Would love to hear from other shops out there on there experiences in the past couple of months, is it just our market down here in Florida right now? because I know in the united states up north the summer time is there season. Let me know down below if you have seen this happening in your stores around you
I e-mailed a trek dealer last week to check availability on a MTB they were showing in stock. They e-mailed me back two days later to see if i had made a decision. That has never happened to me before in 30 years of buying bikes.
J’ai parlé avec un magasin connu sur paris rien ne se vend en ce moment. Je viens d’acheter mon sl7 sworks car mon magasin fait des reprises. Pour le vélo de montagne j’ai arrêté,vélo tout le temps à nettoyer,ça avance pas il faut se taper 1h de chemins non-ludique pour enfin trouver une descente etc etc ça ne m’attire plus.
GC you’re not the only one I work for an Independent Lumber yard here in Massachusetts and sales have dropped quite a bit. We’re soon gonna closed on Saturday for the Winter and open up again in spring
North Florida bike shop .Yes last couple months have been scary slow for bike sales.Repairs are paying the bills. I question the bike shop model , but don't know how to change . Nice to hear someone being honest in the bike world.
Working in a UK bike shop and it's been very quiet these past 2/3 months. The UK didn't have a summer this year it just rained most days and now a lot of the country is flooding. Not the type of weather that encourages cycling. It's about surviving this rough patch and coming out the other side when business start to pick up again.
Thanks for the info. It's hard to have any sympathy for an industry that was all too ready to gouge its customer base when the opportunity presented itself.
lol supply and demand. No supply, high demand, the market adjusts. Additionally, local shops were mostly a victim in the crossfire here. Manufacturers raise prices, and shops need to keep their margin. It's nowhere near as bad as what is happening with cars and dealerships. Manufacturers set MSRP. and car shops add a 50% markup. I don't think I saw any bike shops doing that, at least around me in NJ (I am a shop partner)
Bikes aren’t food. It’s never going to be a case of bikes being a disposable or repeatedly consumable item, least of all when they cost thousands. The majority of cycle owners aren’t going to renew their bike every year, and those who do will struggle to find buyers willing to spend big on a used bike. Simple business economics, and the interface between stockholders and buying public is where the squeeze will be felt first, and hardest. The ramp-up in production to meet demand during covid reopening was a bit overdone, in retrospect.
All of us working at small shops shouldn’t be bundled with the major retailers price gouging bikes. Trek did a big sale then kept the prices there, because they knew they where charging to much for bikes like the marlin 5. It was 739 during covid, and now it 599. 599 is what it should’ve always been.
The prices of bikes is completely out of control. I’ve been shocked looking at what bike prices are compared to when I was in the industry 15 years ago. Cycling has become a rich man’s sport.
No, not at all. You can still buy the same low-end crap you could 15 years ago at a comparable price. However, if you want a quality bike you have to pay for it now and back then.
agreed! A high end bike in my opinion shouldn't be more than 2k in Canada with Shimano Ultegra or at the very least 105 drive train. These companies are smoking crack and people buying these $3K or more bicycles are definitely smoking it too.
If this country valued biking the way they valued cars bikes would be cheaper. But for most bikes are a hobby, and hobbies are always expensive. The initial costs of a bicycle might be as much as a motorcycle, but it doesn’t take long before that gap changes, with things like buying gas, and insurance.
Nearly all consumer goods companies have been raping the public for the past several years. They have been using the premise of "inflation" as a factor for raising prices... when the truth is they were only blowing out profits with no long-term strategy for survival. This mentality and approach is killing business and ultimately erasing innovation and competition.
There's also the issue of.... no improvement. Like.. If you have the Tarmac SL7, the only real reason you're buying the SL8 is so you can have that status IMO. If you really care about that 4 watt saving (allegedly) , buy the handlebar. That's the only difference. Not the *cork sniffer* Rest of the 99% look at those two bikes and go "why?" and move on, for that kinda price.
A good way to clear out inventory is to sell it at a reasonable price. A 20% off when the price is still double the price it should be doesn't cut it. Quit discounting and just set the prices at a more reasonable level.
The e-bike market is on fire and the deals are better than 5 years ago. Regular bikes are getting less popular as their prices climb. My 25 mile trip is now 100 miles on the e-bike with equal effort and an extra 14AH battery.
Amazing that people think that is possible!? Actually during COVID was the first time the industry had inflation in about 20 years! The current market has nothing to do with the price of bikes. There was a boom and all those extra bikes sold at once just mean less people want a new one now. Couple that with the used market saturated by people who cycling wasn't for them and the result is bust!
@@ellisbriggsbikesCovid definitely increased the inflation. If we went from 19-23 we wouldn’t have seen this big of a price jump for normal increases yearly. Bike industry deserves all this thinking the waterfall wouldn’t end.
@@thomashines8 how can the industry pay for increased costs, such as wages, rents, local taxes, utilities etc without inflation of prices? What really happened was prices were held down for 20 years until they reached breaking point at COVID. Do you still get paid the same as you did 20 years ago? When I started (2000) we used to use the Specialized Hardrock as a benchmark. It stayed at £300 for years and only increased to about £350 by 2015. In that same time my wages doubled. The thing with bikes is they are not like cans of beans, selling more adds to workshop time, so you can only sell so many unless you want to cut corners. The reality is the bike industry is so competitive that only very few make a lot of money!
I'll admit that I'm happy to hear bike companies are going down. For years now they have been shoving where the sun doesn't shine on all of us since the start of covid. The bike companies are second only to the RV industry for gouging the public for the past five years. It has left a very bad taste in my mouth and I won't soon forget it. It looks like I'm not alone.
I kept saying this all throughout the covid bike craze. The prices can only go up so high before people stop buying stuff. Those price hikes were huge, fast and unsustainable. In August 2020 I bought a basic aluminium full sus mtb for 1349 with a 10% discount. That exact model is 2200 now with a worse crankset and slightly different groupset. Frame and fork are identical. Remember the phrase "10k superbike" ? That won't even get you the high end carbon frame these days 😂
I can extrapolate this in my job. We sold so much I got money to buy all my wanted bikes and a personal project without touching my savings. All great, but my job began to open new stores all over my country and now we sell shit compared to those days. I'm fearing the worst.
Yeah it's a joke going to the trek store. Bikes that cost more than a used car and they get thrown in a garage. It's all about status symbols. Since Americans consider riding a bike to be beneath them it makes sense. I do have to admit how much bikes have changed but it doesn't justify how much price goes up. Plus there's less standardization and everybody tries to make their own sizes on frames so nothing fits together! Wtf
So glad I sold my shop in August of this year. A lot of people are using the wrong word to describe the cycling industry; it’s not greed, it’s stupidity, there’s a difference. I have worked in the industry as a sales person, mechanic, frame builder, race mechanic, and finally a shop owner. The week after I sold my shop I felt alive again. It blows my mind I had a shop for 7/8 years….about 4 years too long. It’s ugly out there for sure and a lot of nice people are going to get f’d. I wish them all well and hope they land on their feet. But yeah, I don’t miss the industry and never understood why there’s so many idiots in it (myself included). I have to run, going on a ride in a few….I have a few years to make up.
Yea I hear you there. There are so many days where I Leave the shop not even wanting to look at a bike. A lot of stress and a lot of work for really thin margins
Too many people running bike shops who do not have the required knowledge or experience in business. Also, many do not have the people skills or understanding of true customer service.
Like owning a restaurant. It is a passion based business for many. How many people sell xyz profitable non glamorous business and buy a bike shop or restaurant that proceeds to bleed cash?
@christopherludlem1602 The "non professionalism" in the bicycle business was one of the reasons spesh started aggressively advertising their tires way back. The goal was drive consumers into shops asking for their tires. Employees didn't have to know much, just get the size right. And the shop better be on the tire program to get the product and best price.
Honestly have zero feels for these bike companies. Reap what you sow. Prices have been on tear the last 5 years or more. It's about time they get hip-checked. Sorry about hard times for shops, but the industry has raped their customers for years now.
The longtime owner of the shop I support openly talks about how the best bikes in terms of quality and value were about 2010-2015 or so, then they went off the cliff, and THEN Covid came and they got greedy. Now, they're fucked.
This is so true! The bike manufacturers have been ripping off customers for years. The prices on high end bikes have gotten so insanely high that it’s beyond reason for cycling to be anything, but a golf type of sport. And a set of clubs is now waaaaay cheaper than a high end bike. I’m waiting for prices to fall, but I’m not holding my breath.
Exactly this. I'm fucking riding what I have, forever. Like forever. I got a classic road bike, a world championship winning xc setup, and a great dh/Enduro/bp ride. Fuck you now industry, pay me to buy one.
I think bike tech has pretty much peaked. A good bike from 5-10 yrs will likely still ride great and reliably while the new advancements are mostly just minor tweaks in geometry, refinements in components, that are likely imperceptible to the average rider. So, why upgrade?
Agree. Think about how many were purchased during Covid and was ridden a few times the was hung from the ceiling when the world reopened. Low mileage rides with good components at a cheap price.
Yup, my old Pro Machine runs like a champ and weighs 15lbs. Yeah the group set is "obsolete" but it works fine. To replace it with an equivalent current bike would be $20K+/and it would be heavier.
Hey, we own University Bicycle Center in Tampa and we are in the same boat. The foot traffic for bike sales are down but the week is usually made up of a few high end sales. I have to say our service department is through the roof with E-Bikes, we don’t turn anything away so we are taking in bikes other shops won’t fix. For every 10 bikes we are repairing approx 6 E-Bikes. As my reps told me to keep buying in 2020-2021 I told them no, I only bought what I thought was a safe inventory level so for that reason I am not over stocked but I have taken advantage of the sales being offered to me so right now I have quite a few bikes and parts but I feel confident we can move product before the bill is due. As for employment we have had as many as 22 employees and now we are down to 17 employees, I have not let anyone go but as they have left voluntarily we have decided to run the business with less people which helps our situation. We own our own building so for that reason we have very low overhead so we are fine. I have predicted we will see more shops close in the next 6-12 months and smaller bike brands will also have to close their doors or be absorbed by larger companies. I wish all the shops the best but the one thing I can leave you with is to provide everyone the best customer experience and they will come back. Don’t take your customers for granted they are what pay your bills.
Saw this coming during COVID. People who never cycled bought anything they could get their hands on. Now that things are back to "normal", all those people are back in their routines totally forgeting about their bikes.
I’m BRAND NEW to the cycling scene, coming over from running and I can’t get over the price of these bikes! Lol I thought racing shoes were expensive at $200
The pendulum is swinging. My local shop (been going there since 2005 and have bought 4 high end bikes now, endless parts) sold me my 2021 Pivot Switchblade XT/XTR - I asked if there was anything they could do on price and they laughed (May 2021). So, I’m laughing now. Went there today and the place is bulging with bikes and NO one was there. I needed a bleed kit for my brakes and mineral oil. The kit was $75 and the oil was $39. I walked out…..got it on Amazon for $43 and $19. I’m laughing now. I was loyal to this shop 100% before and during Covid. Not any more, and it sucks.
The bikes are just too expensive. The bike companies got greedy and sold for way higher than they should have. There's no way that a Shimano 105 equiped bike should cost more than 3k. That's including carbon wheels or a power meter.
