Revenue Round Up: 'We Really, Really Like What We Are Seeing'

Mar 18, 2021
by James Smurthwaite  

It won't surprise anyone who has even loosely followed the movements of the cycling industry in 2020 that it has been a bumper year. Now, in spring of 2021, most publicly traded brands have released their financial statements for the year and it makes for more happy reading for the industry. Revenues are up across the board and, despite on-going issues surrounding shipping and currencies, a lot of brands are forecasting for the boom to continue for the next few years at least.



Shimano Sees 3% Rise in Bicycle Component Sales After Rocky Start to the Year

Shimano factory visit 2018

Despite the setbacks of global lockdowns and factory closures, Shimano ended the year with a 2.7% net sales increase in its bicycle department, up to 297,777 million yen, and an increased operating income of 18.4% to 68,494 million yen year-on-year. The first quarter saw Shimano sales slump 15% but it was able to recover following the incredible demand throughout the rest of the year. Shimano said the demand for bicycle parts was predominantly in the USA and Europe and it didn't see a significant increase in sales in its native Japan. The introduction of the new Deore groupset was one of the big drivers of the brand's success as the new groupset proved a hit with media and customers alike.

More info, here.



Fox Expects $1 Billion in Sales in 2021 and is Already Booked Out into 2022

Fox 38 vs RockShox Zeb

Fox's bike division grew 22% over the year to total $367 million in 2020, this includes an incredible final quarter that was up 41% over the previous year. Total sales for the Specialty Sports (bikes) and Powered Vehicles division came to $891 million, which, according to Bicycle Retailer and Industry News, has allowed Fox to forecast its sales will top $1 billion for the first time in 2022 with estimates in the range of $1,035 million to $1,085 million.

Fox's CEO, Mike Dennison, reportedly told analysts on a call that orders are booked out into 2022 and that the brand had been able to increase its capacity in its Taiwan factories. He said, "We really, really like what we are seeing relative to the premium category. Obviously we fit in really well in that space and that helps."

More info, here.



Accell Group Net Sales Up 17%


Accell Group, the parent company of Ghost, Haibike and Lapierre, has announced a 10.6% increase in its bicycle sales and a 36.2% increase in its parts and accessories sales, which has led to a total sales amount of €1,296,000, up 16.7% from 2019. Accell also saw a huge increase in net profit, from €2.8 million in 2019 up to €64.8 million in 2020.

Ton Anbeek, Accell CEO, predicts that the demand for bikes will remain strong even after the pandemic has passed. He said, "Demand for bicycles is looking very healthy for the coming five to ten years. This is due to the electrification of bicycles, European governments’ investments in cycling infrastructure - given an additional boost by the European Green Deal - and thirdly, an increase in government subsidies and tax incentives for the purchase and use of (electric) bikes. In a strange twist of fate, in 2020 a health crisis had the unintended side effect of boosting this long-term trend driving the growing popularity of bicycles and cycling."

More info, here.



Dorel Sports Hits $1 Billion in Sales with 15% Growth


Dorel Sports, the parent company of GT, Cannondale, Fabric and more, recorded revenue of $1.04 billion for the year, up $135.8 million, or 14.9%, from $909 million last year. Despite a rocky winter that saw it on the verge of going private before shareholders voted against it at the 11th hour, Dorel also finished the year strong with fourth quarter revenue increasing to $265.3 million, an increase of $32.2 million, or 13.8%, from last year.

Dorel Sports says its profits were affected by, "product mix, limited container and component availability, higher container costs and the inability to fill all orders" but despite this its operating profit for the year nearly doubled to $52.3 million.

Martin Schwartz, Dorel President & CEO, said: "Strong demand for Dorel Sports product offering continued throughout the quarter with supply chain constraints being a significant limitation on our performance... Results for the fourth quarter include US$7.5 million of costs incurred in connection with the Company’s privatization process that was terminated by the mutual agreement of Dorel and the buyer group in February. Its rejection by a majority of our independent shareholders sent a clear message of their belief in the long-term potential for the Company as a public entity. As a management team, we are committed to rewarding our shareholders for their confidence in Dorel."

