Eurobike's Main Topic: Will Dealers Accept Price Hikes?

FRIEDRICHSHAFEN, Germany - Bikes as well as parts and accessories are becoming more expensive. That’s what this year’s Eurobike, that opens its doors tomorrow at 08:30 am, will be all about. The big question is how dealers will respond to the price increases.

Every supplier in the bike business has already raised its prices or will announce it tomorrow at the opening of the 19th Eurobike. From bike makers to part producers as well as companies producing and/or distributing accessories varying from bike wear to bike bags; all have or are raising their prices. The 2011 line-ups are on average between 5 to 10% more expensive as the ones for 2010.

How dealers will respond to the price increases is the big question tomorrow and the days after up to the closing of Eurobike 2010 next Saturday late afternoon. Will it greatly affect their willingness to place orders?
The China labour crisis; the euro exchange rate; quadrupled shipping costs as well as higher prices for raw materials are the elements that lead up to the price hikes.

The price increases for 2011 bikes and P&A could be followed by more hikes. In particular when the Chinese government under heavy pressure for the US and EU, decides to finally take action on the yuan appreciation. Bank economists expect that this appreciation will take place during the third quarter of this year. They indicate a possible 15% raise of the yuan exchange rate.