Breaking News! That's It For Trek Bikes? Or Other Bicycle Brands? The State of the Cycling Industry
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- เผยแพร่เมื่อ 22 ก.ย. 2024
- Is this it for Trek Bicycles? Update Breaking News (It’s Not Good):
• That's It For Trek Bik...
As The Wheel Turns, So Do The Days of Our Rides. This series is my reflection on current events in the industry and consumer perspective. With my 30 years in the business, I try to give a better understanding and some added context to today's topics. Let's have a look.
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Here's a breakdown of the news about Trek Bicycle:
Summary:
✅ Trek Bicycle, a major bike manufacturer and retailer, is facing challenges due to slow sales and high inventory levels.
✅ To address these issues, they've announced a company-wide effort to "right size" their operations.
✅ This will involve a 10% reduction in spending across various areas.
✅ The exact details of the cuts haven't been announced yet, but they are expected to be revealed soon.
✅ Despite the restructuring, Trek maintains that its overall strategy remains unchanged.
Possible reasons for Trek's situation:
✅ The global bike market might be experiencing a slowdown after a surge in demand during the pandemic.
✅ High inventory levels could indicate they overestimated demand for certain models or sizes.
Possible impacts of the cuts:
✅ There could be layoffs or reductions in employee hours.
✅ Certain departments or projects might face budget cuts.
✅ Marketing or advertising spending could be reduced.
Overall, Trek's goal is to become a leaner and more efficient company to navigate the current market conditions.
Here are some additional thoughts and questions that might be relevant:
✅ How will these cuts affect Trek's customer service or product development?
✅ Will Trek prioritize online sales or brick-and-mortar stores?
✅ Are there any opportunities for growth despite the current challenges?
It will be interesting to see how Trek navigates this situation and what the long-term impact will be on the company.
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My passion for bikes started when my parents opened a shop in the 1980s called Parker Bikes (we were located in Parker, Colorado). My love for cycling has continued since then, in my work and with my hobbies of road cycling and mountain biking. After my parents’ shop closed, I worked for other bike shops (including Lee’s Cyclery in Fort Collins), where I built and sold bikes, fixed and tuned up bikes, and managed inventory.
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I wonder if it's because ppl want e-bikes but now e-anything isn't selling from what I'm seeing too
you can't price bicycles higher than motorcycles and expect to keep selling bicycles....
Exactly
As a former motorcycler that bought my street bike for about 8 grand, it seems insane to me that you get far less ebike for your dollars than if you put it toward a motorcycle that can rip over 200km.
Oh my word you are so right!
Most are subscale businesses and have no choice. Hence, consolidation will help more companies achieve some level of scale economies
I say that all the time. The bicycle prices are stupid high
I hate to sound like an oldhead, but you can see the bike industry begin its inevitable plummet when the big companies stopped selling beginner road bikes for under 800. You ain't luring any newbies to the sport with a starting price of $2,000, they'll just get a used bike.
The other thing is that the people that may have been looking into cycling will simply choose a different activity all together is the bar is raised too high for entry.
This is true. Even the used bike market is ticking upward.
Completely agree with this, old head comment or not, truth is truth! When you start looking at spending $2k on bikes it also opens the door for people to consider E-bikes.
I saw a youtube vid, maybe by GCN? It looked at the entry level road bikes of the big manufacturers. The conclusion, these were not really entry level bikes but mid level; forcing up the price.
Part of the problem is always going to be bragging rights over who has the best, fastest, latest tech on their bikes. This applies to manufacturers, guys down the club, and even dads polishing their machine in the front yard competing with neighbors.
Either your into bikes or not, the price is irrelevant. Most people are more into their phones and PlayStation’s than anything else.
I used to buy a new bikes every 2 to 3 years to upgrade. In the past 5 years, i have been buying used because the prices are completely outrageous, pure greed. If they lowered prices, they could sell more bikes.
I’m not finding any of these “sales” being much of a sale. $2000 off a $10K bike is still a ridiculous price.
Support the small, independent bike shops that stock more than one brand, like the ones from your childhood…if you can find one!
My first bike was a red huffy in 1986.
Don't waste your time in poplar bluff mo. . Unless you got 4grand to drop, love to hear how great socialism is and enjoy the smell of 5 cats pissing on everything he won't give you the time of day😅
Bike prices are now back down to ridiculously expensive, instead of outrageously expensive.
Ha ha. 😃
Ya mean the $10k bikes are not selling?
Actually it's the high end holding up.
Rich always win..
@jenmac287 can't take it with you when you die all alone with no friends
@@garybird8646Yes, the rich are just getting richer. The guy with the new Ferrari wants a Speed Concept too, even though he can’t ride.