More info, here.



MIPS Strong Final Quarter Driven by Bicycle Helmet Sales.


Net sales for MIPS increased by 36% to SEK 365m, including a growth of 60% in Q4 alone. In a year MIPS describes as "strong but strange", it has ended the year with its rotational protection system installed in 7.2 million helmets, across 729 helmet models (up from 538 last year). Referring to bicycle helmets specifically, Max Strandwitz, President and CEO, said, "Normally our sales in the fourth quarter are mainly solutions for bicycle helmets. This was even more apparent this year, as the strong development in the Sport category was driven by high demand for bicycle helmets... The inventory levels in retail are low. This means that the current production is aimed at restoring stock levels and building up the stock for the coming season. As demand has exceeded our customers' manufacturing capacity for helmets, we expect to see continued high manufacturing volume coming quarters. Despite a challenging environment, we have continued to broaden our customer base with 11% during the year and have now 107 customers in the Sport category in total."

More info, here.



Schwalbe Sales up 7%


2020 was also a good year for tire giant Schwalbe who recorded a 7% increase in sales up to €225 million. Apparently, Schwalbe’s e-bike tire the Marathon E-Plus, as well as trekking and MTB models were the biggest drivers of this growth. This year, Schwalbe also invested €20 million in a new company headquarters in Reichshof and made its most popular model, the Marathon E-Plus, its first Fair Trade tyre.

Frank Bohle, executive partner of Schwalbe, said: "The year 2020 brought us an emotional roller-coaster in all areas of life. Luckily, temporary closures of bicycle retail stores did not result in long-term sales collapses in our industry. On the contrary, reopening after the lockdown resulted in a jump in demand for bikes and bike parts never seen before. The bicycling boom had been going on for years, but the Corona pandemic acted as a powerful catalyst, as cycling allows people to commute without worrying so much about the virus. Almost all bike segments experienced benefits – most of all e-bikes, but also gravel bikes, mountain bikes and formerly niche products such as cargo bikes."

Posted In:
Industry News



195 Comments

  • 439 9
 Followed closely bye. “Due to financial hardships we have increased our prices 8-12%”
  • 211 3
 ...."and we had to lay-off 15% of our workforce."
  • 100 6
 Exactly what I was thinking, I'm no financial guru hence my bike costs easily 3k more than my car. But, with large increases in demand and subsequent increases in profit why are the prices being jacked up? Okay sure shipping is more expensive, but even after that they are still making more money than before covid. Seems like the companies that are raising prices are just trying to capitalize on the boom.
  • 115 0
 and thank you for your order. We expect to fill it in the next 6-24 months.
  • 82 3
 @mtbforlife4: If you have more sales than you do bikes, jack up the price until you have the same number of sales as you do bikes. You just made a chunk more money and the people you priced out weren't getting a bike anyway. I hope the various brands benefiting from this happy time are putting at least some of the extra revenue to one side for when the party stops. No doubt the boom will finish just as suddenly as it began.
  • 3 1
 @mtbforlife4: For reasons.
  • 16 4
 @mtbforlife4: most of thisese figures are revenue increases, not profit increases.. and even those that are profit increases basically tell nothing, because its not clear where the base was for 2019.. having said that, im sure brands wont miss a chance to separate you from your moneyz..
  • 33 5
 Increased profit volume does not equal increased margins. Container costs are up anywhere from 25-100% over what they were in the prior 12 months, raw material costs are also up 10-25% depending on the material. Companies are simply trying to realign their margins with increasing costs. Are they probably benefiting some in the process yes, but that is expected when the market demand is there.
  • 15 6
 @mtbforlife4: Shipping has more than doubled in cost and that is the #1 expense for most brands, tariffs are still an issue, raw materials have skyrocketed, labor prices are up, and who knows about currency exchange issues. It all adds up to a lot more than most folks realize.
  • 5 8
 @mtbforlife4: They are making more money due to the volume of sales, the profit per unit is still the same.
  • 3 0
 @giantkeeper: I was googling around daydreaming about fancy parts I will never be able to afford and saw a part that was delayed for at least 40+ weeks. I think it was an XTR derailleur or something.
  • 59 6
 Not to be a party pooper but both can be true. Sales can be good while profit drops due to increased costs.
  • 10 1
 @brianpark: True, but most of these cases are claiming operating profit growth to match or exceed that of revenue growth. Would indicate to me they have disproportionally improved operational efficiency or held back expenditure out of caution. Both smart moves, but not great for us waiting for parts.
  • 3 1
 @mtbforlife4: Simply supply and demand. If the supply increases or demand decreases dramatically, then maybe prices will lower, but highly unlikely.
  • 1 0
 Right!
  • 1 0
 @mtbforlife4: Unfortunately because they can.
  • 3 0
 what they said
  • 1 0
 The increase in material costs are likely temporary as fiscal stimulus has lead people to believe there will be inflation in commodities. Companies are paying the higher prices for the materials now and think they'll be able to pass the cost on after having record sales last year, but if they can't pass the price on to Joe Sixpack when he has no job or had to take a pay cut, the companies will be margin squeezed and the price of commodities will eventually go back down and should see a lower price of the end product to generate sales, hopefully...
  • 2 1
 @noplacelikeloam: Increased volume should in most cases increase efficiency so that would increase op rev more than gross rev.

