Rumors? - Page 4 - Cycling Mob: Road Cycling, Mountain Biking and More

06-28-2004, 10:51 PM

> 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
[Only registered and activated users can see links. ]

06-29-2004, 08:57 AM

"Mike Jacoubowsky" <[Only registered and activated users can see links. ]> wrote in message news:<3k8Ec.4342$[Only registered and activated users can see links. ].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....

06-29-2004, 08:57 AM

"Mike Jacoubowsky" <[Only registered and activated users can see links. ]> wrote in message news:<3k8Ec.4342$[Only registered and activated users can see links. ].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....

06-29-2004, 08:57 AM

"Mike Jacoubowsky" <[Only registered and activated users can see links. ]> wrote in message news:<3k8Ec.4342$[Only registered and activated users can see links. ].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....

06-29-2004, 08:57 AM

"Mike Jacoubowsky" <[Only registered and activated users can see links. ]> wrote in message news:<3k8Ec.4342$[Only registered and activated users can see links. ].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....

06-29-2004, 08:57 AM

"Mike Jacoubowsky" <[Only registered and activated users can see links. ]> wrote in message news:<3k8Ec.4342$[Only registered and activated users can see links. ].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....

06-29-2004, 09:14 AM

On 29 Jun 2004 09:57:33 -0700, [Only registered and activated users can see links. ] (bfd) wrote:

>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....

What's increasing is raw materials costs, particularly steel, and from
what I gather, that seems to be more or less global as Chinese
consumption rises.

Labor costs in China are still fairly low; don't let the propaganda
fool you--the interior of the country is still largely undeveloped,
and the flood of peasants migrating into the coastal cities makes for
a buyers' market in laborers.

Of course, as a Filipino, I'd love to see more action move into the
ASEAN area and particularly into the Philippines. I'd be interested
to see how costs stack up; I suspect the Chinese have other
advantages other than their low labor costs that make manufacturing
cheaper there--at least for metalbashing industries.

-Luigi

[Only registered and activated users can see links. ]
photos, rants, raves

06-29-2004, 09:14 AM

On 29 Jun 2004 09:57:33 -0700, [Only registered and activated users can see links. ] (bfd) wrote:

>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....

What's increasing is raw materials costs, particularly steel, and from
what I gather, that seems to be more or less global as Chinese
consumption rises.

Labor costs in China are still fairly low; don't let the propaganda
fool you--the interior of the country is still largely undeveloped,
and the flood of peasants migrating into the coastal cities makes for
a buyers' market in laborers.

Of course, as a Filipino, I'd love to see more action move into the
ASEAN area and particularly into the Philippines. I'd be interested
to see how costs stack up; I suspect the Chinese have other
advantages other than their low labor costs that make manufacturing
cheaper there--at least for metalbashing industries.

-Luigi

[Only registered and activated users can see links. ]
photos, rants, raves

06-29-2004, 09:14 AM

On 29 Jun 2004 09:57:33 -0700, [Only registered and activated users can see links. ] (bfd) wrote:

>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....

What's increasing is raw materials costs, particularly steel, and from
what I gather, that seems to be more or less global as Chinese
consumption rises.

Labor costs in China are still fairly low; don't let the propaganda
fool you--the interior of the country is still largely undeveloped,
and the flood of peasants migrating into the coastal cities makes for
a buyers' market in laborers.

Of course, as a Filipino, I'd love to see more action move into the
ASEAN area and particularly into the Philippines. I'd be interested
to see how costs stack up; I suspect the Chinese have other
advantages other than their low labor costs that make manufacturing
cheaper there--at least for metalbashing industries.

-Luigi

[Only registered and activated users can see links. ]
photos, rants, raves

06-29-2004, 09:14 AM

On 29 Jun 2004 09:57:33 -0700, [Only registered and activated users can see links. ] (bfd) wrote:

>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....

What's increasing is raw materials costs, particularly steel, and from
what I gather, that seems to be more or less global as Chinese
consumption rises.

Labor costs in China are still fairly low; don't let the propaganda
fool you--the interior of the country is still largely undeveloped,
and the flood of peasants migrating into the coastal cities makes for
a buyers' market in laborers.

Of course, as a Filipino, I'd love to see more action move into the
ASEAN area and particularly into the Philippines. I'd be interested
to see how costs stack up; I suspect the Chinese have other
advantages other than their low labor costs that make manufacturing
cheaper there--at least for metalbashing industries.

-Luigi

[Only registered and activated users can see links. ]
photos, rants, raves