Yeah...😂
Greed…it’s ironic to see companies that demand so much from shops, offer so little to the consumer, but couldn’t see the inevitable failures lurking. Biking has been my saving Grace mentally and physically. It can offer so much to people. It’s a shame that GREED will be its downfall and biggest detractor moving forward. Sad for the loss of jobs. Thankful for the humble pie served
The bicycle industry and cycling community is its own worst enemy.
Totally agree. I ride a Giant Revolt 1 2022 and its a really good gravel bike. However, when I ride with "veterans" you can guess the amount of dirty looks I get for riding plebeian aluminium. To many "hardcore" cyclists, you ain't shit until you have the most expensive thing on the market. Its the majority of cyclists themselves that create the need for $15k bikes.
@@carlsberg-gs6rlAlmost no one is buying those $15k bikes, they’re sold in extremely limited quantities. They’re a halo product to sell you a much cheaper product that has some of the same mystique. You shouldn’t worry about what people think or say, if you’re stronger they can’t say ish and you can rib them about being fat and slow on a motorcycle priced bicycle.
The bike industry needs to figure out how to get more average riders buying bikes. The feeling of community will sell itself and thus everybody wins.
Good water cooler INTEL... I currently work in a big box retailer (Dicks Sporting Goods) as a bike mechanic we get our bikes from PON Holdings ( GT, Schwinn, Mongoose, and Pacific Cycles) and sometime later this year we will be selling Cannondale and Giant at our higher tier Public Lands and Moose Jaw stores. We're also the US distributor of Nishiki bikes. I'm looking forward to seeing how this all shakes out once the dust settles.
If they really have 5 years of inventory,10% cuts aren't going to be anywhere near enough. Triple that.
That's 5 years at this Depression level spending.
@@GNMi79a lot of people would agree with you. I own a business, not cycling but every year I look at what’s sitting in my shop that needs to go and put the blowout price on it!
KONA tried a "buy one, get one free" online for one of their MTBs. Desperate.
Trek, like other bicycle manufacturers, are experiencing the pandemic bike craze pendulum swinging back the other way toward eventually achieving supply and demand equilibrium. The SKU reduction is needed. I still have an old 1995 Trek catalog and even back then they had a plethora models and a bunch of accessories.
As soon as I learned about "gravel bikes" I had my suspicions... Either it's a road bike with mountain bike tires or a mountain bike with road bike handlebars? Just keep making the chains lighter, weaker and unreliable - that'll sell more bikes...
That was a sad day when Schwinn fell. Would have been better if they went away altogether rather than turn into Huffy.
My first legit mt bike was a Schwinn Mesa I bought with my hs grad money in 1997. My cousin raced for them, my fav small shop in Spokane WA carried them. Home Grown no more.
I'm the manager of a well known high end mattress store. We're experiencing the same thing. During COVID we saw a 175% increase in business. Our company told investors that the major increase in sales was due to consumers realizing the importance of good quality sleep. They kept projecting, year over year sustained and even increased growth. Complete opposite happen. Business tanked! During COVID stock went from in the upper $40's to almost $150 a share. It's now less than $11. During this time they kept raising prices to offset their loss in gross profit which caused them to also lose market share. They keep restructuring, making cuts. So far none of it has been a enough.
Thanks for sharing.
I think you are right when you say most people want a bike for under $1000 that they can get on and ride. I bought a full touring bike, racks front and rear, 30 speed Shimano, for around $1000. The weakest link on the bike, performance wise and in every other respect is me.
However, Trek does have its uses in the propaganda department. My wife was complaining because I spent $30 on a bit of bike gear. When we were out shopping later I steered us into the Trek shop, and showed her a 10L bikepacking bag for $100 and bikes up to $15K. So Trek still has its uses for me.
There are plenty of bikes between &600 & $1200 that are more than enough bike for a beginner.
@@ronb9901 Yep, but you won't find them in Trek stores.
That sounds like the Only use most of us have for the "Trek" stores. We lost a long time independent local chain of multi-brand mid-high end bike stores when they became trek only. Sad.
🤣🤣🤣
I picked up a "new in box" road bike with a hydroformed aluminium bike for $250.
Great frame with top notch welds but absolute crap components.
I'm looking at $250 to replace everything with quality parts.
$500 and a bit of DIY for a quality bike or something comparable from a manufacturer that would set me back over $2k... 🤔
Regarding the 40% SKU reduction… have you seen how many variations they have on any model of bikes? I was looking at Fuel EX’s recently, and I think there were 22 options. Why do they need more than 4 builds for the carbon frame and 4 more for the AL frame? And they have 4 other FS models I think. Too much.
