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Prices Going Up?

Old 09-19-18, 08:55 AM
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Prices Going Up?

With the new tariffs being announced, what cycling brands are affected? I'm not wanting to start a political rant, just curious how do we know which brands are affected and which brands are not.
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Old 09-19-18, 09:01 AM
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https://www.bicycleretailer.com/indu...s#.W6JkmvlRe02
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Old 09-19-18, 09:04 AM
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I wonder if buying bike parts from Ribble and the like will gather tariffs as well?
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Old 09-19-18, 09:10 AM
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Old 09-19-18, 09:18 AM
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Old 09-19-18, 09:23 AM
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The link has the list of products to get tariffs starting on 9/25. If you search on bicycle, you'll see pretty much anything made for a bicycle or bicycle accessory is effected so unless a deal happens, it would seem pretty certain that prices will increase. The current 10% tariff may not be so noticeable but they have said that it will increase to 25% in January if nothing is resolved by then. If I were considering a new bike, I don't think I'd wait long to pull the trigger.

Tariff list
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Old 09-19-18, 09:27 AM
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The market is so screwed up anyway I only see this adding to price fluctuations both actual and perceived as retailers attempt to both balance increased costs passed from the manufacturer as well as potential panic purchasing to avoid future cost increases.

I also suppose that since we are going into a low demand time there will be a decrease in orders and inventory for Spring/Summer 2019 so it may end up where regardless of what the price and sales levels do or do not do, stock levels will be lower than prior years. The time to purchase a new groupset or selection of spare parts other than regular wear items may be right now or much further into 2019. The common idea to wait until winter and hit the clearance/sale bin may not work this year. If the tariffs do not work as a negotiation tactic and the back and forth trade escalations continue for several more months prices can really only increase during high demand as inventory will be lower, costs at the re-seller will be higher.

The real question becomes at what point is it prudent to stock spares as opposed to potentially needing to buy in the future at a higher price. I am guilty of having several hundred dollars in spare parts that would probably be better invested in low/no fee ETF to track ahead of inflation - and then just wait and buy parts as the ones I'm using fail - even if the perceived cost is higher.

Anyway, personally I'm not going to need or really want to buy anything other than a tire here or there so I plan to just watch and see what happens.
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Old 09-19-18, 12:51 PM
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Proprietary component/frame designs have nothing to do with this?
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Old 09-19-18, 04:27 PM
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I've heard that Trekmogul has been setting himself up for an E-tailing operation of NOS stuff.
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Old 09-19-18, 04:36 PM
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That'd be a bummer seeing as how new bike prices have been so flat and stagnant over the years. Will be hard to deal with price increases on goods that we usually pay so little for.
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Old 09-19-18, 04:54 PM
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Originally Posted by tagaproject6 View Post
I wonder if buying bike parts from Ribble and the like will gather tariffs as well?
Wouldn't UK purchases be exempt?
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Old 09-19-18, 04:54 PM
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Originally Posted by aplcr0331 View Post
That'd be a bummer seeing as how new bike prices have been so flat and stagnant over the years. Will be hard to deal with price increases on goods that we usually pay so little for.
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Old 09-19-18, 08:34 PM
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Originally Posted by 02Giant View Post
Wouldn't UK purchases be exempt?
It doesn't matter. Wiggle and other UK retailers who sell heavily into the US now adjust their prices to be much more in line with the US domestic price coming from retailers like JensonUSA or Universal Cycles. By and large the prices are going to be much closer to the US price, a good deal but nowhere near as good as they were 4-5 years ago. I imagine if US tariffs drive up prices domestically the UK retailers will adjust as well.
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Old 09-19-18, 09:32 PM
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Originally Posted by Ogsarg View Post
The link has the list of products to get tariffs starting on 9/25. If you search on bicycle, you'll see pretty much anything made for a bicycle or bicycle accessory is effected so unless a deal happens, it would seem pretty certain that prices will increase. The current 10% tariff may not be so noticeable but they have said that it will increase to 25% in January if nothing is resolved by then. If I were considering a new bike, I don't think I'd wait long to pull the trigger.

