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Price Hikes Accepted by Dealers; Order Intake Not Satisfactory

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After the three trade days the result of this years Eurobike is that the widespread announced price increases for complete bicycles as well as parts & accessories didnt meet with great opposition from distributors and dealers. However, the order intake

Price Hikes Accepted by Dealers; Order Intake Not Satisfactory

After the three trade days the result of this year’s Eurobike is that the widespread announced price increases for complete bicycles as well as parts & accessories didn’t meet with great opposition from distributors and dealers. However, the order intake didn’t prove to be satisfactory at lots of exhibitors.

One day before the opening of the 19th Eurobike, this trade journal predicted that price increases would dominate the atmosphere this year’s show. These hikes prove to be not limited to two or three percent. At tyre manufacturers, for instance, the price raise is on average 8%; other component makers like for instance manufacturers of brakes (with production in China) are raising prices with 12 to 15% while bike makers (as reported earlier) are increasing with 5 to 10%.

Despite these considerable hikes the conclusion after the three trade days is that they were, generally speaking, accepted by dealers and distributors. It didn’t affect the business that much as re-sellers are aware of the situation with exchange rates, the China labour crisis, raw material prices and the quadrupled shipping costs.

However, despite the fact that prices didn’t spoil the atmosphere of the business talks; order intake was for many exhibitors not on a satisfactory level at this year’s Eurobike. In particular when they weigh their orders against the investment made in booth, staff and products.

But other factors come into play when looking at the current order intake levels. It’s affected by sales results in the first half of the year which on many European markets were written in red figures; by the credit crunch as well as by the fact that dealers are hesitant in placing winterorders.

 

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