I'd argue 2-3 per model and frame type. Cheap as possible Alu, Value build Alu, Value Build Carbon, Top end Carbon. Then maybe a limited/named/partner build. And stop with so many colors. Either just one colorway per spec level; Or one colorway and one simple black per spec level. Change/Rotate the colors every 6 months to 1 year.
Y’all are forgetting to multiply by the 7 sizes each build comes in lmao
I work part time in a Trek store and trying to explain the differences on a given model to a customer is difficult sometimes. Just confuses the customer who just wants a good bike to ride.
There's also too much crossover of models; Alloy hardtail bikes; Roscoe, Marlin, X-Caliber, the new alloy Procaliber. Do they really need all of them?
They’ve been screwing the independent bike shops for years.
Interesting to see how this will all play out.
I feel bad for the small businesses, but not the big corporate heads.
Bike industry: we are hurting
Norco and pivot: here’s our new way overpriced bikes
Every big brand bike... new TOTL Bianchi is CDN$25,000 - are you kidding me??
@@johnandrews3568 what….😳
Let's price ebikes with NO battery and then let them eat the sticker shock of how much the batteries cost. smh
@@norcal9376 and what about replacing the battery? I bet that’s expensive and if the motor goes out you’re screwed. I think e-bikes are still not even close to where they should be.
@@mikegeddie2263 yep, top range Bianchi with Super Record is $25K
Like the auto industry they screwed us during COVID jacked up prices supply and demand now they are paying the price! You don't need all the models of every riding type. You used to buy a frame or model then upgrade to what you wanted or could afford now you got to many bikes to choose from.
America. Capitalism. Gotta love it.
Trek can charge whatever they want. They own the product. It’s theirs. You can setup a lemonade stand, sell a cup for 50 bucks. See how long you stay in business. Trek, if they’re charging what they are, and still afloat - they’re right.
If they’re charging high and nobody buys - then it’ll show. They’ll go out of business.
That’s the beauty of America.
The warranty/guarantee issue could become very painful for many of us still making fun about the downfall of these tumbling bike companies. Honestly, I hope they survive. 🙇🏻♂️
I worked with a small atelier in France. We built frames for pro teams like, Festina, Cofidis, Jean deLatour and others. Riders like Brochard, Virenque, Millar, Fignon, Longo, Vandenbrouke, etc. I offered exactly the same frames to US bike riders at very low prices, $800 to 1,500 for frame and fork. It was very difficult because riders wanted the big name brands. I tried to explain that the name brands the pros used were usually not built by those brands. They were built by small custom frame shops like ours. Still no sale. In a way, US customers got what they deserved. High prices, low quality and frames the pros didn't actually ride on.
What is your web site?
So you're saying you can provide me top of the line frame/fork and with all other top of the line components I should be able to have a $7 to $8k bike for $3.5k or so?
@cmoredebris just because someone has money in their pockets doesn't make them smart. Some consumers are just plain idiots. Give me the small well-made brand in a heartbeat.
@@jameslakatos8506 Retired in 2001.
@@mxmike123 A $1500 frame and fork in 2001 would be $2600 today. I did not sell complete bikes. The frames were not inexpensive, but the point was the client received a made to measure frame, made by the same artisans who built for pro riders. That was added value the customer got for free, plus the years of fitting experience that went into each sale.
Bikes are like sport shoes. Every sport has its own set of shoes. The same thing has happened in bikes. racing bikes, road bikes, gravel bikes, mountain bikes, electric bikes, fat tire bikes, touring bikes. Your garage is only so big.
I know that there are some shops offering discounts, but new riders don't want to drop $2000. Amazon is the route many of them will go.
I’m in the bike industry and I can attest to how rough things were a year ago. They will get rougher this year I’m sure. I personally I’m not looking to get any new bikes for myself anytime soon.
What he doesn't say is that many of the independent bike shop owners are burned out after the bike boom and are now looking for an exit. Many want to retire. They no longer have prospective buyers lining up at their door, so selling to one of their bike vendors becomes an EXIT STRATEGY. Most of the company owned stores were an independent bike shop at one time. You can't blame the bike brands for wanting to protect and continue to grow their market share in those markets. That's not lack of support of the independent, that's giving them an exit to do whatever else they want.
Furthermore, Trek does it's best to have an annual review event with their independent retailers to make sure they have a solid business plan and marketing plan for the upcoming season. They do this at no cost to the retailer. Imagine the thousands of dollars that would cost to have a Consultant do that! Trek does it because they believe it's the right thing to do for their retailers. Strong retailers = strong Trek. No other bike brands supports their retailers like that and does it for free.
