As if bikes and bike stuff wasn’t pricey enough already. Be interesting to see how all this unfolds.
if there was a global shortage, it wouldn't take tariffs to raise prices.
if they ship fewer bikes to the US, and create a local shortage, a shop may sell fewer bikes, but they will be at a higher margin,
because of the laws of supply and demand.
capitalism says if there is a void, someone will step-in to fill it.
What I am hearing from my vendors is that they are scared. The way this looks to be shaking out is a 10% tariff on most bikes and frames made in china starting next monday. If China does not bow to Trump's demands, this will bump to 25% on Jan 1st 2019.
Most of the brands are now scrambling to have their goods made in Vietnam, Thailand, Brazil, .. etc.. These potentially lesser factories will do their best to keep up with demand and match the high quality Chinese bike goods we have grown to love.
It is more likely than not that this will created a shortage in supply (for the us market) which in return could spike demand and in return prices.
One possible result is higher prices paired with lower quality.
Since the bike market is indeed global, most of what China builds for the bike industry will continue forward minus the bikes destined for the USA.
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.
Don't take my word for it. Here's what Dorel (owns Cannondale and other bike brands) is telling inventors: "…proposed tariffs recently announced in the U.S. would impact a significant number of our product categories, and is creating business uncertainty. However, our competition will be similarly affected as we will all be required to adjust pricing upwards and higher costs will ultimately be passed on to consumers."
I think that whoever is telling you this is bullshitting you, trying to sweep you up in the hype, which if you look at click-bait websites like Pinkbike, etc. they're doing a pretty good job. First, I'd find it hard to believe that anyone with half a brain for business sense is "scrambling" last minute to move an entire manufacturing operation and its embedded supply chain to a new location last minute, especially given the time it took to qualify Taiwan/China and convince us all that our bikes are made by skilled labor (not sweatshop) and craftsmen equivalent to whats made in the US. Even if you could find a supplier who could make your product turn-key, it would still take a tremendous amount of time and resources to validate and qualify production to make a product that met your existing standards. If anyone is indeed moving, it was carefully planned months and months ago. If anything, people are mapping out their contingencies and performing their due-diligence now. Second, given the volatility and gamesmanship of this trade war, I'd hazard to guess that most business are waiting to see how this shakes out instead of investing the large amount of resources required to qualify a new supplier. Also, there are probably other ways to get around this instead of moving operations since there are always loopholes in import/export laws and process.
I think that whoever is telling you this is bullshitting you, trying to sweep you up in the hype, which if you look at click-bait websites like Pinkbike, etc. they're doing a pretty good job. First, I'd find it hard to believe that anyone with half a brain for business sense is "scrambling" last minute to move an entire manufacturing operation and its embedded supply chain to a new location last minute, especially given the time it took to qualify Taiwan/China and convince us all that our bikes are made by skilled labor (not sweatshop) and craftsmen equivalent to whats made in the US. Even if you could find a supplier who could make your product turn-key, it would still take a tremendous amount of time and resources to validate and qualify production to make a product that met your existing standards. If anyone is indeed moving, it was carefully planned months and months ago. If anything, people are mapping out their contingencies and performing their due-diligence now. Second, given the volatility and gamesmanship of this trade war, I'd hazard to guess that most business are waiting to see how this shakes out instead of investing the large amount of resources required to qualify a new supplier. Also, there are probably other ways to get around this instead of moving operations since there are always loopholes in import/export laws and process.
Bikes and bike parts are not rocket science but still not t-shirts and jeans. My mom was in the garment industry and saw how work moved to China then later to Bangladesh and Eastern Europe. Quality was so terrible for items sourced from those parts of the world when compared to China. Remember when made in Japan and China was considered inferior? It will take a decade or two before we see another industrial giant emerge. China is moving away from manufacturing, almost all of my new vendors are now from China doing development, support and service oriented jobs.if there was a global shortage, it wouldn't take tariffs to raise prices.
if they ship fewer bikes to the US, and create a local shortage, a shop may sell fewer bikes, but they will be at a higher margin,
because of the laws of supply and demand.
capitalism says if there is a void, someone will step-in to fill it.
next bike cant get more expensive if you cant afford a new bike anyway
and why should I? those prices are negligible in comparison with taxes I payMAGA supporters couldn't give two shits about the price of bicycles that cost more than their cars.
MAGA supporters couldn't give two shits about the price of bicycles that cost more than their cars.
They make $65K bicycles?
Look up American Beryllium.not quite 65k but inflation considered, it’s damn close. I thought is was a typo when I saw the frame price. It was In one of those full page supplier ads back in the day- yes 1993 is back in the day.
That how much you save on taxes? Holy... no wonder you're buying park tool hammers...They make $65K bicycles?
Your Shelby in China is about the same as a super exotic. I've seen a few parked with Italians and Bentley'sThey make $65K bicycles?