Tariff list
The race to beat the tariffs is helping the economy to continue to sing along. Consumers and especially businesses both think the same way on spending ahead of an increase in cost. Unless they are dropped soon, tariffs will end up hurting most everyone.
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Old 09-27-18, 05:22 PM
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I was shopping a Trek Domane to replace a Roubaix that I don't like. LBS that I was working with advised that prices had gone up and would go higher in January. I decided to cancel new bike. Not sure what I'll do at this point but am thinking ebay for a used frame and switch newer components from Roubaix to that frame.
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Old 09-28-18, 04:35 AM
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Originally Posted by AlmostTrick View Post
Unless they are dropped soon, tariffs will end up hurting most everyone.
Unless they force the other countries to the negotiating table to work out trade deals that don't find us on the losing end and suffering a nearly 500 billion dollar annual trade deficit. I just bought two US made titanium bikes, so I am in the clear for whatever takes place.
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Old 09-28-18, 06:35 AM
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Originally Posted by Paul Barnard View Post
Unless they force the other countries to the negotiating table to work out trade deals that don't find us on the losing end and suffering a nearly 500 billion dollar annual trade deficit. I just bought two US made titanium bikes, so I am in the clear for whatever takes place.
I don't think you understand how trade works. Deficits are not always a bad thing.

Increased tariffs won't force anyone to the table as it isn't paid by the county of origin, it's paid by the US CONSUMER.

Increased tariffs won't create a domestic bike manufacturing industry as no one in NA can produce a $400-$500 bike. Without those bikes, no LBS can survive.

These tariffs are perhaps the stupidest thing I've ever seen. No country that has supported mercantilism has ever prospered. Great depression, anyone?

Dealers are already losing their minds over the Trek increases. As we see the 25% kick in for the 2019 season we will also see LBS fall like dominoes.

This is bad. Very bad.

And stupid af.
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Old 09-28-18, 06:49 AM
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Originally Posted by Paul Barnard View Post
Unless they force the other countries to the negotiating table to work out trade deals that don't find us on the losing end and suffering a nearly 500 billion dollar annual trade deficit. I just bought two US made titanium bikes, so I am in the clear for whatever takes place.
Americans WANT the low cost products from China as much as they want to sell it to us. That’s why there is a trade deficit, and it has little to do with any “deals”.

Your two new bikes are great I’m sure, but no one expects expensive US built bikes to replace the lower cost imported bikes on any notable level.

I question the claim that the US is on the “losing end” of trade when our standard of living is still much higher than it is in the countries building the majority of bikes (for us!) now.

Americans want, no EXPECT, high paying jobs while demanding low cost products. How long does anyone expect this model to last?
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Old 09-28-18, 09:34 AM
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Originally Posted by Bob Dopolina View Post
Dealers are already losing their minds over the Trek increases. As we see the 25% kick in for the 2019 season we will also see LBS fall like dominoes.

This is bad. Very bad.

And stupid af.
Do you think you would have a different opinion if your products were made and designed in the USA?
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Old 09-28-18, 11:08 AM
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I think pretty much most people think that even the asian-built bikes are overpriced. ie. how is it that a mechanical bike costs the same as some motorcycles? $3K+ framesets is just silly for CF/plastic tubes stuck together.

That said, there are US manufacturers. If you want US made CF bike, tried eg. Allied Cycle Works - eg. they offer their Allroad Dura Ace starting at $7200. A Trek SLR8 goes for $8300. I don't know what the SLR8 Disc went for before the price hikes, but how are consumers benefitting? Of course most of the parts going on bikes (which tend to be 50% of a bike's actual cost) aren't made in the USA -- Shimano, SRAM and Campy aren't manufacturing in the US, even though SRAM is a US company.
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Old 09-28-18, 11:42 AM
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In 1997 my Raleigh R700 with Easton Elan frame, Kinesis carbon fork and 600 Ultegra group cost $1200. In April I paid $51 less for my carbon disc DB Podium (admittedly with a discount). I personally don’t like the fact all the once made in the USA bikes are no longer made here like my Raleigh actually was. The tariffs aren't permanent so everyone relax, open your mind and see how it plays out.
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Old 09-28-18, 11:45 AM
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All the more reason to by Campy!
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Old 09-28-18, 11:47 AM
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Originally Posted by Fox Farm View Post
All the more reason to by Campy!




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Old 09-28-18, 01:53 PM
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Don't think buying American is going to save you. The tariffs drive up demand for products from other countries and the prices go up everywhere. As an example, Ford recently announced the steel tariffs had cost it a billion dollars in profits even though the majority of the steel they buy is from US sources.
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Old 09-28-18, 02:16 PM
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Originally Posted by Spoonrobot View Post
Do you think you would have a different opinion if your products were made and designed in the USA?
I'd like to take the liberty to answer this question and say: "No, I wouldn't think otherwise." If a foreign manufacturer can produce my product as good as I do, but at a lower cost, they deserve to sell it more than I do. That's how COMPETITION works. American manufacturers are afraid of international competition because they know they can't compete with the cost advantage of foreign manufacturers. No tariff is going to fix that, but leave a bigger dent in consumers pocket. The manufacturing days of the US economy are long gone. Everyone is becoming a service worker nowadays (77% of the total value added is from services sector in 2017).
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