There are two basic types of customer: the dabbler and the serious cyclist. The dabbler says oh I need to get in shape and buys a $1000 bike, rides it once or twice, and forgets it in the garage. The serious cyclist who rides 3x a week,, has 4 or 5 bikes. While this us good business for a few years, he/she has no reason to buy another bike for ten years. Each bike might get ridden once a month, so service is not expensive. I can't see price being a deterent. When I go on a club ride (Vancouver) I feel like a poor cousin on my 2022 alloy allez.
@@irvhh143 I've been on a group ride riding a 1973 Schwinn Chicago steel bike and I felt like a million bucks. Easy to say that I was the only one in the world riding that model of bike that day. You can't say the same about the other bikes everyone else was riding.
@@betenoirproductions6062 your correct. The manufacturing location was in Chicago as apposed to the later Schwinns that were made overseas. The one I had was a varsity model.
A bicycle should not cost more than a motorcycle or an automobile. It’s that simple. I have multiple bicycles, MTB, Electric, and Road. My road bike is an Ultegra equipped 1998 Klein Quantum Race. Why would I need another road bike and if I did, why should I have to pay double or triple what I paid for the Klein to get a similarly equipped bike? Nowadays, I take a budget approach, which is find the best value and improve it over time if necessary.
It’s only gonna get worse. Just wait until the banks start cutting in half your lines of credit. Some bike shops out there were to “busy” and greedy to service bike brands they didn’t carry because bike sale profit margins was easier. Thanks to you guys I (and I’m sure thousands others) turned to TH-cam tutorials and purchased my own tools. The funny part in all of this is I had left my number at one particular bike shop where I moved, they called me last week if I needed any services 🤣🤣🤣🤣. My reply, “no thanks since you guys don’t deal my brand of bike.” The crazy profits during the COVID days, blinded many bike shops consequently forgetting that we are supposed to be a community, now many will close down and those who survive will be thanks to the cycling community and not the customers who came in cus they had a little extra cash. I may sound a little bitter and perhaps I am, but man I’m 40 years old I have even taken my Toyota to a ford dealer for service and they have never said no. I take a Marin bike to a Giant dealer and they refuse to service? 👌🏽 makes no sense, bikes are all the same minus the frames. 🤷🏽♂️
Add in that some shops want to avoid working on D2C brands. I'm sorry, but I've been shopping for a new gravel bike, and the dealer brands are too expensive. The bottom-tier carbon Specialized Divirge costs about the same as a mid-tier Canyon Grizl or Lauf Seigla.
Same as the car industry, the bike industry got carried away with prices where no one can afford a bike that cost more than a motorcycle. Now that the economy is tightening down, it's even more of a long shot for someone to come in an snag a 5k+ bike. Bike companies have had years to get their production cost down by being more efficient with carbon designs. Investors of these companies are completely blinded by profit margins and if they see profits drop they get scared and force companies to sell bikes at even higher margins. But now prices are so high sales are dead. The the past few covid years were completely unrealistic and unsustainable and investors can't comprehend this fact.
@@xmateinc I’ve done 50 miles on a $150 bike in the past year, and my teenage son has done 100 miles 3 times on a $700 bike with his Boy Scout troop 🤷🏼♂️
@@CorePathway Ditch the cars and just use those bikes and see how long they last. I rode across the USA with 2 people on bikes that weren’t meant for it, and they had all kinds of problems. I was able to carry twice the weight and had 2 flats in over 4k miles. You definitely get what you pay for.
We hear this all the time lately but bike prices keep going up ridiculously. There are some exceptions, but the trend doesn't appear to show financial difficulty because chumps are still paying $7k for alloy/105 and Alex Boondocks wheels (2500g).
Tough times in a lot of industries at the moment - post covid, QE fallout has led to inflation and high rates. Wish you and your shop all the best and hope you can get through these turbulent times
Look at what a 3k groupset from Shimano/SRAM actually does. It moves back and forth electronically for a set amount of distance. For 3k... That's the engineering equivalent of power windows in a car. The western bike industry is bloated and prices are out of control. We are moving closer and closer to being able to build a top of the line bike using Chinese brands for 3-4k that is equivalent to the 10k+ bikes that western brands are selling.
Unfortunately that’s what always happens. Industry gets away with what they Can price wise and in the process their high prices invite competitors to come and destroy their market. It seems that none of them understand this basic business dynamic.
Kudos, and they wonder why Canyon made such inroads with sales, but even they have succumb to the price gouging formula!! I say we all stop buying any new bikes and see what they do from that perspective of NO DEMAND……
I sold my bicycle store after fifteen years in business in 1997. My store was in Traverse City Michigan. Mountain Bikes were not selling as well. And bike shop bands were going to be available in 1998 at big box stores. My main customer base was the family market. On top of that the year before a five thousand square foot building next to me was purchased by another bike store. My store was a quarter of their size. The family was very wealthy. Was determined at first. Then one day a potential customer wanted a very expense Bicycle that I had in stock. Wasn’t together yet. Went down stairs to grab the box so I could assemble it. To my surprise it was gone. Stolen by one of my employees. The mark up was not that much back then. That was the day that I decided I was done. Went into the financial services industry. I work less. Make more money. And have weekends off. It was a fun business. But times have changed. Kids are more interested in video games these days. I wish you the best. You definitely have to be a business warrior to be in the bicycle business. My favorite saying is how do you make a small fortune in the bicycle shop business? Start with a large one.
yes it is way harder right not to compete with sales and how many stores are opened around us plus online sales from manufacturer direct.... if we did not own the business or have a cushion from our store being so old then right now if we were to open a store right now I do not know how someone could turn a profit and be happy, it is a lot of work for little reward
Pro Bike Closet was always a ripoff! I have been reviewing their inventory for years.... and always found their stuff to be close to a retail price. I actually sent them an offer on a bike just a year ago and they never even responded.
It truly doesn't make any sense to try to sell such expensive products and expect people to buy them year in and year out. Even Claris bikes are creeping into the thousands, and I think that's really bizarre.
Agree. I bought top-end road new bikes when I turned 45, 50, 55, and now at age 63 took the plunge for a DeRosa 70th anniv Durace Di2. I ride all the bikes. Truthfully, how many bikes and how often does one need a new bike? I won’t be any faster on the newest steed, but it is a retirement gift from my late parents. If I am still riding into my 70s, next purchase will be an e-assist bike
In the UK, 10 to 15 years ago I would buy my bikes at 50% discount. Usually one or two year old models that dealers had not shifted. Still got my Six13 from 2005. Every year Giant was always clearing stock at least 30% off. Anyone seeing 15 to 20% off and thinking it's a bargain might be surprised at how things used to be. I don't know if margins are tighter these days, but I struggle to believe this with the mid to high end prices being what they are.
This is a world wide problem. Best top four Scott MTB‘s 10-15.000! These are bicycles! No one has any money. Rent, fuel, all monthly cost are 50-100 % or more than 4 years ago. Covid, millions of people bought bikes and most only buy a bike once every 10 years or so, the average person only care about the colour and the price. 65% of the Covid sales are sitting in people’s basements.. no longer being used. Virtually all new bikes here in Germany are no longer bought, they are leased, job bike or long term credit. Manufacturers whack the price up just like Scott 15,000 for their spark RC a bike which if you use two months and you try to sell it for 4500 the phone doesn’t even ring. We are all being conned st the end of the day.
Price of EVERYTHING is massively inflated. 10-15k bikes? Multi thousand dollar groupsets. Wheelsets, etc, etc. I'm LOVING the used market today. PS, half price is nothing. I want at least 80% off. I've bought tons of kit and gear this year, 2700 dollars worth. But if I paid retail, that would be over 10k. Pricing is ridiculous
This sport has became just a luxury hobby. What I hate regarding myself is that I love it so much that I keep paying insane sums for being able to practice it.
It’s has to swing back to performance based light bikes, The enthusiasts spending 10,000 on a bike are going to die off in a few more years 🤣 then what ? In the states I see no push to get new people into cycling 🤷♂️
I paid 400 for two mechanical disc 105 shifters after my old broke. That’s insane. It’s double what I expected and I actually thought about quitting cycling and start running instead. Much cheaper. The bike I bought for 1800 in 2018 is now 3200! The bike that would actually be an upgrade from my current bike is 6000! I realize I would probably not be getting a new bike for at least the next five years.
You legit have some of the best cycling content online. I use to work in the bike industry for years, it’s great getting your insider perspective on the industry even though I no longer work in the industry!
:) this means the world to me, I try my best, but sometimes life gets in the way, the store gets in the way, but I jus tlike talking bikes, I dont have the time or the equipment or the skil for film making like the other guys but i try to fill in everyone when I can
I haven't paid retail price for any bike product in years. Retail prices have been getting more and more expensive since I began cycling and I heard "yeah we don't carry that...we can order it for you" too many times that I just buy online for less and only visit the shops for occasional maintenance or the odd lube/co2 can/degreaser/etc. I hate that the shops get hurt the most in this price war...as a consumer, I can just go to Winspace/Seka/China and co when I want to buy new until pricing gets back to what we consider reasonable, but the shop loses out on $$ and I miss the shop talk and general bike shop experience.
THE ANSWER IS 100% GREED by the Bike industry nothing less you cannot say this its your livelihood your not a fool you know the truth i can buy top end motor cycles or scooters for less than a mid range racing bike my advice buy a good second hand there are hundreds for under $ 1500.
also services should be a backbone of the stores, assuming you get the stuff to provided them. I remember buying Emonda SLR during covid, guy in the shop told me not to bother him since he is selling 20 merlins any week :) well funny how the situation changes
This was always going to happen , Mechanical options should have been kept available , Now electronic equipped bikes costs a fortune , Devalues hugely and parts hard to find , Di2 10 speed parts simply dont exist here in NZ , I work with computers and basically throw them away after 5 yrs , No different with bikes and most other commodities , Its a rich mans hobby/sport , So why not just buy a e-bike or like me a nice ktm 450 way cheaper than a new "bike" ..
GC, I can’t imagine during the first summer of Covid when bikes were flying out the door, that you didn’t ask yourself “how will this affect me when Covid is over and there is a glut of bikes on the market”. My first trip to my favorite shop I asked them that exact thing, and they said they don’t know but I did and told them, the over and above sales now will be taken back later in less sales when Covid is over. And since bike shops and companies decided they’d gouge us on price in the interim, well now it’s time everyone pays. I don’t really feel that bad about it, and stand ready to get some deals when the blood letting starts.
at least I can my bike shop never gouged, bikes were ebing sold at what our sellers told us too our profit margin never increased when the prices raised they stayed the same, so it was no help to us, me and my guys here at the store within the first year werte like this has to stop eventually this cant last forever and we ordered very smart after that, our store has been around for 40 years and we have a good team but we never gouged prices even for labor at that time, maybe turned away work because too busy but never charged too much..... we were always keen on seeing what happened if someone turned off the valve for the demand, and this is it. really it is the retailers who will take the hit the big name people will be fine,
Too much inventory is one thing. Another thing is the explotion of variants. This is cost drivning. The bike industry has been to much focused on news and new stuff and too little on stuff that works and things that are compatible. Also, on the MTB side the development has gone much towards "high speed in a straight line" and riding in parks. Epscially the park-riding and focus on heavy bikes that most people need some sort of transport uphill for. This also drives cost for the customer. The MTB companies has tried to move their market from simplicity to complexity. And there is market there, but that marken is much more sensitive than the more classic simplicity oriented cyclists. Now with higher interest rates, higher cost for almost everything, bikes for +5000$ is not the first thing people are looking for. Edit: Now I have seen th whole video. There seems like the market is very different in different places. Here in my area, the most expencive stuff simply does not sale. Shops does not have them in stock any longer. What do sale is comunter bikes and relatively cheap MTBs. And e-bikes. E-bikes sales a lot. And people are using them too.