Some of their costs are likely fixed, so as volume goes up so does op profit, so in that way they would be making more per bike.
  • 3 0
 To all the people saying this means nothing in effect, that costs are soaring, etc., then why are the quoted execs so happy about it? If it's as you say they'd be neutral.
  • 1 0
 @noapathy: COVID bubble! Pull-in demand.
  • 5 0
 @rtclark: compared to a year ago my company is currently paying ~24% for a metric ton of aluminum ingot and ~120% more to get a container from China to LA. We will only be increasing the prices of our products 8% to offset some lost margin.
  • 2 0
 @fabwizard: you're assuming the supply chain can handle the growth. That is clearly not the case and investments will need to be made to either increase capacity of existing producers or add new ones. At some time in the future cost per widget may be lower but just assuming that since more of something is being made it becomes cheaper is flawed.
  • 1 0
 "Although we are consolidating models to be based off fewer and fewer frames, the unit price will increase despite this scalability."
  • 4 4
 its not hard to sell something for £100m if its work £500m, if costs go up then prices go up, stop being so butthurt by this fact, companies have a duty to investors shareholders and bosses to make a profit, you cant fault them for that. i'm sure you don't work for free so stop giving others a hard time for wanting to make a living
  • 6 0
 @brianpark: Dorel and Accell note “huge profit increase” and “nearly double the profit” so those two at least, seem to be winning on both sides.
  • 1 0
 @noapathy: because...science
  • 2 0
 @kleinschuster: that means one of two things

The cost of the raw materials is a small fraction of the cost to produce the product

Or they feel that if they raise it more it may have a negative effect on future sales

Or they are so rich that they don't need to make more money
  • 6 1
 Right. Why are Shimano and Fox not listing profits? But then Accell who sells bikes (as well as parts) show their full numbers, including profits up 20x from 2019. And yet all these other bike companies are whining and jacking prices up 10%? I'm going to call a bit of BS. I wonder if some of these companies are getting covid support that is offsetting some of these increased costs and they are all laughing to the bank.
  • 6 0
 @brianpark: In the examples you provided NOBODY evidenced a drop in profits. To the contrary, Accell recorded profits up 20 times, and Dorels profits doubled. Fox and Shimano declined to post their profits - so can't say to much - except I suspect they are up as it sounds like everyone is happy with the numbers; so maybe they don't want them posted as it would piss everyone off when they see them jack up prices (blaming covid...). How are you trying to defend them if you can't provide any evidence of dropping bottom-line profit?
  • 5 1
 @trillot: Many of the expenses hidden within the quoted profits were likely negotiated long before Covid dropped. Now they'll be placing orders (spending from this revenue) at increased prices, possibly also for greater quantities if they are confident enough the boom will continue, and will have to expand capacity to produce. That all takes more money. There's always a lag. I'm not saying this explains away all of it, but I'm sure that when they started negotiating prices for their next orders they realized they'd need to raise the prices to maintain acceptable margins. I don't expect the numbers next year to be quite as drastic.

