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Am I a bit slow but witht eh climbing strength of the pound against the dollar and euro (mostly dollar) since January do we think that big mail order companies are now starting to stock parts at the more improved exchange rate. Or is it because sales are down?
Point taken - I had a look at historical rates - and were at their lowest end of 08 and beg 09 1.45 or no - now up to 1.6 so make a bit of difference on costs - 2.0 was way above norm in 08 I would say in teh last 10 years.
so at 1.4 something for $100 would be £74 - now $100 equates to £62 - quite a difference I would say - not close to the £50 it would be at 2.0 but make a fiar difference wouldn't you say?
Distributors will have bought their stock at least 3 months ago, it takes time for the exchange rate to trickle through. The pound was on a slide for 6 months last year pricing was out of date almost before it was published you just couldn't keep up. Retailers dont phone up a manufacturer and buy half a dozen bits an bobs. Most distributors will go to the big bike shows and buy/plan deliveries for the year. If the exchange rate changes they get stuffed. It's also the tab end of the production year, European manufacturing closes next month then starts making the 2010 kit.
I think they've realised that they're operating in a market. Price of fuel, steel, £:$ all favourable and no ones got any cash. Down come the prices.
(to foxyrider) well, yes - but doesn't quite explain for me the huge rises (felt like doubling but part of that was loss of discounting as well I think) in rockshox/shimano that we saw this year
I think we're now seeing the return of [i]some[/i] discounting
Is it lower prices, or just shops like Merlin desperate to get rid of old stock and generate some business?
All have a fiar point I'd say - perhaps I have my rose tinted riding specs on now I am leaving work 😉 lol