This industry have many problems. 1- companys like Gcn promoting a cycle way of life who the majority of the people now realize cannot afford anymore. 2-The global economy is going to a black hole and nobody talks about that, most people continue make a normal life because having afraid loose the life status to the neighbors. 3- this industry have many arm's...and have some arms continuing put a lot of many on the pockets, and offcourse...the money not growing on trees...for ones keeping the pockets full...anothers need close the doors of local shops. ...and so on...on my perspective only 2 things can save the industry, the change of mentality of all intervenients in this business, including the final consumers.❤
Hey, look at that! The picture I took and posted on Google is on your screen! Y’all helped me out in a pitch when I was down there training one winter. Keep up the great work. Kirk “Ironman” Corsello 😊
In my country, there are huge discounts. 20-25% off on the retail stores. Marketplace is full of second hand bikes. The retail stores are saying it’s a clearance sale. But no one is buying. Everyone is feeling the heavy inflation on the cost of living. So many people bought bikes during the pandemic, now they’re selling it. When the price of an entry level bike is the same with a motorcycle, it’s a hard sell.
A bike was one of the few ways you could unwind outside in lockdown during COVID for most people. So a 600 bike became reasonable enough for a good chunk of the population. (That and buying a dog in my country). In hindsight, it was bloody obvious that when restaurants, night clubs, pubs and gyms reopened all this abnormal grow would stop. Isn't this economy 101 or am I wrong?
Must be the chip shortage for all the insane price hike on carbon road bikes. Right? Seriously I can’t buy most stock bikes cause they restrict stem/bar/crank sizing. Let along being stuck with one or two ugly color choices. Bike industry try really hard NOT taking my money.
some extra context is that Wiggle and Chain Reaction are based in the UK which left the European economic union and that has badly affected their export sales to to Europe
Bike price went stupidly high during cov19. All big brands took advantage of it. Road bikes should never be more expensive than a motorbike. It’s just carbon and we all know how cheap carbon is
That is a very interesting take on the market that most of us consumers don’t realize. I also believe a lot of people are just holding onto their old bikes and just replacing components as needed instead of buying a complete new bike. With these higher price points, I can see why it’s more of the higher end bikes that are selling.
That’s my situation. I had to replace my mechanical disc 105 shifters and it cost me 400! That’s double the price I expected. I was actually thinking about giving up cycling for running only because of cost.
I think wider macro trends play into this. For most people bicycles are a discretionary purchase, not a necessity. In a time of high inflation, discretionary purchases are put on hold. Maybe the answer is to sell bicycles that are not only for sport and recreation, but can do double duty as a daily commuter, such as offerings from Surly. In a high inflation economy, commuting by bike saves money, as bicycle commuters spend less on filling the tank. Bike commuters also tend to be fitter and healthier, which also saves money in the long run. On the other hand maybe the kind of bikes you are actually selling, namely the very high end ones, says something about wealth distribution these days?
Convergence of two things... 1. cost of living for everything from groceries to shelter. Costs more to live. 2. inflated cost of new bikes...especially higher end bikes and related parts. When people feel the pinch, they are less prone to dispose with their savings towards 'elective' items like bicycles. Take me. I can afford a few $10K bicycles. I would never spend that much money on a bicycle and I have been a performance cyclist for decades. I build my bikes from new and used components. In Florida, I don't need disc brakes or electric shifting...or a $6K frameset. But because of bike building skill, I am outside the typical buying demographic. Name brand companies need to have a serious conversation about bicycles directed more toward the $2K price point. Only reason that pro cyclists race on $15K bicycles is because they are sponsored. Amateurs don't have to.
One issue is that young ppl don't have cars. This is a problem because they can't get to a bike race, even if it is across town. Of course for most ppl, they have to drive to ride MTB.
I use to buy high end MTB every 2-3 years and road bike every 5 years... After 25 years of competitive cycling, I am back to the beginning, not able to buy what I would like! That's crazy...
@@GCPerformance18 Maybe perhaps the majority of bicyclists/non-world class riders are realizing the gains to be had by purchasing a bike pushing 5 figures is negligible
@@luiscolon921 A 5500$ frameset costs them under 500$ from Taiwan in wholesale. Just a casual 1100% margin. This shit has gotten insane and stores that did not prepare for reality to check in again deserve to get wiped out. Carbon bike frames have been cheap since atleast 10 years, even from the high end brands.
The prices have gone through the roof. The industry is facing a market correction. People are busy paying 50% and more for housing, food, cars, and other ESSENTIAL items.
Respectfully, none of this is "crazy." This is capitalism and the free market at work. That said, you seem like a very solid dude, and I hope you come through this and continue to make a living. Peace be with you.
of course and i understand this as well, thats why I am open to talk about it, there is nothing we can do but work hard and be smart.... all we can do is do- our best
I wish I could find some sort of discount on bikes! All stores in my area have limited inventory and prices at MSRP or higher. There are less than 20 road bikes even my size (58), much less bikes I would actually be interested in buying, in the entire Omaha/Lincoln metro area. I've been looking hard for a good time trial bike, but there is literally only one TT bike in stock anywhere, and it's a 2021 Felt model that is known for having very limited aftermarket upgrade options due to odd proprietary connections and interfaces of cockpit and frame. The Specialized dealer said that the Shiv TT bikes aren't even available for sale to the general public, only to factory sponsored athletes. Trek doesn't have a single Speed Concept in stock in my entire state, and only one in a too-small size within 5-6 hours drive time. Cervelo is about the same story as Trek. I'm really surprised that it's this hard to buy a bike these days!
Before covid I was looking to by a top end Specialized S7 road bike at $5800. During covid I couldn’t even buy one cause they were nowhere to be found and the price had jumped to $8500. At $5800 I thought the price was ridiculous, $8500 is insane for a bike!
Most people I know are spending their money on upgrading the bikes they already have as second hand bike prices are so poor at the moment. What was a great idea in lockdown has now ended up in the shed unused!. Most new cyclists loved riding on empty roads but now the traffic is back its another world. Die hard cyclists are tending to just upgrade wheels, carbon accessories just getting the weight down or for cosmetic reasons as prices for the above are competitive. Why spend 3/4 grand on a bike and still have to purchase carbon wheels etc?.
The problem is all these sales at 20% off are still higher than they were in 2019. Even if we didn’t have covid we wouldn’t have had this much inflation in this industry. Once you become greedy it eventually bites you in the ass. Bike shops will be forced to have big sales or shut the doors. People don’t want to pay these prices for bikes. Just like now all the realtors are still trying to tell everyone this is the time to buy. No the hell it ain’t. Every outdoor industry is still trying to convince everyone that this is the new normal. Well it seems like the consumer ain’t buying what everyone’s saying and selling. As for the used market. Some of these people still think they can get covid price. Those times are OVER in the used world. Wake up people! Even a S-Works for half price is too much. Every bike shop going to give me blue book price but these used people act like that doesn’t exist on their world..Interesting times ahead!! We got 6-8 riders in my group who would like to upgrade from high end aluminum with 105 to Carbon but at these prices were all like no thanks!!
This last summer was hot AF though. One of the hottest summers I can recall. My honest opinion on bikes is that the stuff from 2023 isn't so much better than the stuff from 2013. I built two bikes since I started riding 1 year ago, and the only thing I bought brand new was a brakeset. I did go to a rather high end bike shop for a fitting beforehand, but I noticed that their MO in addition to bike sales is to churn charity bike rides. You're expected to raise a at least $10 per mile to participate in anything. While it was a good experience, I'm not that clientele that can just plunk down a couple grand and then keep dropping a thousand bucks year after year.
I see two glaring factors: - Massive inflation created during CV (~70% of the money supply printed) - Bike companies over-reacted (and most outdoor companies) and ordered way too much based on new customers who couldn’t travel or do anything else. Time to re-adjust and go back to normal customer base. I also still find most bike prices are more expensive than people can handle now and are largely necessary to compensate for massive company overhead and growth models rather than healthy sustaining. I bought a 2021 Forbidden Druid XT (with Fox 36 Performance Elite/DPX2) for $5200 until the recent relaunch of the new model, the same exact bike was ~$6700 earlier this year. That was 100% cost increase from shipping and inflation. That said, I would not purchase the new model for $7200 because I’m not making more money and the dollar has been devalued. On top of that, I don’t think it’s worth $7200. So I will keep my bike working as long as I can or buy a “similar” bike for like $3-5K (YT, etc.). Just not feasible in this economy.
In Canada, the large sportswear company Louis Garneau (which owns other Canadian brands like Sugoi) also saw bankruptcy protection, sought private equity and had to significantly cut back their Canadian operations. The decline of European orders from large retailers was said to have set things off, but I think they over extended themselves when they acquired Sugoi. Cannondale was sold by Canadian company Dorel a few years ago to Pons, a Dutch company that holds Focus and other brands. And of course, Mr. Colnago sold his majority share to the Emirati company owning the race team and the Colnago brand. There are too many bike shops and bike companies took a huge leap of faith in trying to establish the $10K bike as the norm for an enthusiast, while at the same time the direct-to-consumer Asian companies like Winspace entered the market, after doing contract manufacturing for the big brands. What is Factor going to do?
I am good friends with louis garneau he comes down here and rides and stops in the store from time to time. We always talk about the industry and how it is going, such a nice guy
@@GCPerformance18 That's great to hear! I know athletes who have raced on his sponsored teams and they all say the same thing about him: such a nice, human guy. I go out of my way to wear LG (even when has been difficult to find) because it is very well designed. I have watched all your videos and think you should do one about the history of your family business. Independent shops are disappearing now, and it is very interesting to hear your industry insight from a retailer perspective. You are the only bicycle retailer that features stuff that they may not even sell (including direct-to consumer) and talks about how the market is going, from an honest perspective.
I wish the bike industry would figure out that not everyone wants disk brakes. 90% of my mountain bike troubles were with the brakes. I finally switched to cable-pull disks - it's better but that squeal is still annoying. Bring back rim brakes! I would love to upgrade my road bike but the selection of rim brake options is prohibitive and I REFUSE to buy a disk brake road bike.
Ragarding Sigma-sports /Wiggle/Chain Reaction, don't underestimate the impact of Brexit. Before Brexit Wiggle was one of the e-commerce shops to go in EU , since then, no, too complicated taxes shipping time, send back, people avoid this. So they lost huge chunks of their business and just the UK market is much too small
At the store I work at its been a trickle, we sell Giant, Norco, Fit, Haro to name a few, I basicly saw this coming early on and have been trying to warn the store manager , but things have been insanely slow not only in sales, but in service too, giving me memories of the 2008 recession where i saw a similiar thing, of people just not having the discressionry dollars for a new bike, etc , let alone servicing their current bike
No sympathy for the big players (Specialized especially), road frame costs are absolutely ridiculous and there is ton of margin in those. There's no way the R&D, mold costs, other overhead and direct unit costs justify $5500USD for a 700g road frame, it's insanity. It sucks for the small shops and middle market guys who are on thin margins already having to deal with it, but screw the big players for those ridiculous frame costs.
When you're selling a simple cycle for the same price as a motorcycle,it needs to have something special, the problem is,the cycle industry doesn't listen to its customers.pressfit bbs, never worked,should have but the skill set of the engineers wasn't good enough.Disc brakes which add a ton of weight,which for 90% of us aren't needed, internal wiring,pain in the butt, could go on but that's the issue,who is listening to the cyclists?
