Is it normal and not surprising to change MSRP/RRP mid model cycle though? That seems weird. I always figured bikes were made now for like 2022/2023 anyway 
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A businesses purpose is to produce value. Not to create jobs.
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Didn’t mean to imply this was an excellent job program or that I’m naive enough to think that trek should lay-up frames here. Good news for consumers who want to order something that they might actually be able to get this year. I think GG will be able to take advantage the current climate in the bike business especially with their pricing. With perhaps the best msrp for a carbon frame set? Good for them. I’d like to check one out in person for sure.
We do have the same setup.
Automotive doesn’t only affect car manufactures. There is so much more to it. There are for instance sake large parts distributions who have a very similar setup to most bike companies. Only difference is, they own that “lbs” close to the customer.
Again, very similar.
Also, again 30-70% margin increases or a quadrupled profit speak for itself.
Our volume increased significantly as customers stepped away from buying new cars. Hence the car park aged which was a godsend for us. Also the cold winter in some regions was a godsend. In some product categories we were out of stock for weeks.
No the best thing I could do is to hope that their management lets some of the record earnings trickle down to them.
Nobody is going crazy. I simply called the statements out that explain price hikes of up to 12 percent with increased costs which is simply not the case. The profit statements clearly show that. Hell, the CEO of Dorel even said that their costs stayed flat.
I’m assuming this is the same person I was talking to before even though you apparently changed your name and went anonymous?
I found the disconnect:
You are making up your own numbers! No wonder you don’t understand the logic. Where did your 30-70% margin increase figure come from?
I realize that I got pretty wordy but in a nutshell: these moves were an attempt to return margins to where they were in 2019, they are not an attempt to radically increase margins as you are suggesting.
Due to the tiered pricing structure that you claim to understand, for a bike company to see a 30% margin increase like you are suggesting, they would generally have to increase MSRP by around 150%, not 10%.
Numbers are hard so don’t hesitate to ask for more clarification, we can get through this together!
This is a gross generalization. I also never made any claims in relation to either of these statements.
But I’m glad you shared your opinion of the purpose of a business with us
Agreed, I love that they are progressing and It will be interesting to see where this technology goes, sorry if my last response came off hostile, this thread got my blood pressure up.
I also appreciate the elegance of their modular frame design and think that this will become far more common.
My understanding is they are using a new aerospace technology that replaces the epoxy matrix with some type of nylon which is why they are able to automate the lay-up process and upcycle frames.
They claim to have some sort of patent pending on the process but Revel bikes is also producing rims through a third party manufacturer with similar technology. They haven’t announced plans to move frame production to this process yet though.
The patented manufacturing claims are interesting because if true they would have a pretty good corner on the market for thermoset matrix composite frames unless other manufacturers are able to find a work around. Usually they do.
The other factor is material availability. I remember hearing that they are using US sourced carbon which cannot be cheap or plentiful, even if the aerospace industry is spooling up production with these materials.
It will be interesting to see where this technology goes and which process is more prevalent in a decade. I think the thermoset matrix is really going to start to take off as long as it doesn’t get tied in knots with patents.
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You said ‘sure they’re made here but they don’t make a lot of jobs. They could make more jobs and be competitive.’
So you’re the one that started handing out opinions on what businesses should aim to be.
Just saw something from an old buddy of mine in the bike biz…one of their product managers is getting quoted a 700 day lead for some components from a major supplier.
Prices ain’t coming down any time soon on bikes…if ever.
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700 is WILD. I should start stocking up on things I like
Buying extra chains and brake pads when you can find them is not a bad idea at all right now…
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I want to to switch from my 52/36 chain rings to 50/34… Market says no.
Keep in mind that real and perceived scarcity can drive up demand due to ‘stocking up’ or hoarding. With lead times in the hundreds of days, rational actors will place orders much further out than they have before, and when everybody does this it doesn’t take much padding of orders for all production to be allocated. Things could snap back much quicker than we expect if it is largely this aspect driving demand. Prices are different than availability, so it is possible that the price increases will stick, even when lead times are more normal. If bike demand remains higher than previously, and stays that way after all the restrictions are over then the scarcity will remain an issue.
It remains to be seen what actual end user demand will be in a year. I think that shortages right now are due to actual end-user demand, but I’m somewhat skeptical that true end-user demand will remain high for years. I hope it does, as that means more people on bikes, but that will come with some continued pain. I was planning to look seriously at getting a new bike in the near-term, but I’ve deferred that until selection and prices stabilize. There may be a nice used market in a few years 
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JensonUSA has DA chains most of the time, I picked up two recently so still have a spare
Kaufman trailers have increased prices 3x this year
We should just be happy that most bikes and related parts aren’t made from lumber 
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Absolutely…I just palced a forecast to our corporate office / factory for a ridiculous number of our products for 2022 for this reason exactly - to ensure supply. I doubt i’ll hit the numbers I submitted, but need to make sure I have the goods available if the demand is there.
And everyone else is doing the same thing, which drives up demand which drives up price which…
And yes, I would not be surprised if there is not a bike “bust” sometime in the next 12-18 months. The industry has been slow to ramp up capabilities because no one has really believed the demand is long-term.
Have been looking at getting a Tarmac SL7 Pro and they went from 7,000 to 7,800 with an 8 week lead time and payment due at purchase. Hopefully I like the bike and get the correct size
8 weeks that is not too bad considering. I was playing around with getting a Sworks as I can sell my SL6 for top dollar now.
Yeah I’m looking for an aero disk race bike in the 6-7k range and that seems super hard to find right now!