Trek bikes are insanely overpriced. There is no "free" - the customer pays for it all.
@@just4ivaylo92yep, everything is always built into the price.
Yes, we lost 4 independent bike shops due to retirements, then we lost a local independent multi brand mid-high end chain to trek. Sad.
There was a mass exodus, and Trek and Specialized bought those shops; now, I'm sure they are not buying anything until they get their numbers back into the black.
The bikes are manufactured over sea and assembled (if your lucky) here in the usa. I'm struggling to understand where all the costs are coming from? Because it sure feels like greed at every step is active and alive. It's not like there are 6000 employees in the usa making trek bikes. Wtf? Is it the engineer who drew the pic? It's not the tv advertising (when has anyone seen a bicycle commercial since landrider?). The bikes are stupid expensive and I'm struggling to figuring out why? It's nuts. Nobody is lining up to spend 10k on a bicycle. If so it's a short line. When u realize they are all made in China and Asia It's nuts how they justify the costs.
The consumer is the price maker.
The seller is the price taker.
Basic Business Administration and Economics. I studied both.
Example: If we don't like the price, we can always walk away.
This causes the company to make radical changes in price.
Otherwise, they have to work doubly hard to attract new customers.. Customer acquisition cost. Expensive $.
If any business treats their existing customers well. It is called customer retention cost and it is much less expensive to the seller.
We are also the stakeholders and we are the ones with that power.
Super rich goo-legged wannabes drag the price up. Commuters and racers can't afford this garbage.
Believe we need to go back to simple and affordable. I only ride old single speeds to rebel against the billion standards and wild pricing.
yeah they're all trying to create the most affordable $5000 dollar bike! lol
i dont really see crazy deals so much, more like, prices are back down to what id consider normal, or at least pre covid prices. theyre gonna have to slash prices much lower to move out the old stuff. its still not low enough for me to bike a bike i dont really need... cost of living these days is up.
I have been buying online lately and really good prices. I got a niner rlt rdo 38% off along with a santa cruz jackal at 40% off. Also purchased a pair of sidi tiger 2's at 50% off.
Took me a minute to realize this wasn't Bike Farmer. 😂 Interesting vid.
He has a great channel as well. Also has a option piece on this topic as well. Worth taking a look. th-cam.com/video/O1X2D8THzbg/w-d-xo.htmlsi=OKOWaoxekbkYGzne
I’ e ridden road bikes over 40 years. Technology applied to bicycles has exploded and so has pricing. The industry pushes electronic shifting further down the rungs each year and will mechanical shifting survive. And you can’t ride with a 9 speed or 10 now or 11. Hype has pushed prices far beyond reasonability. It is easy to spend $ 10,000 on a bicycle when I bought my first car at $ 3000. And buyers aren’t cat 1 racers, they are receafional cyclists who were conned into buying well above their skill level. Now that money is bitten by inflation, buyers aren’t lining up for two wheel Ferrari’s. Cycling is a pleasure. Having to take a loan to pay for the ride diminishes the reward
My local shop here in Golden Colorado has GT force E bikes on sale. An incredible value $2473 OTD. Normally they’re $5200 OTD.
I am riding 2000 Specialized Road bike and still satisfying.Not everyone wants the latest the greatest specially electronic shifting that really wasn't needed for most riders.
I'd love to buy a bike at these discounted prices. But considering due to ecomic reasons at my company my salary hasn't increased since 2020. Inflation on everything else has effectively decreased my pay by 15-20%. I know the higher level economic numbers are better, but on a personal level buying a new bike right now ust doesn't make sense. Other friends I have are in the same situation, of having little to no wage growth while everyday expenses have increased.
Everyone else is making much more since 2020..you just dont want more and blaming others for your lack of motivation to earn more is your personal problem. Im able to afford more bike with my extra money than ever before!!
Bummer. Hope your employer makes the logical step of stepping up wages. The job market is pretty hot and it's hard to find good talent - good luck!
Best way to get a significant raise is to switch jobs. Might be worth considering…
I know a lot of people that bought Walmart bikes and were unhappy with them. They never got "into" cycling when people told them they needed to spend $1K or more on a good bike. They found other hobbies. An "entry level" bike shouldn't cost over a grand.
Bike companies should push hard for better bike infrastructure. Create the demand for bikes!
@@GNMi79Been riding for over half a century since I was a kid and now I mostly ride on Greenways because I don't want to get run over by a distracted driver on the street.
