An LBS bloke here as well, turnover on a par with a year ago, workshop very busy for this time of year, not selling quite as many new bikes but bits doing ok.
Now as for prices, currencies really do make that much difference once it’s passed on down the chain via manufacturer/wholesaler/retailer. Although i’m also surprised at the rate of increases.
The other issue is of course credit, bikes are paid for way in advance of them arriving in stores, often paid for via credit, which is alot more expensive now, that also has to be factored in.
It’s not all bad news though, I remember selling an XT mech 15 years ago and they were £44.99 then, until recently the latest XT shadow mech was £44.99 rrp, not bad really, if the products had followed the price of inflation each year you would be paying even more than todays price hikes.
There are signs that some prices may drop a little soon, after all whats the point in a warehouse full of bikes going nowhere?
However you also can’t sell a product for a small unsustainable margin in the long term if you want to continue trading.
I seriously expect a couple of brands to go to the wall within the next 12 months.