Bike brands put certain models and SKUs on sale in the spring and they have been in perpetual sales pricing. People have put a new bike purchase on pause and waiting for the prices to come down even more.
Judging by the many comments herein, I think it is obvious to many where industry has caused this......and no coincidence that you see much lower priced (and some decent) kit coming from China brands to exploit the lack of reasonable value priced product.....because the domestics abandoned their traditional lower to mid tier market segment customer in favor of ever increasing "spec" at ever increasing prices. Less volume, more exotic, more profit. Always happens (been in a similar industry in product management). but abandon the lower and middle tier, lower profit but greater volume, market segments at your own peril.
Still riding my latest build from 2017. May upgrade the wheels and brakes for next season but will probably keep riding it until it breaks. I think more and more people hold on to their older bikes rather than change them more frequently. We've reached a point of only marginal gains with every new bike/tech that is announced. There's no point in buying new bikes.
Was saving for a new trek last year to replace my giant anthem. When the LBS told me the cost, I genuinely laughed and went over to the motorcycle dealership. 6k I got a new KLX and bought all the gear and still spent less than the Trek Slash. Found a used Beta 250 trials motorcycle for 1k including a rack. I'm still under what Trek wanted for that Slash. Cycling my entire life and cycling prices literally made the choice to switch to moto. for me.
The market is bound to crash when bicycles start getting as expensive as cars. The demand raised for a bit and manufacturers took advantage by raising prices as high as they can get away with. Now times are a lot harder financially and people don’t have the money to spend on a new bike that cost more than a used car.
We have been going good this year and it will be my shop's best year ever. Things have fallen off fairly hard in September and October though. Still happy for best year ever!
The pandemic stimulus windfall gave many lower income consumers a false sense of affluence and they spent accordingly. Fast forward to the present, those funds are long gone and inflation is crippling their purchasing power. Bare necessities for survival have supplanted boutique bicycle trinkets.
Bicycles are too expensive at every level. There is no reason for a bike to cost $8000, even pro-level. Also it appears that the manufactures are eating their young.
they have always been this pricy I just think cost of living and inlfaiton right now are super high but back in 2012 there were 12,000 bikes and also 8000 bikes
This is so interesting. I've been looking for a new bike for a few months and most the shops have been telling me that getting any inventory right now is crazy difficult. Basically they have stock, and if the size doesnt fit you you're SOL. I wonder if there's some distributor related fuckery that's causing all this.
really?? so a lot of the brands I know are in stock, the only one that is very hard to find right now is the specialized tarmac sl8, but even that is starting to come in, I know of tons of stores who have stuff in strock now this is isnt every single store there can be isolated inceidenets that maybe the stores your going to dont have the alot of options
Pure greed, I bought an Orbea Gain e-bike in June( Spain), and a €500 battery extender. Total price €5250+. I tried to buy a Specialized creo, but there wasn't one in the whole of Spain. I was told I couldn't order one according to Specialized. They are keeping the stock low and that in turn keeps the prices high. P.s. Last July I bought a new Honda pcx 125 scooter for €3500. You just couldn't make it up.
54% of inflation is due to corporate profits/price gouging. They hide behind inflation to get away with it. Now they keep the prices high and people don't have the disposable income. I would have purchased a new bike by now but NO WAY. Too expensive. They should have lowered prices earlier. Anyway, good luck to you GC.
There is a simple solution for that , prices drop by 50% for all lvl of bikes , then on top of that do 20-30% discount ,even that they will have huge profit anyway as 99% of come from China . End of the day everyone will be happy
The industry has gone mad. Big brands want £6-7k for a mid range bike comprising of a 2nd tier Carbon Frame and Ultegra groupo. For £3.5 the big brands will sell you what is now termed an "entry level" bike comprising of a 3rd tier Carbon Frame and 105 groupo!
I believe that Wiggle/Chain Reaction used to sell a lot of OEM stuff, i.e. parts that were supposed to go on bikes for retail sale. The parts would often come in plain packaging or in a box with Chain Reaction's name rather than a Shimano's box. There were also "grey imports", but all this stopped during covid because parts were in short supply and bike brands needed everything they could get. Ever since then, Wiggle/Chain Reaction seem to have had problems. The phenomenon of supply-chain shortages leading to an over-reaction is sometimes referred to as a "bull-whip" effect because a small disturbance at the start of the supply chain results in a big disturbance at the final end, i.e. the retail shops. Another problem is that high-risk strategies give high rewards in good times but high losses in bad times: cutting back because bad times might be coming could mean you lose out. Perhaps more fundamentally, the industry is selling non-essential items, often of ludicrous value, and has thrived on people buying something new rather than looking after what they have. In which alternative universe does it make sense for a push bike to cost $12,000? Many of these bikes are made, or partly made, in China, where the average wage is around $12,000 per year. It is sad for those affected, but industry sectors that rely on peoples disposable income are likely to be subject to these kinds of problems.
Cool addition with the greenscreen! Some tips: lighting is the most important to make it look good. Try to light the screen without lighting yourself; this will reduce shadows. Also more of a preference but many people have the camera at the bottom of the video that way the cutoff isn't as drastic.
Fantastic insider info, thanks for these insights, and I note that you called it ages ago. Sorry to hear its rough times, you would be my guy if I was in florida. Interesting insight on fire sale of SRAM parts, what's shimano saying? I remember that shimano parts were like gold dust in pandemic and they simply would not invest in manufacturing for precisely this reason, they got burned expanding capacity a few years back and did not want to repeat, but what about now? Shimano parts holding their value? Freaky to see your head and shoulders floating all over the place, need to up your green screen game to match your ASMR game son! 😂
The southwest is somewhat insulated from this, but discounted sales are driving a lot - a lot of us in the industry saw the writing on the wall when the bike boom hit - namely that the levels would persist for 2, mayyybe 3 years but then there would be a drastic shrink. The writing is on the wall, those with the stomach and financial resources will make it through the coming months but this winter will be a bigger struggle. For the brick and mortar shops that have no online presence, I urge you to get on the e-commerce train as that is outpacing retail by 2-3 times in mo they revenue (for properly set up operations). Dark times ahead there is no sugar coating this, but good time for savvy consumers or investors
What did the industry expect with 15 and 20 thousand dollar bikes!!! Are you serious? Bikes cost more tham motor cycles now how crazy is that? Oh lets just raise the price these suckers will pay for it. I don't think so! This is crazy!!!
@@kevinburke1325nope they're just saying it's a legit market opportunity to take market share. You could loss lead your way into dominating the whole industry if you have the pockets. Legit strategy
Bicycle shops don't want to do service anymore. I used to love watching the service guy at the local shop, he was good, could fix anything in record time, those days are over. You're on your own, you have to do everything yourself now.
Don't forget Chinese brands really stepping up their game as well as components sold overseas. I managed to get Ultegra components from Taiwan for cheaper than any western seller, only sacrificing warranty and some shipping time.
Absolutely, a few models of even box store bikes have come a long way. some made in Taiwan. These are selling for just under $400.00 with decent componets. Very attractive to beginners. They can't seem to keep them in stock. With all this said, the bust isn't just in Bikes. I work in manufacturing and this year has been dismal across the board. The cheap money has dried up and high interest rates do not help anyone.
The used market up here (Toronto) is packed with good stuff at really cheap prices. I just bought a bike for $200 with brand new conti tires, medium range groupset and saddle that, on its own, would cost almost that to purchase new. Yeah, some people must have the latest S-Works and they will continue to buy new....but anyone else can probably save 80% by going used.
Stuff is just too expensive, and cycle stuff is just crazy. They have been on the death spiral for too long, selling to an ever smaller cohort who have the cash to spend. They have forgotten the normal cyclist, I only replace stuff when it is worn out , including a bike (perhaps once every 4 years ish). I do not have the money to spend thousands on a bike or hundreds for a pair of bib shorts made in the far east!! They need to get real.
Would love to hear from other shops out there on there experiences in the past couple of months, is it just our market down here in Florida right now? because I know in the united states up north the summer time is there season. Let me know down below if you have seen this happening in your stores around you
I e-mailed a trek dealer last week to check availability on a MTB they were showing in stock. They e-mailed me back two days later to see if i had made a decision. That has never happened to me before in 30 years of buying bikes.
J’ai parlé avec un magasin connu sur paris rien ne se vend en ce moment. Je viens d’acheter mon sl7 sworks car mon magasin fait des reprises. Pour le vélo de montagne j’ai arrêté,vélo tout le temps à nettoyer,ça avance pas il faut se taper 1h de chemins non-ludique pour enfin trouver une descente etc etc ça ne m’attire plus.
GC you’re not the only one I work for an Independent Lumber yard here in Massachusetts and sales have dropped quite a bit. We’re soon gonna closed on Saturday for the Winter and open up again in spring
North Florida bike shop .Yes last couple months have been scary slow for bike sales.Repairs are paying the bills. I question the bike shop model , but don't know how to change . Nice to hear someone being honest in the bike world.
Working in a UK bike shop and it's been very quiet these past 2/3 months. The UK didn't have a summer this year it just rained most days and now a lot of the country is flooding. Not the type of weather that encourages cycling. It's about surviving this rough patch and coming out the other side when business start to pick up again.
Thanks for the info. It's hard to have any sympathy for an industry that was all too ready to gouge its customer base when the opportunity presented itself.
Wow
lol supply and demand. No supply, high demand, the market adjusts. Additionally, local shops were mostly a victim in the crossfire here. Manufacturers raise prices, and shops need to keep their margin. It's nowhere near as bad as what is happening with cars and dealerships. Manufacturers set MSRP. and car shops add a 50% markup. I don't think I saw any bike shops doing that, at least around me in NJ (I am a shop partner)
@@SlowDriverSean Great post. They didn't anticipate meeting demand. That's the game in business. you need to slow down before you get stacked
Bikes aren’t food. It’s never going to be a case of bikes being a disposable or repeatedly consumable item, least of all when they cost thousands. The majority of cycle owners aren’t going to renew their bike every year, and those who do will struggle to find buyers willing to spend big on a used bike. Simple business economics, and the interface between stockholders and buying public is where the squeeze will be felt first, and hardest. The ramp-up in production to meet demand during covid reopening was a bit overdone, in retrospect.
All of us working at small shops shouldn’t be bundled with the major retailers price gouging bikes. Trek did a big sale then kept the prices there, because they knew they where charging to much for bikes like the marlin 5. It was 739 during covid, and now it 599. 599 is what it should’ve always been.
The prices of bikes is completely out of control. I’ve been shocked looking at what bike prices are compared to when I was in the industry 15 years ago. Cycling has become a rich man’s sport.
No, not at all. You can still buy the same low-end crap you could 15 years ago at a comparable price. However, if you want a quality bike you have to pay for it now and back then.
@@brianbassett4379 what is the difference between low-end crap and a quality bike, can you explain it with some examples?
When a bicycle costs as much as a motorcycle, the bicycling manufacturers need to stop being so greedy or go out of business.
100% its insane, but the problem is the purist and elitist within the biking world, they are some of the most stupid people on earth.
agreed! A high end bike in my opinion shouldn't be more than 2k in Canada with Shimano Ultegra or at the very least 105 drive train. These companies are smoking crack and people buying these $3K or more bicycles are definitely smoking it too.
If this country valued biking the way they valued cars bikes would be cheaper. But for most bikes are a hobby, and hobbies are always expensive. The initial costs of a bicycle might be as much as a motorcycle, but it doesn’t take long before that gap changes, with things like buying gas, and insurance.
