Price Cuts for Bikes Under Way?
TAICHUNG, Taiwan – At the mid October held Taichung Bike Week prices were a much discussed matter. In particular as the costs for raw materials like steel and aluminium have been dropping by 30 to 40% lately while also labour cost increases were limited in China this year. Will this bring lower prices for ModelYear 2016 and 2017 bikes?
Such price cuts will follow on the price increases for ModelYear 2015 bikes that were implemented last March/April. At that time the big drop of the euro value against the US dollar had such a major impact on procurement costs that bike prices had to be raised. Will exactly the opposite take place now?
Retailers will not be happy
Whether bike makers and importers will bring their suggested retail prices down because of lower prices for the components they use in the assembly, is THE question for the next months.
In particular as retailers will not be happy when they will be confronted with the lower prices for MY 2016 bikes. In particular as their inventory levels are expected to be higher than usual after a season that saw sales reaching a somewhat lower level compared to last year when weather conditions were better.