Seems like companies put out good stuff for about 10 or 20 years. Then the guys who started the business retire or die off. After that the corporate types, i.e. the Bean Counters are left. The Bean Counters are not innovators. The Bean Counters are financial guys. They don't care about the product. It could be bicycles. It could be sweat socks. It's all the same to them. It's just numbers. When companies get to the Bean counter stage, they seem to either go belly up or become absorbed. Sometimes everyone is laid off and the name is picked up by a budget manufacturer. I expect some Taiwan company will buy the Trek name. Operations in US will largely be closed down. But,......this is just another BS comment.
The biggest example I give people about business, is that Sears and wards are no longer around. Anyone can go out of business
I just bought a bike from a smaller mfr. that was $3000 less than a comparably equipped Trek Domane. There's no way a giant company like Trek with their huge volume should be more expensive than anybody.
I am very happy about this, I just bought my first full suspension mountain bike. Why, I bought a Rail 9.8, that was just over $3,000 off. And many companies are going thought this, its a Covid rebound (I am a massive gamer too, same thing is happening in the gaming industry). Take advantage of their situation.
Back when I paid 700 for a new trek mountain bike ,I was working in an Oil Refinery making pretty decent money.back in 1995 we were making 17 to 18 dollars an hour,then wages stagnated 2024 lots of people 20an hour.now nice trek bike 2000 an up ,it's simple people had more spendable income in the 1980s and 90s.
My local bike store I found out always went in and bought the year end “end of run” more lower priced Treks then kept in back and brought out through the year. They also had a few higher end ones to make you drool…I lost interest in Trek way back when they crushed Klein and Fisher. Eat your competition basically… and then didn’t manufacture in US anymore. My local store doesn’t stock enough goodies to come in and browse anymore… just a few things and all e-bikes . So I buy used 90’s Cannondales now.. made in USA … great stuff !! Trek is just Schwinn to me now….
You forget about Lemond. On top of it I don't like that they were suing Lance Armstrong. I don't agree with his practices but he made up Trek in terms of road cycling...
I wouldn't be too concerned about Trek - they'll find their proper level again, don't think they're going anywhere. They'll figure it out in time and they have the money to ride it out
Online retailers are the winners and theyre not suffering, their prices are still the best deal as theyve always been consistent in their pricing and not cutting crazy deals for months on end like the big box brands!!
canyon way ahead of the field
Last summer in 2023 I bought an older used 26 inch Trek bike at a garage sell for $5 and just repainted it and rebuilt it with new bike parts and stuck a rear ebike kit on it. Now it’s a sweet ride! 🙂
I have a Trek Domane & Marlin .I'm interested in a hybrid performance bike.Trek Sport FX 6 Carbon is over $2700 .I think it's a great bike but it's not at a discount price anywhere ! Thanks for the info, dude .Stay strong and best of luck in the business .America is suffering right now with this economy. Let better days come soon 😊
Yes, that bike is great for what it offers. But definitely needs a price reduction.
Exactly, when you're selling frame n forks for upwards of 6k something is wrong, sadly most of the problem is us. We like bikes so we pay what they ask, just like the car market. 45k for a mini -no problem can I finance for 8years to get payments down!
Can not find a high end hardtail from trek or specialized
I got an email from Trek a few days ago about a big sale they are having. I'm not familiar with the Trek lineup, so I went through their emtb line up. My impression? Too many variations of the same thing with escalating prices the determining factor. Far, far too expensive imo. I still have my old Trek 9000 as well as a Trek Soho DLX. Well built and engineered bicycles at a good price for their time. But my go-to bike is a 2016 Haibike Full FatSix. The story of Haibike in the USA is a harbinger of what is happening now.
They did it to themselves. Pricing bikes with plastic frames that have a ten year lifespan higher than titanium isn’t going to work forever.
Does this mean that I will have trouble with my recalled Trek in the future?
Not necessarily. Trek is very supportive in their warranty and service. Support a Trek dealer though, not a Trek owned store. They’re more likely to benefit you, for the sake of maintaining your relationship as a customer, rather than benefiting themselves at the opportunity to sell you more while you’re in the store.
Canyon is especially ahead of the curve right now because they've put a lot of attention on marketing through social media and influencers. I guess the bigger guys think they're above that.
Or they have burned out or abandoned the influencers they did have. TH-camrs and independent racers used to be showcases for bike manufacturers, with their bikes immediately becoming very desirable to a Large population of followers. I only see a couple of influencers who are supported by manufacturers anymore.
But that's exactly my point, companies like Canyon and Factor are some of the few that ARE sponsoring cyclists with a social reach to the community. Popular local and national racers and social media influencers with a decent following are getting sponsored by companies like Canyon while the big 5 manufacturers are just showing up for world tour pros.