Also, given the high demand, they probably sold most of their stock at full price rather than having to clearance stuff out at the end of the season. I can't say how much this applies to the producer vs. distributor/retailer, but could also be a factor in some of these numbers.
  • 6 0
 @brianpark: Also, on a slightly deeper analysis of the numbers in the links provided, we see Shimano's sales were up 18.6%, but cost of goods only 18.2%. Now any creative accountant can hide those profits - by cranking up "general and administration" (can you say - yeah - bonuses for all management) or "amortization of purchased intangibles", as it appears they have, then presto - profits haven't changed significantly... Same thing on review of Fox's. Nobody is bleeding over there. Nothing to justify increased prices - other than supply and demand - also known as - because they can and it will pad their bottom line.
  • 1 1
 @mtbforlife4: because more people buy bikes than the companies are able to produce. Who wouldn't up the prices in a situation like that. Of course they are capitalizing on the boom. Just like everybody else ever has and ever will.
  • 1 0
 @kleinschuster: can anyone explain why container costs have increased? I mean, there are only a few no jobs where one is more isolated than on a ship.
  • 1 0
 @sriracha: Nah, that only happens in the states mate.
  • 4 1
 @daweil:
people: rip off! price increase of 8%
same people: 50-80% price increase on my old used bike, totally no rip off
  • 2 0
 @mitochris: I ordered a prefab sauna module, that was delivered in a shipping container. The seller explained, that global shipping is all messed up with containers stuck in wrong ports (lingering effects of 2020 early lockdowns), which means that containers are scarce in those ports, where they are most needed, since container ships cant get the useless empty ones back to exporting destinations from whatever ports said containers were stuck for almost a year. Something like that. Just shows how vulnerable global shipping and supply chains are
  • 2 0
 @mtbforlife4: heavens. forbid.

it's almost like the most basic principle of economics, supply and demand, has nothing to do with your opinions about a businesse's moral obligations to altruism!?

No different than a booming real estate market. If I have 30 bids on my house, I am taking the highest one with the least amount of terms. $200k over asking, all cash, no contigencies...or, $50k under asking and 3 months rent back!? gee.....
  • 1 0
 quite right what you wrote, I fully agree, but we must remember that they sell because we buy Wink
  • 1 0
 @pk71: or is it you buy because they sell? consumerism is not to be discounted in 2021! lol
  • 1 0
 @trillot: Shimano sort of are if you do some digging.

Reporting up to the end of December 2020
Sales are up 4%, revenue up 18% in the bicycle division. Profit up 10M yen on 2019 which is a 22% increase

www.shimano.com/en/ir/library/cms/contents/Summary%20of%20Financial%20Results%20FY2020-Q4.pdf
  • 4 0
 @mtbforlife4: increase in demand + reduction of supply = increase in price
  • 1 0
 @mitochris: I'm not directly involved with logistics but from what I've been told from our logistics guys there are 3 reasons. One is that there is global shortage of actual shipping containers. Two is that due to the shut downs that occurred in China and the unbalanced trade the US has with China there were or have been an excess number containers in the US and not in China, aka we don't make enough stuff that ships to China to return the containers back in a reasonable amount of time which left excess here and deficit there. Third is basic supply and demand due to the previous factors. The shipping companies can simply just charge more and most companies need to eat the cost because in the end the increased cost is cheaper than not having products to sell.
  • 1 0
 the question is will we see the decrease of prices after covid? I higly doubt that. two reasons: a) why to decrease if market demand is stil high with raised prices b) we have seen the increase in prices among last 2-3 years around 5/10% per year so prices would raise anyway
  • 1 4
 Supply & Demand:
Bike Company - "We supplied all the bikes we could"
Employees - " We demand to be paid"
Bike Company - Why?"
Employees - "You made record profits"
BIke Company - "You're fired. We bought more bikes to sell instead. Stakeholders are pumped.
Let's send out a memo about the profits part!"
  • 1 0
 @mtbforlife4: Just because sales are up doesn't mean profits are up because FC and VC costs can also rise independently and more, or less, than profit margins.

