That’s life. They should just own it.
 

Chris(NJ)

Well-Known Member
It's totally a made up number. Most of the smaller US bike companies are filled with hippies so they're all probably anti-trump and using the tariff as a way to cry wolf. I'm convinced it's all political. The rest of them, like Specialized and Giant and Trek, etc, have an actual problem coming up. As do any of us that buy anything made overseas.

Yep. 100%.
 
Top Bottom