I own a bike shop (trek, giant and yeti). So far 24’ numbers are out performing 23’ numbers. It’s going to be a good year for bike sales, margins are still there with much better bike prices. Great time to buy a bike, and customers know that 🙌.
Me too, and thankful to have serious pro bike mechanics, you cant mail order a bike repair.
Same. Customers know who and where they wanna buy from. Support them and they support you.
'23 '24 vs 23' 24' . 23' is 23 feet.
@@vashon100it’s a great thing you clarified. All of us were confused. Keep up the good work!
My local bike shops has maybe 150 bikes in the store. If they were a little smarter they would "hide" 75% of those bikes in a storage unit. They have so many expensive bikes its almost hard to get around the store.
That's because no one has any money.
@@jasonbusch3624 They just choose when and how much they will spend..
@jaycahow4667 Meijer has Mongoose bikes on clearance right now. Doesn't get much cheaper than that and they still can't get rid of them.
@@jasonbusch3624no one you know. The people with money to buy $5k and up bikes are still able to buy them.
I would stay afloat by selling quality. I just bought a seat post for $230 that didn't have a tenth of the carbon fiber that the seat post that came on my fifteen year old schinn. The old carbon was a work of art, the new carbon fiber is a few strands inbedded in plastic. Consumers are tired of buying trash made from trash. I saw a bike for sell the other day for $4300 with a SX group set. Give me a break, the bike industry couldn't pay me to own that junk, I know I'm not going to give my money to a company for it. These big companies care nothing about customer satisfaction, it's only about getting as much profit as possible no matter what they have to sell to get it. The day they choke I will not shed a single tear.
Judging the “quality” of carbon fiber by aesthetics is a fools errand. You can have an extremely well engineered and properly built composite that looks like “cheap plastic” and you can have a complete pile of garbage barely fit for use that has an attractive weave.
Why did you buy a seatpost for 230 bucks? I hate to break it to you but you’re part of the problem.
@@greensleeves8095 People can buy whatever they wish. Your opinion on their purchases is irrelevant, as it will all be amortized across the total market demand. So, saying someone is “part of the problem” for their seat post purchase just makes everyone in cycling look like a judgmental dick.
@@greensleeves8095 I had no choice, I don't believe mixing carbon fiber with aluminum even though people are saying it's fine but I've heard the temperature causes the rate of expansion are different and will damage the fiber. I take my bikes out of a sixty eight degree house into 95 degree environment and what I have heard is if the two doesn't expand equally it puts stress on the fiber, kind of like the opposite when water freezes in a water hose. If it wasn't for that I would never have spent the money, it may give the industry the incentive to sell at that price but when different companies are holding hands and they're not real competition then people have no choice. Either pay to play or take up hiking in parks.
@@RyonBeachner If it looks like a fish and smells like a fish it is a fish
So 2020 the economy was good, products were reasonably priced. Pandemic hits and know one is working so everyone wants to ride. Demand goes way up and supply is way down. Some folks get stimulus checks. Prices go up. It's called supply and demand. Bike companies go a little overboard in supplying new bikes. High end and entry level. By 2022 the new administration has driven the price of everything thru the roof. Cost of living goes way up. A $12k S-works is out of the question. People like myself ( who have been riding since the first Specialized Rockhopper came out) buy good used bikes. Bicycle manufacturers, and dealers, will have ebbs and flows. If you want quality you always have to pay for it. I work on my own bikes but if you want good service, and the people at your local Trek shop to hook you up and take care of you, that comes at a cost. I love my local Trek Store! And while I could probably buy a new helmet online cheaper I will have Nicole order me what I choose so when I need all those little things, they are still there.
Just bought a Heybike City Run for $1000.00, hydronic breaks, directionals, electric horn, approx 55 miles on a single charge, can use throttle also
I used to race MTN bike race for a local retailer in the late 90's. i miss my Trek 6500 ZX! They do not make them the same. Mine was made in Waterloo.
As a consumer who has bought a couple of high end bikes ...im only watching these tyoes of info vids to see if the bikes im interested in buying are going down in price. I havent seen proof of that yet.
Luckily most of my friends that own bike shops do not stock Trek. They either just do repairs, etc or they will measure you and order your size theyll have a few bikes in the shop so you know what they look like of things like a Surly fatbike.
I waited about two weeks for my last new bike a few years ago a lot of the parts like the stem were used so my Surly was cheaper plus the black frame was $100 cheaper than a colored frame.
