With a weakening pound and the fact bikes and bicycle related products are mostly made abroad and bought in USD, customers are being warned that prices could see significant increases for the coming year.
Halfords are one of the brands warning of possible price hikes and say that since the vote to leave the EU, they have already seen prices starting to move in Asia.
Halfords boss, Jill McDonald, states that companies who deal directly with suppliers and have their own bicycle brands (such as Halfords) are in a stronger position than local bike shops. Dealing directly with the factories in Asia means it is possible to offset possible price increases by cutting corners elsewhere.
The real concern then is for smaller stores which sell 3rd party bikes that are first imported by distributors with manufacturing and supply chain details handled by the brands themselves. These bikes, components and clothing items are easily effected by fluctuating currency values.
The bike industry isn’t the only one effected with the falling value in the pound, several food and clothing companies are also predicting price rises for 2017 as suppliers hope to pass on costs.
What do you make of all this? Is this just fear mongering or is this a very real threat?
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Look at the Giant 2017 prices – there are some significant rises there.
I know our prices are rising by 7% in December (not a related industry, but we have to buy in from abroad). I suspect we will be looking at more early in the new year too… I was expecting 10-20% in January (without the rise now) so if they pop it through as a two stage increase I will be about right.
I expect something broadly similar in the bike industry… and most others that have international suppliers.
I think the word is inevitable, locally in Oz the currency became weaker and prices went up. Add on the Yen just got stronger so that will bump up Shimano again.
The pound has plummeted, and almost everything we consume is paid for in other currencies, obviously prices will go up.
But hey, it’s what 52% of voters chose: price increases, colossal business uncertainty, job losses, recession, homes repossessed, businesses failing… but it will be better in the long term because polish people won’t be working here and you can now have their job (the job you never applied for), and the NHS is getting £350,000,000 extra a week. Have I missed anything?
Exactly what Charlie said, but I’m not bitter.
Not even the Polish wanted my job Charlie 😉
I am just waiting for people to start complaining that their bills are going to go up in the New Year for everything – 10% or so on EVERYTHING is going to feel like the worst paycut everyone has faced all at the same time.
It’s going to be brutal.
Hopefully it will spur everyone to decide that Brexit was a stupid idea, reconsider and we can all get back to business as usual. Unfortunately readers of the right wing gutter press will miss the point and blame it all on the liberal “elite”, people looking to make a quick profit and “those bloody immigrants” so we will be stuck in this sinking ship that was once called the UK.
Sorry… do I come across as angry?
Prices can go as high as they like, but if no bastard buys any new bikes, which is currently what is happening, then the RRP of new bikes is irrelevant!
…… and only those small outfits who set up predominantly as workshops, or niche outfits, are going to stand a chance of surviving. And they will have to have low overheads to do that.
Several of the bigger distributors in the bike industry seem to be suffering at the moment. It does not make sense for LBSs to use them if punters can get the goods cheaper online than the price the LBS have to pay to get the item into their shop, and there are a growing amount of examples where that is the case nowadays.
This was well underway before Brexit hit the fan. LBSs were dropping like nine pins this time last year in the SE!! It might have made it worse but it is not the cause.
You could wonder who gains? CRC? Haven’t they just laid off hundreds of staff?
Nobody told us there would be days like these… Strange days indeed!!
I didn’t vote for it so don’t blame me!