@@xmateinc Premium bicycles would warrant protecting them with insurance as well.
Some of these companies are greedy. They have raised the prices too high and consumers are not buying.
@user-xq6zt5ho7dRoad bikes are approaching $15,000.00. Come on
Nearly all consumer goods companies have been raping the public for the past several years. They have been using the premise of "inflation" as a factor for raising prices... when the truth is they were only blowing out profits with no long-term strategy for survival. This mentality and approach is killing business and ultimately erasing innovation and competition.
Some?
I’ve been cycling for the past 30 years, I will never pay $14,000 for a bike. Prices are just ridiculous, heavier and less aero with disc brakes.
There's also the issue of.... no improvement. Like.. If you have the Tarmac SL7, the only real reason you're buying the SL8 is so you can have that status IMO. If you really care about that 4 watt saving (allegedly) , buy the handlebar. That's the only difference. Not the *cork sniffer*
Rest of the 99% look at those two bikes and go "why?" and move on, for that kinda price.
A good way to clear out inventory is to sell it at a reasonable price. A 20% off when the price is still double the price it should be doesn't cut it.
Quit discounting and just set the prices at a more reasonable level.
The e-bike market is on fire and the deals are better than 5 years ago. Regular bikes are getting less popular as their prices climb. My 25 mile trip is now 100 miles on the e-bike with equal effort and an extra 14AH battery.
@@billybbob18So go on and invest in ebikes. Most of us remember the time before Covid.
Amazing that people think that is possible!? Actually during COVID was the first time the industry had inflation in about 20 years! The current market has nothing to do with the price of bikes. There was a boom and all those extra bikes sold at once just mean less people want a new one now. Couple that with the used market saturated by people who cycling wasn't for them and the result is bust!
@@ellisbriggsbikesCovid definitely increased the inflation. If we went from 19-23 we wouldn’t have seen this big of a price jump for normal increases yearly. Bike industry deserves all this thinking the waterfall wouldn’t end.
@@thomashines8 how can the industry pay for increased costs, such as wages, rents, local taxes, utilities etc without inflation of prices?
What really happened was prices were held down for 20 years until they reached breaking point at COVID.
Do you still get paid the same as you did 20 years ago?
When I started (2000) we used to use the Specialized Hardrock as a benchmark. It stayed at £300 for years and only increased to about £350 by 2015. In that same time my wages doubled.
The thing with bikes is they are not like cans of beans, selling more adds to workshop time, so you can only sell so many unless you want to cut corners.
The reality is the bike industry is so competitive that only very few make a lot of money!
I'll admit that I'm happy to hear bike companies are going down. For years now they have been shoving where the sun doesn't shine on all of us since the start of covid. The bike companies are second only to the RV industry for gouging the public for the past five years. It has left a very bad taste in my mouth and I won't soon forget it. It looks like I'm not alone.
I kept saying this all throughout the covid bike craze. The prices can only go up so high before people stop buying stuff. Those price hikes were huge, fast and unsustainable. In August 2020 I bought a basic aluminium full sus mtb for 1349 with a 10% discount. That exact model is 2200 now with a worse crankset and slightly different groupset. Frame and fork are identical. Remember the phrase "10k superbike" ? That won't even get you the high end carbon frame these days 😂
now its 20k superbike, ahaha, back in 2012 i got a Tiagra Trek with 1k AUD, now u need to pay 3k AUD for the same groupset
I can extrapolate this in my job. We sold so much I got money to buy all my wanted bikes and a personal project without touching my savings. All great, but my job began to open new stores all over my country and now we sell shit compared to those days. I'm fearing the worst.
Yeah, pretty sure the entire biking community saw the obvious, it's really odd that the manufacturers were so blind too it.
Covid got the bike shops hopes up it was only a matter of time before we seen a decline and troubles hit the industry
Yeah it's a joke going to the trek store. Bikes that cost more than a used car and they get thrown in a garage. It's all about status symbols. Since Americans consider riding a bike to be beneath them it makes sense.
I do have to admit how much bikes have changed but it doesn't justify how much price goes up. Plus there's less standardization and everybody tries to make their own sizes on frames so nothing fits together! Wtf
So glad I sold my shop in August of this year. A lot of people are using the wrong word to describe the cycling industry; it’s not greed, it’s stupidity, there’s a difference.
I have worked in the industry as a sales person, mechanic, frame builder, race mechanic, and finally a shop owner.
The week after I sold my shop I felt alive again. It blows my mind I had a shop for 7/8 years….about 4 years too long.
It’s ugly out there for sure and a lot of nice people are going to get f’d. I wish them all well and hope they land on their feet.
But yeah, I don’t miss the industry and never understood why there’s so many idiots in it (myself included).
I have to run, going on a ride in a few….I have a few years to make up.
Yea I hear you there. There are so many days where I
Leave the shop not even wanting to look at a bike. A lot of stress and a lot of work for really thin margins
Exactly. Tired of the dark circled bloodshot eyes. Going back to owning rental properties and riding for fun.
Too many people running bike shops who do not have the required knowledge or experience in business.
Also, many do not have the people skills or understanding of true customer service.
Like owning a restaurant. It is a passion based business for many. How many people sell xyz profitable non glamorous business and buy a bike shop or restaurant that proceeds to bleed cash?
@christopherludlem1602
The "non professionalism" in the bicycle business was one of the reasons spesh started aggressively advertising their tires way back. The goal was drive consumers into shops asking for their tires. Employees didn't have to know much, just get the size right. And the shop better be on the tire program to get the product and best price.
Honestly have zero feels for these bike companies. Reap what you sow. Prices have been on tear the last 5 years or more. It's about time they get hip-checked. Sorry about hard times for shops, but the industry has raped their customers for years now.
The longtime owner of the shop I support openly talks about how the best bikes in terms of quality and value were about 2010-2015 or so, then they went off the cliff, and THEN Covid came and they got greedy. Now, they're fucked.
@@charliedillon1400 You basically nailed it. Feels sorry for the local bike shops, not for the manufacturers. Karma is coming.
This is so true! The bike manufacturers have been ripping off customers for years. The prices on high end bikes have gotten so insanely high that it’s beyond reason for cycling to be anything, but a golf type of sport. And a set of clubs is now waaaaay cheaper than a high end bike. I’m waiting for prices to fall, but I’m not holding my breath.
Exactly this. I'm fucking riding what I have, forever. Like forever. I got a classic road bike, a world championship winning xc setup, and a great dh/Enduro/bp ride. Fuck you now industry, pay me to buy one.
@@larry_ellison I'm with that guy ^
the bike bubble has to burst, and i can't wait to see big brands on their knees! they have played us enough...
I think bike tech has pretty much peaked. A good bike from 5-10 yrs will likely still ride great and reliably while the new advancements are mostly just minor tweaks in geometry, refinements in components, that are likely imperceptible to the average rider. So, why upgrade?
Agree. Think about how many were purchased during Covid and was ridden a few times the was hung from the ceiling when the world reopened. Low mileage rides with good components at a cheap price.
That’s me.
Yup, my old Pro Machine runs like a champ and weighs 15lbs. Yeah the group set is "obsolete" but it works fine. To replace it with an equivalent current bike would be $20K+/and it would be heavier.
Well, I moved to a new place which is completely flat. No hills.
So, speed is more of an advantage then climbing gears.
So yeah...a change is due.
93 Merlin rides from day 1. Light, fast, 17 pounds.
Hey, we own University Bicycle Center in Tampa and we are in the same boat. The foot traffic for bike sales are down but the week is usually made up of a few high end sales. I have to say our service department is through the roof with E-Bikes, we don’t turn anything away so we are taking in bikes other shops won’t fix. For every 10 bikes we are repairing approx 6 E-Bikes. As my reps told me to keep buying in 2020-2021 I told them no, I only bought what I thought was a safe inventory level so for that reason I am not over stocked but I have taken advantage of the sales being offered to me so right now I have quite a few bikes and parts but I feel confident we can move product before the bill is due. As for employment we have had as many as 22 employees and now we are down to 17 employees, I have not let anyone go but as they have left voluntarily we have decided to run the business with less people which helps our situation. We own our own building so for that reason we have very low overhead so we are fine. I have predicted we will see more shops close in the next 6-12 months and smaller bike brands will also have to close their doors or be absorbed by larger companies. I wish all the shops the best but the one thing I can leave you with is to provide everyone the best customer experience and they will come back. Don’t take your customers for granted they are what pay your bills.
Wellbuilt Bikes all ways tell me they have been really busy every time I go in there. They're just having a hard time finding a good mechanic.
And y'all have that awesome bike infrastructure just west of downtown they did.
Wish we got that in SoFlo.
Miss Tampa!
Saw this coming during COVID. People who never cycled bought anything they could get their hands on. Now that things are back to "normal", all those people are back in their routines totally forgeting about their bikes.
Or worse yet, they’re selling them on the used market and further disincentivizing people to buy new
And I’m waiting for those bikes to be dad garage bikes in the next year that I can snatch up for a cool 50 dollars!
@@cartilageheadselling on the used market is a great thing to do! The only people who would tell you different is a bike salesman!
Pure facts!
. New to cycling, what good website to buy good pre owned bike?
I’m BRAND NEW to the cycling scene, coming over from running and I can’t get over the price of these bikes! Lol I thought racing shoes were expensive at $200
The pendulum is swinging. My local shop (been going there since 2005 and have bought 4 high end bikes now, endless parts) sold me my 2021 Pivot Switchblade XT/XTR - I asked if there was anything they could do on price and they laughed (May 2021). So, I’m laughing now. Went there today and the place is bulging with bikes and NO one was there. I needed a bleed kit for my brakes and mineral oil. The kit was $75 and the oil was $39. I walked out…..got it on Amazon for $43 and $19. I’m laughing now. I was loyal to this shop 100% before and during Covid. Not any more, and it sucks.
Sucks… for them
Appreciate the transparency GC keeping it real. Hope you guys get through the slower months.
Thank you for this!!! it is business and we will get through it, just have to be smart and level ehaded
The bikes are just too expensive. The bike companies got greedy and sold for way higher than they should have. There's no way that a Shimano 105 equiped bike should cost more than 3k. That's including carbon wheels or a power meter.
There are two basic types of customer: the dabbler and the serious cyclist. The dabbler says oh I need to get in shape and buys a $1000 bike, rides it once or twice, and forgets it in the garage. The serious cyclist who rides 3x a week,, has 4 or 5 bikes. While this us good business for a few years, he/she has no reason to buy another bike for ten years. Each bike might get ridden once a month, so service is not expensive.
I can't see price being a deterent. When I go on a club ride (Vancouver) I feel like a poor cousin on my 2022 alloy allez.
@@irvhh143 I've been on a group ride riding a 1973 Schwinn Chicago steel bike and I felt like a million bucks. Easy to say that I was the only one in the world riding that model of bike that day. You can't say the same about the other bikes everyone else was riding.
@@Speedy.V Chicago is the city of manufacture, not the model. 😉 Maybe it's a Schwinn Paramount? If so, nice!
@@betenoirproductions6062 your correct. The manufacturing location was in Chicago as apposed to the later Schwinns that were made overseas. The one I had was a varsity model.
A bicycle should not cost more than a motorcycle or an automobile. It’s that simple. I have multiple bicycles, MTB, Electric, and Road. My road bike is an Ultegra equipped 1998 Klein Quantum Race. Why would I need another road bike and if I did, why should I have to pay double or triple what I paid for the Klein to get a similarly equipped bike? Nowadays, I take a budget approach, which is find the best value and improve it over time if necessary.
