The incoming guy ran his whole campaign saying prices are too high SO vote for me, I'll fix it. If now prices go even higher, my head will explode. Also- I'm new to your channel- Nice looking shop! 😊
@@gograva I've been in the cycling industry for over 35 years and still have little idea how the tariffs affect it. I'm sure they are different every time, but they have a direct effect on customer behavior, and your sales reps use it to leverage more purchasing in their shops. Good, bad, or otherwise, I know that with our current market, it does not come at a great time, and I feel it will hit the brands harder than your local shops. That is totally up in the air. But at the end of the day, used bikes and parts will be the drive with service to your local shops since high-end bikes have dropped and eBikes will soften, not in all markets, but in most.
The small details you missed is that taiwan makes everything high end. Taiwan is not china. The tarrifs I understand will gonto specfici sectors and not everythinf
This is a great video with great insights and great info. Your chain-remnant Christmas ornaments after adorable! This video is why America is great. Thank you.
I'm just happy I'm in a position where I don't have to buy anything but clothing and occasionally tubes and tires for the next 10 maybe 15 years. I feed my OCD with bike related stuff in the past and I have plenty of spare parts which I'm glad I neglected to sell on ebay. It looks like this stuff may be useful one day. I have two custom US made frames so no need for a new bike the rest of my life. For the sake of the younger generations to come I hope the bike industry can get it's act together and the greed stops once these companies get taught their lessons.
I think the big issue for the Bike Industry and the tariffs is that the bike industry isn't sufficiently large or expensive to justify operational setup in the US. An auto maker deals in much larger quantities and finished goods costs would be much harder impacted. Example: entry level bike fully manufactured in china/taiwan ~$500, 25% tariff brings that bike to $625 cost for a bike shop and after markup it goes from a $1,000 bike to a $1,250 bike. Yes it hurts the customer but $250 isn't really a huge cost in the scheme of things and the bike shop actually made an additional $125 in this simplistic example. Auto manufacturer: cost from Asia $15,000 with MSRP $25,000; assume same tariff for example (25%) and cost to dealership becomes $18,750 but MSRP would go up to either $31,250 (keeping markup at 2/3s) or $28,750 (keeping flat $10,000). Cost to customer and incentive to onshore to US is substantially more impactful in higher cost of goods markets. I expect we will just see bike prices absorb the tariff because the volume and cost savings isn't there for the bike manufacturers.
Very good points. I didn't think about the cost structure compared to the overall cost. It might be different for e-bikes since Lithium batteries are hit with a 100% tariff right now, but I'm just guessing on the outcomes.
The bigger issue is the CCP is financing their reachable goal of global conquest with our addiction to bargains. Our default demise could be averted by the will and character of each of us to resist purchasing from China no matter the sacrifice. I'd rather have a country than a bargain.
Stop drinking kool-aid and get serious if you want a country. China is just doing business and elevating its people out of poverty. The US should do the same instead electing corrupt morons and blaming China and the rest of the world. 'Resist purchasing from China', LOL.
Why did you remove my comment? Afraid of free speech? All I said was that the US, instead of conquering other nations, should consider elevating and providing jobs for its people like China does.
Came here from Russ's channel, this is a super interesting deep dive into the logistics of buying bikes today!
Glad you enjoyed it! Thanks for stopping by.
Good luck to you and your business!
Thank you!
The incoming guy ran his whole campaign saying prices are too high SO vote for me, I'll fix it. If now prices go even higher, my head will explode.
Also- I'm new to your channel- Nice looking shop! 😊
Great insights!
Thanks Justin
@@gograva I've been in the cycling industry for over 35 years and still have little idea how the tariffs affect it. I'm sure they are different every time, but they have a direct effect on customer behavior, and your sales reps use it to leverage more purchasing in their shops. Good, bad, or otherwise, I know that with our current market, it does not come at a great time, and I feel it will hit the brands harder than your local shops. That is totally up in the air. But at the end of the day, used bikes and parts will be the drive with service to your local shops since high-end bikes have dropped and eBikes will soften, not in all markets, but in most.
The small details you missed is that taiwan makes everything high end. Taiwan is not china. The tarrifs I understand will gonto specfici sectors and not everythinf
This is a great video with great insights and great info. Your chain-remnant Christmas ornaments after adorable!
This video is why America is great. Thank you.
I'm just happy I'm in a position where I don't have to buy anything but clothing and occasionally tubes and tires for the next 10 maybe 15 years. I feed my OCD with bike related stuff in the past and I have plenty of spare parts which I'm glad I neglected to sell on ebay. It looks like this stuff may be useful one day. I have two custom US made frames so no need for a new bike the rest of my life. For the sake of the younger generations to come I hope the bike industry can get it's act together and the greed stops once these companies get taught their lessons.
I hope we can build a better future for cycling.
I think the big issue for the Bike Industry and the tariffs is that the bike industry isn't sufficiently large or expensive to justify operational setup in the US. An auto maker deals in much larger quantities and finished goods costs would be much harder impacted. Example: entry level bike fully manufactured in china/taiwan ~$500, 25% tariff brings that bike to $625 cost for a bike shop and after markup it goes from a $1,000 bike to a $1,250 bike. Yes it hurts the customer but $250 isn't really a huge cost in the scheme of things and the bike shop actually made an additional $125 in this simplistic example. Auto manufacturer: cost from Asia $15,000 with MSRP $25,000; assume same tariff for example (25%) and cost to dealership becomes $18,750 but MSRP would go up to either $31,250 (keeping markup at 2/3s) or $28,750 (keeping flat $10,000). Cost to customer and incentive to onshore to US is substantially more impactful in higher cost of goods markets. I expect we will just see bike prices absorb the tariff because the volume and cost savings isn't there for the bike manufacturers.
Very good points. I didn't think about the cost structure compared to the overall cost. It might be different for e-bikes since Lithium batteries are hit with a 100% tariff right now, but I'm just guessing on the outcomes.
The bigger issue is the CCP is financing their reachable goal of global conquest with our addiction to bargains. Our default demise could be averted by the will and character of each of us to resist purchasing from China no matter the sacrifice. I'd rather have a country than a bargain.
Stop drinking kool-aid and get serious if you want a country. China is just doing business and elevating its people out of poverty. The US should do the same instead electing corrupt morons and blaming China and the rest of the world. 'Resist purchasing from China', LOL.
I've been making an extra effort to buy "USA MADE" products if possible, even if it costs more.
Why did you remove my comment? Afraid of free speech? All I said was that the US, instead of conquering other nations, should consider elevating and providing jobs for its people like China does.