I left the bike industry back in 2015. Did it for 20 some years. Probably maxed out in 2005 with pay and compensation at about $32,000 a year with benefits. By 2015 I pulled out with $24,000 a year and $100 a month towards health insurance that I had to pay for on the open market. In my 40’s my love for the industry didn’t cut it anymore. I miss it, but not that much.
It's tough for sure.
As of Sept 2024, Intense Bikes has great sale prices on their Sniper line-up.
Every time a company fails and gets sold to the Chinese monster we all lose. The list of sell outs is long and sad. Competition amongst American and European bike manufactures results in better products for everyone. I hope Trek can make some solid decisions and survive. Or they will be at Target with mild steel frames and stamped steel cranks with colored tassels on the bars.
We will see! I just decided to keep my "worlds lightest madone slr9" and make it even lighter. So once people start seeing my bike treks sales are gonna go thru the roof! lol
Alot of great comments from the GUY. Follow the money. Who makes the most profit ? Greed. I had a bike shop ,for many years, sold Trek , Norco, and KHS. The market changed. There was no good reason for all high markups on bikes other than greed. Shops used to be based on customer service . Now I can buy product directly from Asia, I am buying at what was my wholesale price, delivered to my door. That's without being a bike shop owner.
Was it the manufacturers, wholesalers, or shops ,that decided to increase the profit line on bike, parts, and accessories??
Whoever it was, the business plan is failing. The customer is paying the price at the till .
You make your money in the repair end of the business and that should not change.
I think I just got a great deal bc of this inventory situation.. Domane SL 5 Gen 4 2023 closeout $1k discount @ $2,500. Love my local Trek shop.
So we just went to look at Trek bikes... actually order a couple of new bikes... I don't see this "over stock"... actually what it seemed like, they were out of almost every bike we wanted. So I am a bit confused about there being a huge overstock of bikes... the store even had half their racks empty, they said they weren't able to keep them full.
good video. thanks for you insights from your professional experience.
not a long-term solution, but the immediate for companies like Trek is to lower price. if demand stays the way it is, then only lower prices will clear the inventory. unfortunately that creates a lot of other problems for people in the industry, but that’s the only way unless federal government drops money from the sky again.
Great point
I learned a new word, 'SKU' pronounced ''skew': it means Stock Keeping Unit. Anyway, informative video. It really is a soap opera out there, "As the wheel turns so do the days of our rides", ha ha
Thanks for the info! And Watching.
Prices equivalent to motor bikes...no sales..😮
I'm glad I got my 920 before they quit making them.
file that under cut skus, even though that was a cool practical bike that the bike industry needs more of!
I wonder how much of this is due to more affordable “off-brand” e-bikes being everywhere now. Also I think frankly new bikes in bike shops are too expensive these days.
From my perspective, I would've assumed that the bike industry was flourishing. Seriously. I live in SW PA and rails-to-trails around here are expanding constantly, with more and more people cycling. Particularly ebikes! Which is cool, but not my thing. I prefer a fleet of bikes, with a bike for every occasion. But I'll take your word for it bacause you're looking at it from a much more educated perspective. Sad though, even tho Trek was one bike I never owned nor wanted. Strange. Thanks for the video
I've seen a big increase in e-bikes on Greenways many of whose riders are older. I believe that trend is going to increase.
That shirt’s hysterical. Where can I get one?
You can get that design on T-shirts, Coffee Cup, Hats, etc. at i-know-a-guy-bicycles.myspreadshop.com/
"...without further ado let's dive into this!" beings at 1:41
It seems people young and fit enough to “need” a $5K + bike, especially non-e versions, would be a pretty small demographic? Many of whom would be sponsored and not have to buy one anyway.
Hmm.. Honda XR150L or a new bicycle.?
Love the info you're putting out.
I appreciate that!
Real recognizes real. IBDs operating with a consumer perspective will thrive. This offers huge leverage for the shop with a big name dealer agreement. Big corporate is killing their brand identity with direct owned stores. Consumers crave connection with small business owners. They want to buy and service their expensive bikes from small locally owned shops. Big brands can keep their low-mid level bikes and make better margins on them. They'll still get serviced for 100% labor margin at a small shop with a local bike mechanic who cares about them and builds their cycling community.
My local Trek shop is closing down in a week. Has lots of inventory that’s not moving.
They will be doing some closures to lean up their storefront retail. That's if it was a Trek Crop store.
There were three Trek bikes I was interested in purchasing at the end of 23 but all were priced too high. Was hoping for some end of the year sales but they only knocked off $100-$300 so not worth it for me. Ended up buying used and customizing but would have rather bought new at a decent price.