It’s only gonna get worse. Just wait until the banks start cutting in half your lines of credit. Some bike shops out there were to “busy” and greedy to service bike brands they didn’t carry because bike sale profit margins was easier. Thanks to you guys I (and I’m sure thousands others) turned to TH-cam tutorials and purchased my own tools. The funny part in all of this is I had left my number at one particular bike shop where I moved, they called me last week if I needed any services 🤣🤣🤣🤣. My reply, “no thanks since you guys don’t deal my brand of bike.”
The crazy profits during the COVID days, blinded many bike shops consequently forgetting that we are supposed to be a community, now many will close down and those who survive will be thanks to the cycling community and not the customers who came in cus they had a little extra cash. I may sound a little bitter and perhaps I am, but man I’m 40 years old I have even taken my Toyota to a ford dealer for service and they have never said no. I take a Marin bike to a Giant dealer and they refuse to service? 👌🏽 makes no sense, bikes are all the same minus the frames. 🤷🏽♂️
Add in that some shops want to avoid working on D2C brands. I'm sorry, but I've been shopping for a new gravel bike, and the dealer brands are too expensive. The bottom-tier carbon Specialized Divirge costs about the same as a mid-tier Canyon Grizl or Lauf Seigla.
I got my Poseidon for $800. Picked up local. Gravel bikes sell for wayyy too much.
Just do your own maintenance, it's simple and you save alot of money.
Good learning experience.
@@FFTorchedmost shops don’t want to work on D2C ebikes. Even those ill work on any part that isn’t the electronics on those crappy amazon ebikes.
Same as the car industry, the bike industry got carried away with prices where no one can afford a bike that cost more than a motorcycle. Now that the economy is tightening down, it's even more of a long shot for someone to come in an snag a 5k+ bike. Bike companies have had years to get their production cost down by being more efficient with carbon designs. Investors of these companies are completely blinded by profit margins and if they see profits drop they get scared and force companies to sell bikes at even higher margins. But now prices are so high sales are dead. The the past few covid years were completely unrealistic and unsustainable and investors can't comprehend this fact.
Pure greed from their respective senior management. Turns out that people don't want to be ripped off. Good for buyers, bad for retailers.
I have never understood $1000 bikes much less $5000 bikes. 🤷🏼♂️
@@CorePathwayyou probably don’t ride anymore then around the block either.
@@xmateinc I’ve done 50 miles on a $150 bike in the past year, and my teenage son has done 100 miles 3 times on a $700 bike with his Boy Scout troop 🤷🏼♂️
@@CorePathway Ditch the cars and just use those bikes and see how long they last. I rode across the USA with 2 people on bikes that weren’t meant for it, and they had all kinds of problems. I was able to carry twice the weight and had 2 flats in over 4k miles. You definitely get what you pay for.
We hear this all the time lately but bike prices keep going up ridiculously. There are some exceptions, but the trend doesn't appear to show financial difficulty because chumps are still paying $7k for alloy/105 and Alex Boondocks wheels (2500g).
I think about new truck prices. A Raptor R for 150k+
With the exception of Toyota, 80k for a basic Ram, Dodge, or Chevy?
Tough times in a lot of industries at the moment - post covid, QE fallout has led to inflation and high rates. Wish you and your shop all the best and hope you can get through these turbulent times
Quantitative easing royally butt-fucked the wage slave
Look at what a 3k groupset from Shimano/SRAM actually does. It moves back and forth electronically for a set amount of distance. For 3k... That's the engineering equivalent of power windows in a car. The western bike industry is bloated and prices are out of control. We are moving closer and closer to being able to build a top of the line bike using Chinese brands for 3-4k that is equivalent to the 10k+ bikes that western brands are selling.
Unfortunately that’s what always happens. Industry gets away with what they Can price wise and in the process their high prices invite competitors to come and destroy their market. It seems that none of them understand this basic business dynamic.
Great example with the car windows. Big prices for what is really comman tech.
Kudos, and they wonder why Canyon made such inroads with sales, but even they have succumb to the price gouging formula!! I say we all stop buying any new bikes and see what they do from that perspective of NO DEMAND……
Raising prices over 50% and blaming it on inflation. My ass.
I sold my bicycle store after fifteen years in business in 1997. My store was in Traverse City Michigan. Mountain Bikes were not selling as well. And bike shop bands were going to be available in 1998 at big box stores. My main customer base was the family market. On top of that the year before a five thousand square foot building next to me was purchased by another bike store. My store was a quarter of their size. The family was very wealthy. Was determined at first. Then one day a potential customer wanted a very expense Bicycle that I had in stock. Wasn’t together yet. Went down stairs to grab the box so I could assemble it. To my surprise it was gone. Stolen by one of my employees. The mark up was not that much back then. That was the day that I decided I was done. Went into the financial services industry. I work less. Make more money. And have weekends off. It was a fun business. But times have changed. Kids are more interested in video games these days. I wish you the best. You definitely have to be a business warrior to be in the bicycle business. My favorite saying is how do you make a small fortune in the bicycle shop business? Start with a large one.
yes it is way harder right not to compete with sales and how many stores are opened around us plus online sales from manufacturer direct.... if we did not own the business or have a cushion from our store being so old then right now if we were to open a store right now I do not know how someone could turn a profit and be happy, it is a lot of work for little reward
Pro Bike Closet was always a ripoff! I have been reviewing their inventory for years.... and always found their stuff to be close to a retail price. I actually sent them an offer on a bike just a year ago and they never even responded.
I quit looking on there….they are too expensive!
they'll be happy to send you a $100 off coupon in return for your $2000 bike
It truly doesn't make any sense to try to sell such expensive products and expect people to buy them year in and year out. Even Claris bikes are creeping into the thousands, and I think that's really bizarre.
Agree. I bought top-end road new bikes when I turned 45, 50, 55, and now at age 63 took the plunge for a DeRosa 70th anniv Durace Di2. I ride all the bikes. Truthfully, how many bikes and how often does one need a new bike? I won’t be any faster on the newest steed, but it is a retirement gift from my late parents. If I am still riding into my 70s, next purchase will be an e-assist bike
the bicycle industry prays for another chyna virus
Honestly my Claris group set is still pretty good, still gets me up to the top of mountains. But yea, a Claris bicycle should only be around $400
In the UK, 10 to 15 years ago I would buy my bikes at 50% discount. Usually one or two year old models that dealers had not shifted. Still got my Six13 from 2005. Every year Giant was always clearing stock at least 30% off. Anyone seeing 15 to 20% off and thinking it's a bargain might be surprised at how things used to be. I don't know if margins are tighter these days, but I struggle to believe this with the mid to high end prices being what they are.
This is a world wide problem. Best top four Scott MTB‘s 10-15.000! These are bicycles! No one has any money. Rent, fuel, all monthly cost are 50-100 % or more than 4 years ago. Covid, millions of people bought bikes and most only buy a bike once every 10 years or so, the average person only care about the colour and the price. 65% of the Covid sales are sitting in people’s basements.. no longer being used. Virtually all new bikes here in Germany are no longer bought, they are leased, job bike or long term credit. Manufacturers whack the price up just like Scott 15,000 for their spark RC a bike which if you use two months and you try to sell it for 4500 the phone doesn’t even ring. We are all being conned st the end of the day.
Price of EVERYTHING is massively inflated. 10-15k bikes? Multi thousand dollar groupsets. Wheelsets, etc, etc.
I'm LOVING the used market today.
PS, half price is nothing. I want at least 80% off.
I've bought tons of kit and gear this year, 2700 dollars worth. But if I paid retail, that would be over 10k. Pricing is ridiculous
Are you getting 2nd hand kit or new at reduced rates and where?
Still find the second hand market to be overinflated
@@Jstroman221 brand new kit. Just open box
This sport has became just a luxury hobby. What I hate regarding myself is that I love it so much that I keep paying insane sums for being able to practice it.
It’s has to swing back to performance based light bikes, The enthusiasts spending 10,000 on a bike are going to die off in a few more years 🤣 then what ? In the states I see no push to get new people into cycling 🤷♂️
Why? Biking can be very inexpensive. Even bikes made say 20-25 years ago are still very capable. Also mid level modern bikes are excellent.
I paid 400 for two mechanical disc 105 shifters after my old broke. That’s insane. It’s double what I expected and I actually thought about quitting cycling and start running instead. Much cheaper. The bike I bought for 1800 in 2018 is now 3200! The bike that would actually be an upgrade from my current bike is 6000! I realize I would probably not be getting a new bike for at least the next five years.
I always replace with a compatible Microshift shifter. 1/3 the cost and feel better.
You legit have some of the best cycling content online. I use to work in the bike industry for years, it’s great getting your insider perspective on the industry even though I no longer work in the industry!
:) this means the world to me, I try my best, but sometimes life gets in the way, the store gets in the way, but I jus tlike talking bikes, I dont have the time or the equipment or the skil for film making like the other guys but i try to fill in everyone when I can
I haven't paid retail price for any bike product in years. Retail prices have been getting more and more expensive since I began cycling and I heard "yeah we don't carry that...we can order it for you" too many times that I just buy online for less and only visit the shops for occasional maintenance or the odd lube/co2 can/degreaser/etc. I hate that the shops get hurt the most in this price war...as a consumer, I can just go to Winspace/Seka/China and co when I want to buy new until pricing gets back to what we consider reasonable, but the shop loses out on $$ and I miss the shop talk and general bike shop experience.
THE ANSWER IS 100% GREED by the Bike industry nothing less you cannot say this its your livelihood your not a fool you know the truth i can buy top end motor cycles or scooters for less than a mid range racing bike my advice buy a good second hand there are hundreds for under $ 1500.
Okay hardtail bot.
Yes you are correct.
@@ESR66 nope.
I have found those who disagree with the facts either work in the industry or who's family work in this shameful industry .
@@daviddjerassi so you don't know how much it costs to make bikes. Got it.
also services should be a backbone of the stores, assuming you get the stuff to provided them. I remember buying Emonda SLR during covid, guy in the shop told me not to bother him since he is selling 20 merlins any week :) well funny how the situation changes
This was always going to happen , Mechanical options should have been kept available , Now electronic equipped bikes costs a fortune , Devalues hugely and parts hard to find , Di2 10 speed parts simply dont exist here in NZ , I work with computers and basically throw them away after 5 yrs , No different with bikes and most other commodities , Its a rich mans hobby/sport , So why not just buy a e-bike or like me a nice ktm 450 way cheaper than a new "bike" ..
