06-28-2004, 10:51 PM
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#30 (permalink)
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| | Re: Rumors?
> 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-- Chain Reaction Bicycles
www.ChainReactionBicycles.com
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