| Re: Rumors?
"Mike Jacoubowsky" <mikej1@ix.netcom.com> wrote in message news:<3k8Ec.4342$5g3.4047@newssvr27.news.prodigy.c om>...
> > To those of you in the know, or even those who enjoy speculating:
> >
> > Why do I keep hearing/reading about imminent price hikes on bikes and/or
> > components?
> > Are they true?
> > I'd like to buy new, and am wondering whether to wait until this winter,
> or
> > if I'd be wiser to act sooner.
> >
> > Thanks all,
>
> The bicycle industry is desperately *trying* to increase prices, since most
> of it's awash in red ink. That's nothing new, and prices have been held
> down by an oversupply situation. However, wholesale prices from OEMs have,
> for the first time, been ticking upward significantly. Most of this is due
> to increased demands from China, which is beginning to make itself known as
> a very large (and rapidly-growing) consumer of raw materials. Some feel
> that the demand from China will have far-reaching inflationary effects
> throughout most industries. However, much of the increased costs from China
> will be offset as production is still far cheaper there than elsewhere, so
> as more of it moves from higher-priced locales to China, prices are kept
> down (despite the fact that Chinese-manufactured goods are going up).
>
> But none of this is all that relevant to someone wanting a new bike. If you
> have a need for one now, you'll get to make use of it for several months of
> great summer riding. That adds significant value to the don't-wait side of
> the equation!
>
Mike
Thanks for the insight. I agree that if you want a new bike NOW, get
it, don't wait! However, if the Chinese are increasing their costs,
how soon will it be before these same mfrs will move their production
facilities over to other "lower-cost" countries like maybe the
Philippines or Vietnam or even Cambodia....
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