GC, I can’t imagine during the first summer of Covid when bikes were flying out the door, that you didn’t ask yourself “how will this affect me when Covid is over and there is a glut of bikes on the market”. My first trip to my favorite shop I asked them that exact thing, and they said they don’t know but I did and told them, the over and above sales now will be taken back later in less sales when Covid is over. And since bike shops and companies decided they’d gouge us on price in the interim, well now it’s time everyone pays. I don’t really feel that bad about it, and stand ready to get some deals when the blood letting starts.
at least I can my bike shop never gouged, bikes were ebing sold at what our sellers told us too our profit margin never increased when the prices raised they stayed the same, so it was no help to us, me and my guys here at the store within the first year werte like this has to stop eventually this cant last forever and we ordered very smart after that, our store has been around for 40 years and we have a good team but we never gouged prices even for labor at that time, maybe turned away work because too busy but never charged too much..... we were always keen on seeing what happened if someone turned off the valve for the demand, and this is it. really it is the retailers who will take the hit the big name people will be fine,
Sorry to hear you’ve been struggling dude.. I hope that sales etc pick up for you love the channel 👍👍🚴🏻🥇 Pete
Much appreciated, we do alright, we expected times being slow but also this is business we wil figure out solutions and keep ti going
Too much inventory is one thing. Another thing is the explotion of variants. This is cost drivning. The bike industry has been to much focused on news and new stuff and too little on stuff that works and things that are compatible. Also, on the MTB side the development has gone much towards "high speed in a straight line" and riding in parks. Epscially the park-riding and focus on heavy bikes that most people need some sort of transport uphill for. This also drives cost for the customer. The MTB companies has tried to move their market from simplicity to complexity. And there is market there, but that marken is much more sensitive than the more classic simplicity oriented cyclists.
Now with higher interest rates, higher cost for almost everything, bikes for +5000$ is not the first thing people are looking for.
Edit: Now I have seen th whole video. There seems like the market is very different in different places. Here in my area, the most expencive stuff simply does not sale. Shops does not have them in stock any longer. What do sale is comunter bikes and relatively cheap MTBs. And e-bikes. E-bikes sales a lot. And people are using them too.
This industry have many problems.
1- companys like Gcn promoting a cycle way of life who the majority of the people now realize cannot afford anymore.
2-The global economy is going to a black hole and nobody talks about that, most people continue make a normal life because having afraid loose the life status to the neighbors.
3- this industry have many arm's...and have some arms continuing put a lot of many on the pockets, and offcourse...the money not growing on trees...for ones keeping the pockets full...anothers need close the doors of local shops.
...and so on...on my perspective only 2 things can save the industry, the change of mentality of all intervenients in this business, including the final consumers.❤
Hey, look at that! The picture I took and posted on Google is on your screen! Y’all helped me out in a pitch when I was down there training one winter. Keep up the great work. Kirk “Ironman” Corsello 😊
In my country, there are huge discounts. 20-25% off on the retail stores. Marketplace is full of second hand bikes. The retail stores are saying it’s a clearance sale. But no one is buying. Everyone is feeling the heavy inflation on the cost of living. So many people bought bikes during the pandemic, now they’re selling it. When the price of an entry level bike is the same with a motorcycle, it’s a hard sell.
A bike was one of the few ways you could unwind outside in lockdown during COVID for most people. So a 600 bike became reasonable enough for a good chunk of the population. (That and buying a dog in my country).
In hindsight, it was bloody obvious that when restaurants, night clubs, pubs and gyms reopened all this abnormal grow would stop. Isn't this economy 101 or am I wrong?
Must be the chip shortage for all the insane price hike on carbon road bikes. Right? Seriously I can’t buy most stock bikes cause they restrict stem/bar/crank sizing. Let along being stuck with one or two ugly color choices. Bike industry try really hard NOT taking my money.
some extra context is that Wiggle and Chain Reaction are based in the UK which left the European economic union and that has badly affected their export sales to to Europe
With the costs so high for a new bike. I'm still riding my 2010 TCR advanced SL. Has way more performance than i can ever use.
Bike price went stupidly high during cov19. All big brands took advantage of it. Road bikes should never be more expensive than a motorbike. It’s just carbon and we all know how cheap carbon is
That is a very interesting take on the market that most of us consumers don’t realize. I also believe a lot of people are just holding onto their old bikes and just replacing components as needed instead of buying a complete new bike. With these higher price points, I can see why it’s more of the higher end bikes that are selling.
That’s my situation. I had to replace my mechanical disc 105 shifters and it cost me 400! That’s double the price I expected. I was actually thinking about giving up cycling for running only because of cost.
I do feel bad for a lot of the mom and pop shops, but also can't help but feel slightly validated when everyone was jacking up prices like no tomorrow
Exactly I have zero sympathy for someone who got greedy during the rush of COVID, and just assumed things would stay that way lol. Eat the losses
I think wider macro trends play into this. For most people bicycles are a discretionary purchase, not a necessity. In a time of high inflation, discretionary purchases are put on hold. Maybe the answer is to sell bicycles that are not only for sport and recreation, but can do double duty as a daily commuter, such as offerings from Surly. In a high inflation economy, commuting by bike saves money, as bicycle commuters spend less on filling the tank. Bike commuters also tend to be fitter and healthier, which also saves money in the long run. On the other hand maybe the kind of bikes you are actually selling, namely the very high end ones, says something about wealth distribution these days?
Convergence of two things...
1. cost of living for everything from groceries to shelter. Costs more to live.
2. inflated cost of new bikes...especially higher end bikes and related parts.
When people feel the pinch, they are less prone to dispose with their savings towards 'elective' items like bicycles.
Take me. I can afford a few $10K bicycles. I would never spend that much money on a bicycle and I have been a performance cyclist for decades. I build my bikes from new and used components. In Florida, I don't need disc brakes or electric shifting...or a $6K frameset. But because of bike building skill, I am outside the typical buying demographic.
Name brand companies need to have a serious conversation about bicycles directed more toward the $2K price point. Only reason that pro cyclists race on $15K bicycles is because they are sponsored. Amateurs don't have to.
Exactly. A Moto GP race motorcycle may cost a million dollars, but a top of the line sport bike may be around $30k.
One issue is that young ppl don't have cars. This is a problem because they can't get to a bike race, even if it is across town. Of course for most ppl, they have to drive to ride MTB.
I use to buy high end MTB every 2-3 years and road bike every 5 years... After 25 years of competitive cycling, I am back to the beginning, not able to buy what I would like! That's crazy...
Bike industry jumped the shark when bicycles became as expensive as a proper motorcycle.
but they have always been that price
@@GCPerformance18 Maybe perhaps the majority of bicyclists/non-world class riders are realizing the gains to be had by purchasing a bike pushing 5 figures is negligible
$5500 for a frameset. Any wonder no one's buying😂
And that was a bargain deal? 😂
@@luiscolon921 A 5500$ frameset costs them under 500$ from Taiwan in wholesale. Just a casual 1100% margin. This shit has gotten insane and stores that did not prepare for reality to check in again deserve to get wiped out. Carbon bike frames have been cheap since atleast 10 years, even from the high end brands.
So you don't know how a bike and material are made. Got it.
@@kevinburke1325So you think $5,500 should be and is acceptable?
@@lastfm4477 Walmart breakable bikes are garbage cheap for a reason.
The prices have gone through the roof. The industry is facing a market correction. People are busy paying 50% and more for housing, food, cars, and other ESSENTIAL items.
Respectfully, none of this is "crazy." This is capitalism and the free market at work. That said, you seem like a very solid dude, and I hope you come through this and continue to make a living. Peace be with you.
of course and i understand this as well, thats why I am open to talk about it, there is nothing we can do but work hard and be smart.... all we can do is do- our best
I wish I could find some sort of discount on bikes! All stores in my area have limited inventory and prices at MSRP or higher. There are less than 20 road bikes even my size (58), much less bikes I would actually be interested in buying, in the entire Omaha/Lincoln metro area. I've been looking hard for a good time trial bike, but there is literally only one TT bike in stock anywhere, and it's a 2021 Felt model that is known for having very limited aftermarket upgrade options due to odd proprietary connections and interfaces of cockpit and frame. The Specialized dealer said that the Shiv TT bikes aren't even available for sale to the general public, only to factory sponsored athletes. Trek doesn't have a single Speed Concept in stock in my entire state, and only one in a too-small size within 5-6 hours drive time. Cervelo is about the same story as Trek. I'm really surprised that it's this hard to buy a bike these days!
Before covid I was looking to by a top end Specialized S7 road bike at $5800. During covid I couldn’t even buy one cause they were nowhere to be found and the price had jumped to $8500. At $5800 I thought the price was ridiculous, $8500 is insane for a bike!
Most people I know are spending their money on upgrading the bikes they already have as second hand bike prices are so poor at the moment. What was a great idea in lockdown has now ended up in the shed unused!. Most new cyclists loved riding on empty roads but now the traffic is back its another world. Die hard cyclists are tending to just upgrade wheels, carbon accessories just getting the weight down or for cosmetic reasons as prices for the above are competitive. Why spend 3/4 grand on a bike and still have to purchase carbon wheels etc?.
The problem is all these sales at 20% off are still higher than they were in 2019. Even if we didn’t have covid we wouldn’t have had this much inflation in this industry. Once you become greedy it eventually bites you in the ass. Bike shops will be forced to have big sales or shut the doors. People don’t want to pay these prices for bikes. Just like now all the realtors are still trying to tell everyone this is the time to buy. No the hell it ain’t. Every outdoor industry is still trying to convince everyone that this is the new normal. Well it seems like the consumer ain’t buying what everyone’s saying and selling. As for the used market. Some of these people still think they can get covid price. Those times are OVER in the used world. Wake up people! Even a S-Works for half price is too much. Every bike shop going to give me blue book price but these used people act like that doesn’t exist on their world..Interesting times ahead!! We got 6-8 riders in my group who would like to upgrade from high end aluminum with 105 to Carbon but at these prices were all like no thanks!!
This last summer was hot AF though. One of the hottest summers I can recall. My honest opinion on bikes is that the stuff from 2023 isn't so much better than the stuff from 2013. I built two bikes since I started riding 1 year ago, and the only thing I bought brand new was a brakeset. I did go to a rather high end bike shop for a fitting beforehand, but I noticed that their MO in addition to bike sales is to churn charity bike rides. You're expected to raise a at least $10 per mile to participate in anything. While it was a good experience, I'm not that clientele that can just plunk down a couple grand and then keep dropping a thousand bucks year after year.
Sorry to hear about your challenges! Appreciate the work on this and other videos.
I see two glaring factors:
- Massive inflation created during CV (~70% of the money supply printed)
- Bike companies over-reacted (and most outdoor companies) and ordered way too much based on new customers who couldn’t travel or do anything else.
Time to re-adjust and go back to normal customer base.
I also still find most bike prices are more expensive than people can handle now and are largely necessary to compensate for massive company overhead and growth models rather than healthy sustaining.
I bought a 2021 Forbidden Druid XT (with Fox 36 Performance Elite/DPX2) for $5200 until the recent relaunch of the new model, the same exact bike was ~$6700 earlier this year. That was 100% cost increase from shipping and inflation.
That said, I would not purchase the new model for $7200 because I’m not making more money and the dollar has been devalued. On top of that, I don’t think it’s worth $7200. So I will keep my bike working as long as I can or buy a “similar” bike for like $3-5K (YT, etc.). Just not feasible in this economy.
In Canada, the large sportswear company Louis Garneau (which owns other Canadian brands like Sugoi) also saw bankruptcy protection, sought private equity and had to significantly cut back their Canadian operations. The decline of European orders from large retailers was said to have set things off, but I think they over extended themselves when they acquired Sugoi.
Cannondale was sold by Canadian company Dorel a few years ago to Pons, a Dutch company that holds Focus and other brands. And of course, Mr. Colnago sold his majority share to the Emirati company owning the race team and the Colnago brand. There are too many bike shops and bike companies took a huge leap of faith in trying to establish the $10K bike as the norm for an enthusiast, while at the same time the direct-to-consumer Asian companies like Winspace entered the market, after doing contract manufacturing for the big brands. What is Factor going to do?