Everyone is assuming increased sales = increased profits, which is not always true.
  • 1 0
 @trillot: if a company sold 1 million dollars in bikes and made one dollar profit
Next year they sell 2 million dollars in bikes and made 20 dollars profit then by your example they made 20 times the profit

You are comparing apples and oranges
  • 2 0
 @imnotdanny: oh man, I broke my XTR 12s derailleur a couple weeks ago, such a pain to find a new one! Did find it in Germany tho, but no way to find it in France, at any price.
  • 3 1
 @brianpark: People would just rather bitch than read what is right in front of them. Dorel services the breadth of market, from cheap-ass mass store offerings with to the highest premium carbon steezy machines... and they make 5% blended profit at the end of it all.

Let's simplify the math: for every $100 sold, $5 retained as profit. Without reading financials, assume 20% direct labor cost as a manufacturing standard, leaving $75 as the cost of the bike in parts, packaging, distribution, etc. If those costs go up 10%, that's $7.50 added cost and now -$2.50 profit and Dorel will be out of business in due course. Or they raise prices, reduce direct costs (labor, bonuses, coffee machines, etc) and risk being crucified on social media by the mighty masses of the ill-informed.

(for comparison, those big global tech brands that sell us as the product make 15-30%, so this is far from robbery on part of Dorel).
  • 1 0
 @kleinschuster: Thanks. Really interesting. It probably also explains how random stock supply is. 2 weeks ago, I couldn't order a Shimano chain in 4 different online stores, while yesterday all had them again.
  • 3 0
 @cuban-b-can-blow-me: do you have examples of component of bike companies permanently reducing labor count as a result of COVID? I assume many had small furloughs to deal with forced shut downs. But doubtful any have actually reduced their staffing. Just because some industries were affected in a negative way doesn't mean all were. Plenty of companies and industries have added more employees as are result of the past 12 months events. Our business has increased staffing by 15% over the last 12 months to deal with increased demand for our products.
  • 3 0
 @trillot: Because they are privately owned and are not obligated to advertise their financial performance to the public and competitors.

To your second question, why wonder? this info is publicly available and yes, Dorel did receive support (but we do not know how much, it is likely outlined in their statements as a revenue source). apps.cra-arc.gc.ca/ebci/hacc/cews/srch/pub/bscSrch


These companies had a year of stellar sales on inventory that had been produced, mostly, under lower cost of supplies. That was a one time phenomenon, supply costs have more than caught up so if bike companies sell at the same price as last year with these higher input costs they will make less or negative profits in 2021 at those prices. If you think this is wrong, power to you, but be mad at the capitalist system, these company managers are just doing their job and keeping the operation viable while returning modest profits to owners.
  • 2 0
 @giantkeeper: kind like crowdfunding their way into building our new bikes... Pay up suckers !
  • 2 0
 pay for a container in storage for 45 days and get back to me
  • 1 1
 Any one able to pull up how much of a bonus the CEO of Dorel received for reaching record sales numbers?
  • 1 0
 Yep, it’s amazing what it does for your annual turnover when every year you take a little more and give a little less. I can’t wait for 7k NX builds.
  • 1 0
 It’s called right sizing and profitable growth duh. As bike company private owner, private equity firm or shareholder you need to grow your returns/profit. Best way to do this is either growing revenue or reducing cost. Hike prices and get rid of employees who don’t bring value to your business. I’m all for lay off if it’s in best interest of the firm I work for, if my job needs to go and best for company so be it. We all need to do best for firms we work at no matter personal or social cost.
  • 3 0
 @cuban-b-can-blow-me: you should check out this new tool, it’s called Google, amazingly good at finding information.

Sorry, couldn’t resist the sarcasm.

