High gas prices = Higher bicycle demand = Higher prices for bicycles and components?
#1
Retro-nerd
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High gas prices = Higher bicycle demand = Higher prices for bicycles and components?
In Georgia, of course...
https://news.mywebpal.com/partners/68...ews657293.html
More people riding bicycles in Colorado...
https://www.rockymountainnews.com/drm...063496,00.html
Joplin Missouri as well
https://www.joplinglobe.com/story.php...id=204714&c=87
Will this result in higher prices for bicycles and components?
https://news.mywebpal.com/partners/68...ews657293.html
More people riding bicycles in Colorado...
https://www.rockymountainnews.com/drm...063496,00.html
Joplin Missouri as well
https://www.joplinglobe.com/story.php...id=204714&c=87
Will this result in higher prices for bicycles and components?
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You're dreamin' - The average SUV driver may commute on their existing coaster-brake cruiser that they dig out of their garage, but they aint about to become regular about it. So long as they can afford the gas, they'll be driving. Or, as I heard one matron put it, "Gas prices are getting so high I'm going to have to quit smoking to afford my gas!"
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why is it that american cars are so big... europe has +5dollar gallons and they arent whining....
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Of course, cost can actually go down as demand goes up. Many people buy calculators and computer printers and movies, and these items are relatively cheaper now than in the early days when few people bought them.
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One reason that computers and printers can go down in price as demand goes up is that they are renewable. The oil in the middle east, alaska and the gulf is most unfortunately not. Eventually it will run out. Thankfully not during our lifetime!
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Originally Posted by madman91
why is it that american cars are so big... europe has +5dollar gallons and they arent whining....
I laugh as I walk by the big SUV's, wondering if the gas company's had to put a lien on their house yet.
My wife works for Red Cross, & one of her volunteers actually asked her if I had an extra bike so he could start commuting to work.
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Originally Posted by the1jzahn
One reason that computers and printers can go down in price as demand goes up is that they are renewable. The oil in the middle east, alaska and the gulf is most unfortunately not. Eventually it will run out. Thankfully not during our lifetime!
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Originally Posted by FarHorizon
Or, as I heard one matron put it, "Gas prices are getting so high I'm going to have to quit smoking to afford my gas!"
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The reason gas is so much cheaper here in the US is because of our high consumption. To put it in a different perspective, we are the Wal-mart of the petroleum market. We can negotiate lower prices because of our high volume. If consumption here is vastly reduced, then we start seeing Europe-level pricing.
By the same token, if substatially more people start riding bicycles, then you can expect prices to drop after volumes go up. However, the initial supply constraint as demand rises and suppliers race to increase production capacity/volumes would cause a delay before the price drop. Fewer deals would be offered, as MSRP would become the norm.
Reality? We are a "car society" in the US. Gas would have to hit $6-$7 per gallon before Americans would dream of giving up the beloved automobile. Heck, I'd have to cycle 15 miles to catch the train every morning (in business casual!) Moving closer to work would be way too expensive right now (+$100k min) just to move closer to work. Now imagine housing prices in the city when EVERYONE wants to move closer!
Give up the car? Not gonna happen....
By the same token, if substatially more people start riding bicycles, then you can expect prices to drop after volumes go up. However, the initial supply constraint as demand rises and suppliers race to increase production capacity/volumes would cause a delay before the price drop. Fewer deals would be offered, as MSRP would become the norm.
Reality? We are a "car society" in the US. Gas would have to hit $6-$7 per gallon before Americans would dream of giving up the beloved automobile. Heck, I'd have to cycle 15 miles to catch the train every morning (in business casual!) Moving closer to work would be way too expensive right now (+$100k min) just to move closer to work. Now imagine housing prices in the city when EVERYONE wants to move closer!
Give up the car? Not gonna happen....
Last edited by SteveRogers; 09-12-05 at 12:15 PM.
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Americans are way too dependant on their cars. The suburban tracts, drive through windows, freeways or expressways, roads dominated by large motor vehicles, and other traps keep people in line (both figuratively and actually).
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With more people buying bicycles I would say prices would go down. Why? Because bicycles and parts would be able to sell in higher volume.
This is the opposite of an auto company like Bentley which bases it's pricing on low volume sales with high prices.
This is the opposite of an auto company like Bentley which bases it's pricing on low volume sales with high prices.
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Just relax. It will take sometime for the cycling fever to hit them all. We can be sure that all those lazy couch potatoes will not jump up and be zapped by the cycle love bug. Motorcycles may be the first. I am getting one in the spring to make some of my comutes a little less stressful. However, i need to figure out how to strap my bicycle to the thing? I'll figure something out.
cycle on!
cycle on!
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Originally Posted by folder fanatic
Americans are way too dependant on their cars...
