The Dollar Crisis

[MTBPhysio]

I have just been looking for a new bike. Something with a bit more travel to handle my increased weight. When looking I was informed by one bike shop attendant that prices had gone up with the dollar crisis. At the next store I noted that the sale price (ie dropped from their listed RRP) was the same as the RRP listed in the bike buyers guide. I know we have dropped against the US dollar but have we gone down against China and Taiwan as well. Also base metal prices have fallen enormously. Can someone fill me in? Is this all for real or are being taken for a ride?

 

[Steve-0]

Last time i was looking for a bike, which was like october sometime, all bike shops were going to raise there price by 20% by christmas..haven't looked into prices that much since.. but if one bike shop is considerably lower then another, there playing with you.

 

[Pebble]

Giant as a brand has increased their prices, so it depends if at one store you were comparing a brand against a different brand at another store.
Also the buyers guide would have the rrp prices as correct at the time of printing, which may not necessarily be correct now.

As for bike shops I've found there is naturally a variation in pricing, one store may not be able to afford to have sales as much or as often as another store. I would imagine it also depends on manufacturer sales - like Specialized may heavily discount at the end of each season whereas Giant might not. Like wise Giant has a policy in place where you can't order a bike from another store interstate and get it posted to you unless it is shipped 100% complete or something.

Anyway before I continue carrying on too much,

 

[vogmae]

At the next store I noted that the sale price (ie dropped from their listed RRP) was the same as the RRP listed in the bike buyers guide.

With the financial crisis some paid and got stock early, so let's say they can sell that for $3000, which at the time was RRP. Stock after Christmas, paid for then, is now $4000, which is now the new RRP. So with my early stock i can say that RRP is $4000 and it's on sale at $3000. Have seen this in at least one mtb store.

 

[Tazed]

If it's too expensive, don't buy it.
Times are uneasy in retail and manufacturing right now.
Giant put their prices up (still cheaper than a lot of their competition) as they they posted their greatest earnings and highest sales figures.
They felt confident about doing this, even going into a world-wide recession, as cycling demand has risen the world over, as people ditch cars (having been stung by fuel prices and social consciousness about global warming, blah, blah, blah).
Anyway, hang on a bit and see what gives.
I'm sure there will be plenty of discounted prices soon enough.

 

[bikesarefun]

Try not to get duped by the sales guy...

Let's assume Bike X used to cost the shop $2,000, and they would sell it for $4,000. Now, with the dollar, Bike X it costs the shop $3,000, and they sell it for $5,000 to keep the same margin. The manufacturers/distributors keep everything simple in terms of margin with their RRPs.

I'm not going to complain too much about all of this - it's the way of the world.

HOWEVER: I have an issue with shops arguing that they can't do a good price on existing stock (bought at $2,000) because the new RRP is $5,000. They tend to get cought up in the size of the discount rather than the effect on their margin.

Supply and demand comes into play though I guess...

 

[Damienp]

^^

True to an extent. Dont get ripped but dont make yourself into some sort of martyr about getting the rock bottom price. While business is supply and demand you just might not get as nice a reception the next time you visit.

A decent relationship with your LBS can be hugely advantageous as i am sure we all realise.

 

[Wednesday]

Like all stated above, dont buy it now if you can make your old ride last a bit longer then do so. Come 4-5 months time '10 stock will be on the way and this will be the real tester in terms of pricing, our dollar and the state of the GFC at this time. LBS will start having sales to push out 09 stock soon after and its at this point when we can see how much hustling has gone on.

One point of interest, still be very wary of 08 bikes been pushed through at 09 prices or 'discounted for 09' is another line used. For the non savy upto date bike buff it can be a mine field if you are not carefull. I have also noticed component swapping (brakes/wheelsets etc) to be also an issue thats starting to creep in.
If your in doubt, dont buy it at the moment.
End of novel.

 

[MTBPhysio]

With the financial crisis some paid and got stock early, so let's say they can sell that for $3000, which at the time was RRP. Stock after Christmas, paid for then, is now $4000, which is now the new RRP. So with my early stock i can say that RRP is $4000 and it's on sale at $3000. Have seen this in at least one mtb store.

I think this is some of what I was seeing on the weekend.