Schwartz is paid roughly 800k base salary and 500 as a bonus for 2020, down 30% from prior year. Owns personal holdings of $18M in stock as well. Compared to other companies the exec compensation is below average.
  • 3 0
 @noapathy:

Honestly, mostly comes down to profit margins and basic economics. Demand going up seems great for bike companies, but if the entire industry experiences the same demand, they'll see overall costs go up too.

If supplier A used to charge $12 for a part, and wants to change the price to $15 for that part, a bike company could go shop around at other suppliers. Now though, demand is so high at *every* supplier, that there just isn't the same option to shop around like you used to. If you don't buy the parts from your supplier, it might take you another year or two before you can find somebody that makes it at the price you want, and by that time you've missed out on an entire year of sales.

So you mostly just have to eat that cost. And when you're buying hundreds of thousands of those parts every year, a $3 rise in parts costs can easily suddenly be half a million dollars of extra expenses.

And those expenses are rising from every direction. Inflation is hitting the USD - which means any company that works with any overseas suppliers (pretty much every company) is seeing the purchasing power of their dollar reduced. Shipping costs are increasing enormously.

The bike industry isn't operating on great margins. Very few people are getting rich by making and selling bike parts. It isn't like the tech industry where costs are pennies on the dollar. Raising prices sucks for bike companies as much as it does for the consumer, because ultimately it reduces demand for a product and it means they sell less of that product. Price increases are weighed very carefully, and nobody really walks away happy.

And as companies start running into parts shortages, it gets even harder. Because if your suppliers literally can't keep up with the demand you're facing from consumers, you start running into situations where customer service can suffer, you're leaving money on the table because you can't provide product, and there are a whole host of issues that can arise from that.

So yeah, business is really good for the bike industry, and well deserved to be honest, bikes are awesome these days, components are dialed, and the state of bikes is really advanced for the budgets most are working with. And to be clear, this isn't is "woe is the bike industry, feel sorry for them because they're seeing high demand" post - just a "things might be more complex than just plain greed."
  • 2 0
 @Fix-the-Spade: " hope the various brands benefiting from this happy time are putting at least some of the extra revenue to one side for when the party stops."

LOL, you don't business much, do you? No business in their right mind would keep cash on hand simply to be taxed.
  • 2 2
 @scott-townes: Not true. Lots of companies keep a lot of cash. A ton of the biggest companies have a ton of cash. The top companies with the most cash is Microsoft, Apple, Google, Amazon, Berkshire Hathaway etc.
  • 1 2
 @tacklingdummy: Oh I didn't know you had an inside line on all of their finances LOL
  • 2 0
 @scott-townes: at least in North America you are not taxed on cash on hand unless it makes interest.
  • 1 0
 @scott-townes: They are public companies, so they have to show their financials publicly. A simple search will give you that information.
  • 1 0
 @scott-townes: you have no clue what you’re talking about.
  • 1 1
 @pourquois-pas: LOL ask the airlines, bud
  • 3 1
 @pourquois-pas :
American Airlines earns $7.6B/year in profit
During boom times it upped fees & made service worse
Instead of saving cash for rainy day it enriched execs with $15B in stock buybacks
Now rainy day comes & airlines want a $50B bailout

Airlines spent 96% of their free cash flow in the last decade on stock buybacks, enriching execs. Now they get a bailout.

What would those in charge say if people seeking gov't assistance spent 96% of income on lattes, avocado toast and the new iPhone

Quotes from @danpriceseattle on Twitter, but all come with direct links to what he quotes (for the haters who say I'm cherry picking)
  • 4 0
 @cuban-b-can-blow-me: Your point? I countered an incorrect statement by @scott-townes that "no business in their right mind would keep cash on hand."

The AA example proves they should have kept more cash on hand - they didn't, nearly folded because of it, and are now scrambling to ensure liquidity. Proves the point that responsible businesses manage cash very, very closely.
  • 2 1
 @pourquois-pas: Just putting that out there. Not a ton of people understand the horrible finances of corporations & how many times they are bailed out by their congressional puppets.