Nothing to big to fail ! That’s the truth! I’m from mid American! Chicago! So I know what happened to Schwinn .
I’m a ex bicycle messager and amateur racer of the region. Plus I’m a been wrenching for about 25 years now .
The ride and fall has happened since the turn of the century. The mid American region is well based in the history of bicycle manufacturing.
As you said man they didn’t see it coming ! How ?
You rise to the top you get stupid then you drop ! Like a rock !
It’s a shame but at the same time the big name have been pushing small shops out for the last decade.
So to bad so sad ! I will try to get some good deals and keep on making the most with my little garage shop .
Helping
out the cycling Community the best way I can .
So keep the rubber side down and find your line . Keep your head on a swivel and get to your destinations safely!!!!!
I guess we could see this coming with the pricing of bikes. They were getting way past what the average consumer, many of whom would eventually upgrade, would pay. Personally, I looked at Treks a few months ago. minimum of $2,500 to get what I wanted. I'm not a racer, but have been into cycling for 30 years. I ended up going the used market and got a much better bike with Di2 for less than half the price. I think, too, that manufactures pushing a lot of features like disc brakes, and even digital groupsets, makes the bikes more complicated and costly for the average consumer, when good mechanical groupsets and good rimbrakes are more than adequate for average buyer. Oh well...
As a 30 year MTB rider, and 25+ year bike commuter, I cant wait for rim brakes to go the way of the dodo. No more unsafe worn out rim sidewalls, certain stopping in the rain and wet, way less maintenance and noise, been riding disc brakes for 20 years, never want to go back to rim brakes.
Nobody in mgmt got let go just the workers who did more with less, Check the driver of the Sparkle Bus not the passengers Who gave 120%
JB isnt selling his house or looking for a new Job. The best Team on the Field failed and the employees suffer
My last bike was a 2nd hand sworks. Like new with receipt etc. purchased in 2022, I’m not buying a 10k plus new bike. Industry needs to readjust. Bloody robbery IMHO.
So is now not a good time to get into biking? Literally was about to get a Trek (seems to be what is recommended) . Or should I wait?
Now is a great time to get a bike, new or used. Prices have dropped in most cases.
I knew it was over when Trek outsourced and stopped making Treks in the u.s.
Title "That's it for Trek Bikes?" LOL no, not even close. They'll be just fine.
That's what they said about the big banks that just failed
@@jasonbusch3624 apples and oranges.
Not saying Trek can't but they are far from hurting. They are fine and they are doing this to save profit not because they are close to filing for bankruptcy.
Yeah, the bike industry is hurting but Trek will survive this
@@liquidSpin not really. Where does Trek get financing from?
@@jasonbusch3624 banks haha but even still Trek isn't loaning money to other companies and profiting from interest on said loans.
I honestly think Trek will ride this out as they are just moving ahead to not lose profits. Downsizing and slashing prices and ride the slow market.
Just picked up a Roscoe 9 for $1800 last weekend. They are on sale for $2k and my local Trek shop stacked the military discount which made it $1800. IMO $1800 for the Roscoe 9 is a steal considering the spec
Hard to justify spending $1000+ on a basic bicycle when a Honda Navi mini motorcycle is only $2000. It’s not smart money.
Right!?!?
given the LBS Trek shops that closed (my local included), who is REALLY surprised?
Is the trek fuel worth the price?I'm just getting back into mountain biking after 30 years,my last bike was a new trek for 700dollars in 1990.At 64 yrs old I might buy a schwinn or mongoose.
Top Fuel or Fuel EX? I had an EX but traded in on more of a cross country friendly bike. If I ever do return to a trail bike, the EX is at the top of my list. Between my wife and I we have 3 Trek bikes. They are going to be fine regardless of the fearmongering video. The shop I go to always has new inventory because they sell so much.
I just bought an old six speed steel frame cross bike that I am re-doing. Guess what? My daily workouts are going to be the same as if I was riding a $4k bike.
2018 Diamondback Release, 2020 Stumpjumper Carbon Expert, 2019 Scott Genius, 2020 Nukeproof Mega, 2019 Turbo Levo. I purchased each one used between $1,400 and $3,400. You don't have to buy new and probably shouldnt if you are just starting out.
The problem is not for Trek, is for every bike brand. And it isn't completely their fault, the things rocketing the prices aren't necessary the bike frames but the exorbitant prices of electronics groupsets and also the diverse components like high priced carbon handlebars, the wheels, the saddles, even the tire prices are ridiculous. They all have to sit down and come to a solution. Shimano and SRAM need to lower their crazy prices, tire manufacturers, everyone have to back down.
Overpriced bicycle industry is collapsing? Duh!