I am good friends with louis garneau he comes down here and rides and stops in the store from time to time. We always talk about the industry and how it is going, such a nice guy
@@GCPerformance18 That's great to hear! I know athletes who have raced on his sponsored teams and they all say the same thing about him: such a nice, human guy. I go out of my way to wear LG (even when has been difficult to find) because it is very well designed.
I have watched all your videos and think you should do one about the history of your family business. Independent shops are disappearing now, and it is very interesting to hear your industry insight from a retailer perspective. You are the only bicycle retailer that features stuff that they may not even sell (including direct-to consumer) and talks about how the market is going, from an honest perspective.
I wish the bike industry would figure out that not everyone wants disk brakes. 90% of my mountain bike troubles were with the brakes. I finally switched to cable-pull disks - it's better but that squeal is still annoying. Bring back rim brakes! I would love to upgrade my road bike but the selection of rim brake options is prohibitive and I REFUSE to buy a disk brake road bike.
Bikes are still simply way too expensive. Even people making high salaries aren’t buying anything unless they actually need it.
Ragarding Sigma-sports /Wiggle/Chain Reaction, don't underestimate the impact of Brexit. Before Brexit Wiggle was one of the e-commerce shops to go in EU , since then, no, too complicated taxes shipping time, send back, people avoid this. So they lost huge chunks of their business and just the UK market is much too small
Bike industry (the manufacturers) need to slash prices to get more consumers buying in order to reduce inventories. It's that simple.
At the store I work at its been a trickle, we sell Giant, Norco, Fit, Haro to name a few, I basicly saw this coming early on and have been trying to warn the store manager , but things have been insanely slow not only in sales, but in service too, giving me memories of the 2008 recession where i saw a similiar thing, of people just not having the discressionry dollars for a new bike, etc , let alone servicing their current bike
No sympathy for the big players (Specialized especially), road frame costs are absolutely ridiculous and there is ton of margin in those. There's no way the R&D, mold costs, other overhead and direct unit costs justify $5500USD for a 700g road frame, it's insanity. It sucks for the small shops and middle market guys who are on thin margins already having to deal with it, but screw the big players for those ridiculous frame costs.
Carbon frames cost about $200 from the factory, wholesale, on average. Don't ask for my proof.
@@charliedillon1400 that seems quite expensive, you sure it isn't less?
Too expensive and the quality isn't good enough top brands with wonky BB hole's is absolutely unacceptable.
When you're selling a simple cycle for the same price as a motorcycle,it needs to have something special, the problem is,the cycle industry doesn't listen to its customers.pressfit bbs, never worked,should have but the skill set of the engineers wasn't good enough.Disc brakes which add a ton of weight,which for 90% of us aren't needed, internal wiring,pain in the butt, could go on but that's the issue,who is listening to the cyclists?
Bike brands put certain models and SKUs on sale in the spring and they have been in perpetual sales pricing.
People have put a new bike purchase on pause and waiting for the prices to come down even more.
Judging by the many comments herein, I think it is obvious to many where industry has caused this......and no coincidence that you see much lower priced (and some decent) kit coming from China brands to exploit the lack of reasonable value priced product.....because the domestics abandoned their traditional lower to mid tier market segment customer in favor of ever increasing "spec" at ever increasing prices. Less volume, more exotic, more profit. Always happens (been in a similar industry in product management). but abandon the lower and middle tier, lower profit but greater volume, market segments at your own peril.
Still riding my latest build from 2017. May upgrade the wheels and brakes for next season but will probably keep riding it until it breaks. I think more and more people hold on to their older bikes rather than change them more frequently. We've reached a point of only marginal gains with every new bike/tech that is announced. There's no point in buying new bikes.
Was saving for a new trek last year to replace my giant anthem. When the LBS told me the cost, I genuinely laughed and went over to the motorcycle dealership. 6k I got a new KLX and bought all the gear and still spent less than the Trek Slash. Found a used Beta 250 trials motorcycle for 1k including a rack. I'm still under what Trek wanted for that Slash. Cycling my entire life and cycling prices literally made the choice to switch to moto. for me.
The market is bound to crash when bicycles start getting as expensive as cars. The demand raised for a bit and manufacturers took advantage by raising prices as high as they can get away with. Now times are a lot harder financially and people don’t have the money to spend on a new bike that cost more than a used car.
We have been going good this year and it will be my shop's best year ever. Things have fallen off fairly hard in September and October though. Still happy for best year ever!
The pandemic stimulus windfall gave many lower income consumers a false sense of affluence and they spent accordingly. Fast forward to the present, those funds are long gone and inflation is crippling their purchasing power. Bare necessities for survival have supplanted boutique bicycle trinkets.
Bicycles are too expensive at every level. There is no reason for a bike to cost $8000, even pro-level. Also it appears that the manufactures are eating their young.
they have always been this pricy I just think cost of living and inlfaiton right now are super high but back in 2012 there were 12,000 bikes and also 8000 bikes
@@GCPerformance18 I have a custom Serotta CSI I bought in 2000 for about 2200 now to replace it the cost would be about 18k how is that even possible
This is so interesting. I've been looking for a new bike for a few months and most the shops have been telling me that getting any inventory right now is crazy difficult. Basically they have stock, and if the size doesnt fit you you're SOL.
I wonder if there's some distributor related fuckery that's causing all this.
really?? so a lot of the brands I know are in stock, the only one that is very hard to find right now is the specialized tarmac sl8, but even that is starting to come in, I know of tons of stores who have stuff in strock now this is isnt every single store there can be isolated inceidenets that maybe the stores your going to dont have the alot of options
the guy who owns my local bike shop said 2020 was the best year ever for every bike store in the US…so everyone who wanted a bike got one
this was the truth, plus no one could go anywhere and they had this free money
Pure greed, I bought an Orbea Gain e-bike in June( Spain), and a €500 battery extender. Total price €5250+. I tried to buy a Specialized creo, but there wasn't one in the whole of Spain. I was told I couldn't order one according to Specialized. They are keeping the stock low and that in turn keeps the prices high. P.s. Last July I bought a new Honda pcx 125 scooter for €3500. You just couldn't make it up.
Same for many small retail businesses. Clothing, jewelry etc
54% of inflation is due to corporate profits/price gouging. They hide behind inflation to get away with it. Now they keep the prices high and people don't have the disposable income. I would have purchased a new bike by now but NO WAY. Too expensive. They should have lowered prices earlier. Anyway, good luck to you GC.
There is a simple solution for that , prices drop by 50% for all lvl of bikes , then on top of that do 20-30% discount ,even that they will have huge profit anyway as 99% of come from China . End of the day everyone will be happy
The prices have been sky high for too long. A decent mid range bike these days is the best part of 3.5k. Thats what mine cost!
The industry has gone mad. Big brands want £6-7k for a mid range bike comprising of a 2nd tier Carbon Frame and Ultegra groupo. For £3.5 the big brands will sell you what is now termed an "entry level" bike comprising of a 3rd tier Carbon Frame and 105 groupo!
I believe that Wiggle/Chain Reaction used to sell a lot of OEM stuff, i.e. parts that were supposed to go on bikes for retail sale. The parts would often come in plain packaging or in a box with Chain Reaction's name rather than a Shimano's box. There were also "grey imports", but all this stopped during covid because parts were in short supply and bike brands needed everything they could get. Ever since then, Wiggle/Chain Reaction seem to have had problems. The phenomenon of supply-chain shortages leading to an over-reaction is sometimes referred to as a "bull-whip" effect because a small disturbance at the start of the supply chain results in a big disturbance at the final end, i.e. the retail shops. Another problem is that high-risk strategies give high rewards in good times but high losses in bad times: cutting back because bad times might be coming could mean you lose out. Perhaps more fundamentally, the industry is selling non-essential items, often of ludicrous value, and has thrived on people buying something new rather than looking after what they have. In which alternative universe does it make sense for a push bike to cost $12,000? Many of these bikes are made, or partly made, in China, where the average wage is around $12,000 per year. It is sad for those affected, but industry sectors that rely on peoples disposable income are likely to be subject to these kinds of problems.
Cool addition with the greenscreen! Some tips: lighting is the most important to make it look good. Try to light the screen without lighting yourself; this will reduce shadows. Also more of a preference but many people have the camera at the bottom of the video that way the cutoff isn't as drastic.
Fantastic insider info, thanks for these insights, and I note that you called it ages ago. Sorry to hear its rough times, you would be my guy if I was in florida. Interesting insight on fire sale of SRAM parts, what's shimano saying? I remember that shimano parts were like gold dust in pandemic and they simply would not invest in manufacturing for precisely this reason, they got burned expanding capacity a few years back and did not want to repeat, but what about now? Shimano parts holding their value? Freaky to see your head and shoulders floating all over the place, need to up your green screen game to match your ASMR game son! 😂
The southwest is somewhat insulated from this, but discounted sales are driving a lot - a lot of us in the industry saw the writing on the wall when the bike boom hit - namely that the levels would persist for 2, mayyybe 3 years but then there would be a drastic shrink.
The writing is on the wall, those with the stomach and financial resources will make it through the coming months but this winter will be a bigger struggle. For the brick and mortar shops that have no online presence, I urge you to get on the e-commerce train as that is outpacing retail by 2-3 times in mo they revenue (for properly set up operations).
Dark times ahead there is no sugar coating this, but good time for savvy consumers or investors
What did the industry expect with 15 and 20 thousand dollar bikes!!! Are you serious? Bikes cost more tham motor cycles now how crazy is that? Oh lets just raise the price these suckers will pay for it. I don't think so! This is crazy!!!
#1 all road cycling content on YT 100%
:))) thanks so much my guy!!!
Drop the prices by 80 percent
I’d take 50 too.
Neither are going to happen. Buy used abs take your chances.
Man, people saying drop the prices by 80% are truly ignorant about how bikes are made.
Exactly it's almost like these "business" folks never heard about supply and demand
@@kevinburke1325nope they're just saying it's a legit market opportunity to take market share. You could loss lead your way into dominating the whole industry if you have the pockets. Legit strategy
Bicycle shops don't want to do service anymore. I used to love watching the service guy at the local shop, he was good, could fix anything in record time, those days are over. You're on your own, you have to do everything yourself now.
$400 cassettes.....are you listening Sram?
Don't forget Chinese brands really stepping up their game as well as components sold overseas. I managed to get Ultegra components from Taiwan for cheaper than any western seller, only sacrificing warranty and some shipping time.
yes this is true, I have seen so many china bikes recently enter my store or just on local group rides now too
Absolutely, a few models of even box store bikes have come a long way. some made in Taiwan. These are selling for just under $400.00 with decent componets. Very attractive to beginners. They can't seem to keep them in stock. With all this said, the bust isn't just in Bikes. I work in manufacturing and this year has been dismal across the board. The cheap money has dried up and high interest rates do not help anyone.
Where I live, people are still asking way too much for used bikes and equipment. Then they wonder why there is no interest.
That is what happens when companies get greedy. 😂
The used market up here (Toronto) is packed with good stuff at really cheap prices. I just bought a bike for $200 with brand new conti tires, medium range groupset and saddle that, on its own, would cost almost that to purchase new. Yeah, some people must have the latest S-Works and they will continue to buy new....but anyone else can probably save 80% by going used.
Stuff is just too expensive, and cycle stuff is just crazy. They have been on the death spiral for too long, selling to an ever smaller cohort who have the cash to spend. They have forgotten the normal cyclist, I only replace stuff when it is worn out , including a bike (perhaps once every 4 years ish). I do not have the money to spend thousands on a bike or hundreds for a pair of bib shorts made in the far east!! They need to get real.