Bike sales in decline

[SpokeyDokey]

Price rises will be having an effect.

I looked at a Specialised Sequoia Elite at the end of 2015 @ £1250.

Went up to £1500 last year and is now £1850.

Weak pound playing its part.

 

[Smokin Joe]

Price rises will be having an effect.

I looked at a Specialised Sequoia Elite at the end of 2015 @ £1250.

Went up to £1500 last year and is now £1850.

Weak pound playing its part.

No doubt.

But surely that's a great opportunity for a budding entrepreneur or two to start manufacturing frames and components in this country? I don't pretend to be an economic expert (All economic experts are only pretending anyway) but there is a point of view that an overvalued pound is largely responsible for the decline in British manufacturing.

Maybe this is a cloud with a silver lining?

 

[screenman]

One of the biggest cost of running a business is wages and there is somewhere we struggle to compete with. Not blaming people for wanting higher wages as this is a reasonable expensive country to live in.

 

[pclay]

Perhaps the decline in sales is linked to the soaring price. There's a massive increase from last year. My 2016 bike that I purchased was an extra £500 for the 2017 bike with the same spec.

E.g. Cannondale synapse carbon di2:

2016 £3200
2018 c£3800

 

[screenman]

Perhaps the decline in sales is linked to the soaring price. There's a massive increase from last year. My 2016 bike that I purchased was an extra £500 for the 2017 bike with the same spec.

E.g. Cannondale synapse carbon di2:

2016 £3200
2018 c£3800

Why do you think there has been a price increase?

 

[Crankarm]

Why do you think there has been a price increase?

Brexit.

 

[screenman]

Brexit.

Surely not As an importer an distributor of American tools I would say about a 18% increase in purchasing costs. What has also gone up by about 30% since the vote is carriage, that was almost instant.

 

[400bhp]

With

No doubt.

But surely that's a great opportunity for a budding entrepreneur or two to start manufacturing frames and components in this country? I don't pretend to be an economic expert (All economic experts are only pretending anyway) but there is a point of view that an overvalued pound is largely responsible for the decline in British manufacturing.

Maybe this is a cloud with a silver lining?

sunk cost (machinery) building a business on current low exchange rates staying low. Big risk.

 

[Smokin Joe]

With

sunk cost (machinery) building a business on current low exchange rates staying low. Big risk.

All business start ups are a risk. That's why they call people entrepreneurs.

 

[400bhp]

All business start ups are a risk. That's why they call people entrepreneurs.

And the smart ones aim to pick the ones with the best £return for unit of £risk.

Whether the above business is a risk worth running isn’t something you or I can answer without looking into it in more detail.

I’m just pointing it out that the above business is predicated on the exchange rate (versus the atypical places where manufacturing is done by the way) remains low.

 

[screenman]

I just googled average wages in Vietnam proper eye opener.

 

[PhilDawson8270]

If someone made a BMW bike then people will buy them by the dozen, and gladly pay extra to have it with a chain fitted.

Most BMW owners probably have Pinarellos.

 

[petek]

I doubt that price affects sales. Fess up, when you want a new bike.. you buy one. Far more likely to be fewer novelty-buyers who, briefly dabbled with bikes after the Olympics when it was trendy. Like butterflies those folks will have fluttered on to a new hobby. Hence the number of decent 'low usage' second hand bikes out there which also hits new bike sales. Except, to 'us'.

 

[Banjo]

Rumour has it the government are considering some form of financial encouragement for people to buy e bikes.

Could be a lifeline to bike shops .

 

[Crankarm]

Rumour has it the government are considering some form of financial encouragement for people to buy e bikes.

Could be a lifeline to bike shops .

Shocking.