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Originally Posted by georgiaboy
In Georgia, of course...
https://news.mywebpal.com/partners/68...ews657293.html
More people riding bicycles in Colorado...
https://www.rockymountainnews.com/drm...063496,00.html
Joplin Missouri as well
https://www.joplinglobe.com/story.php...id=204714&c=87
Will this result in higher prices for bicycles and components?
https://news.mywebpal.com/partners/68...ews657293.html
More people riding bicycles in Colorado...
https://www.rockymountainnews.com/drm...063496,00.html
Joplin Missouri as well
https://www.joplinglobe.com/story.php...id=204714&c=87
Will this result in higher prices for bicycles and components?
#15
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Originally Posted by SteveRogers
The reason gas is so much cheaper here in the US is because of our high consumption. To put it in a different perspective, we are the Wal-mart of the petroleum market. We can negotiate lower prices because of our high volume. If consumption here is vastly reduced, then we start seeing Europe-level pricing
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This is Africa, 1943. War spits out its violence overhead and the sandy graveyard swallows it up. Her name is King Nine, B-25, medium bomber, Twelfth Air Force. On a hot, still morning she took off from Tunisia to bomb the southern tip of Italy. An errant piece of flak tore a hole in a wing tank and, like a wounded bird, this is where she landed, not to return on this day, or any other day.
This is Africa, 1943. War spits out its violence overhead and the sandy graveyard swallows it up. Her name is King Nine, B-25, medium bomber, Twelfth Air Force. On a hot, still morning she took off from Tunisia to bomb the southern tip of Italy. An errant piece of flak tore a hole in a wing tank and, like a wounded bird, this is where she landed, not to return on this day, or any other day.
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Originally Posted by madman91
why is it that american cars are so big... europe has +5dollar gallons and they arent whining....
Kind off odd, when you consider how bad drivers Americans can be... something that could be corrected at a much lower cost.
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Originally Posted by kali
Motorcycles may be the first. I am getting one in the spring to make some of my comutes a little less stressful. However, i need to figure out how to strap my bicycle to the thing? I'll figure something out.
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Originally Posted by SteveRogers
Reality? We are a "car society" in the US. Gas would have to hit $6-$7 per gallon before Americans would dream of giving up the beloved automobile. Heck, I'd have to cycle 15 miles to catch the train every morning (in business casual!) Moving closer to work would be way too expensive right now (+$100k min) just to move closer to work. Now imagine housing prices in the city when EVERYONE wants to move closer!
You have a good point in that housing prices in the city when EVERYONE wants to move closer could go through the roof and I see this happening already! All new high rise construction is for luxury apartments costing 175k and up to 1 million for one or three bedroom apartments. People are moving back into the city in droves and for the first time in my life, I'm seeing construction in areas that have been abandoned for 75 years! Construction is happening everywhere in swamps, slums and toxic waste sites! It's incredible.
However, living in the burbs is not cheap either. Homes in the burbs (New Jersey) are not averaging about 275K and up if you want to live there. You're only hope for inexpensive housing are the exurbs or 125 miles away from the city. Traveling 225 miles a day to work in the city should be real fun. Of couse, you can move to Alaska and live with the bears. ;-)
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"I have to say the price of gas has had no impact in my life."
Just wait a little while. You know all that stuff you buy at the grocery store, it gets there with fuel. The public transit, might be electric, but that power gets generated somehow probably coal/oil/nuclear. The lights in your house, on the street, and in the store as well. Does not really matter which one as they are all tied to each other, same with propane and natural gas. So this winter expect that heating bill to be 30-50% higher.
Just wait a little while. You know all that stuff you buy at the grocery store, it gets there with fuel. The public transit, might be electric, but that power gets generated somehow probably coal/oil/nuclear. The lights in your house, on the street, and in the store as well. Does not really matter which one as they are all tied to each other, same with propane and natural gas. So this winter expect that heating bill to be 30-50% higher.
#20
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Originally Posted by SteveRogers
Give up the car? Not gonna happen....
Robert
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Originally Posted by Rev.Chuck
So this winter expect that heating bill to be 30-50% higher.
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No so cal, but middle cal, sacramento. middle of the valley. they pay for it with 100 degree summers and fog in the winter. Oh, and horrible, impatient traffic.
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Originally Posted by ViciousCycle
Of course, cost can actually go down as demand goes up. Many people buy calculators and computer printers and movies, and these items are relatively cheaper now than in the early days when few people bought them.
Actually you have skipped a few steps. It goes like this...
Demand goes up -> inventory decreases -> price goes up temporarily -> profitability goes up -> production goes up -> production surpass the demand -> inventory increases -> price comes down
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Originally Posted by dobber
No, Europe has a much higher taxation rate on gasoline.