Wasn't a viewpoint. Just stats.
  • 2 1
 @cuban-b-can-blow-me: I mostly agree with you, except when you imply that those on government assistance are not spending 96% of their "income" on lattes, avocado toast, and the new iPhone. I'm pretty sure that's exactly what they're doing.

Well, I better get back to work. Wouldn't want them to go without their Starbucks.
  • 75 6
 Wait, wait. You're telling me that bike companies are experiencing "a huge increase in net profit" but also reluctantly increasing prices due to unavoidable "impacts of the COVID-19 pandemic"?

I'm starting to think that they might not be entirely transparent in their business operations and motivations.

Shocking.
  • 20 4
 If there is a shortage, the ONLY way to remedy that shortage is to increase prices. Even during a pandemic. Even during what some people would call "scalping". If prices spike on a scarce good, the rise in profits will draw tons more suppliers into that market, increasing supply until prices come back down. If prices don't rise, firms doing other (but related) things can't afford to enter the market, and supply won't grow.
  • 26 3
 Look at the figures from Dorel. Revenue of $1.04Bn, operating profit of $52M. That's a 5% profit margin. The cost of supply and distribution HAS increased massively since the start of 2020. If sticker prices didn't go up it wouldn't take long for that 5% margin to disappear, would it?
  • 4 2
 It turns out that the head of the PR department redlined the release that said yep we're greedy and in these tough times, we found the perfect opportunity to raise the price on you.
  • 9 1
 The issue is that although shipping/raw material costs have went through the roof and means reduced margins at the moment for manufacturers and is driving price increases, post-covid cost of shipping/raw materials will likely drop back down to pre-covid prices after everything calms down again. But will the bike manufacturers reduce their price consequently and pass the savings onto us? Not in a million years.

I hope after this boom in the bike industry has burst, customers remember the brands that jacked their prices up and didn't bother to reduce them afterwards, and take their business elsewhere.
  • 2 0
 @wingguy: And in 2019 their net profit was under 3%. Doubling your profit from 2.5 to 5 percent is going from barely scraping by to doing just about ok. Any increase in costs is going to cause problems and there have been dozens of different increases in costs over the last 12 months and no decreases.
  • 1 1
 @AD4M: can you name any industries or companies that have done as you request? Just wondering if there is an actual example of a pricing increase that has gone into place which consumers happily pay for that has then been reduced when company is paying less for the product.
  • 47 0
 Shop inventory levels down 100%
  • 4 0
 Yup...the companies get to plan for consistent demand and good margins, while maintaining current production and most importantly for them (according to this article) spending little on increased capacity. Only the blurb from Fox mentions increased capacity and that's just from Taiwan. They are happy to do brisk business. I doubt they much care about availability of parts to the retail consumer.

I just want companies to invest in manufacturing within their biggest markets.
  • 1 2
 Sharp rise in profits when your product is in high demand allows for you to increase production- build a new plant, order raw materials in larger quantities, pay for faster shipping, etc.
  • 3 0
 @hamncheez: Not arguing your point, but what if you think this is really just a "pandemic bubble"? If its a bubble of sorts, and you've increased production capacity (which can be hella expensive to use a technical term), you could very easily end up having too much capacity/stock on hand and nothing to do with it in 12 months. Just bring it up as that was kinda the message I read from component manufacturers - we don't think this is a long term demand spike, so we're not increasing production capacity even for short term gains.
  • 1 0
 @jackalope: these are good points. I'm snickering somewhat at "long term demand spike", as I doubt many companies think further out than the next quarter, or next 12 months. They have never had to contemplate a long term anything, so how could they start now? The Accell and Schwalbe leadership both allude to long-term growth patterns that were kicked into overdrive by C19; the health crisis was just incidental.

They are treating it like a pandemic bubble, and judging from human behavior over the past year, they will be content to milk it while its good, and plan and build very little for a future non-bubble state.

I do get that components, shipping, overhead costs more at present so their margins are not proportional to revenue increases.
  • 1 0
 @jackalope: Yes, because bike purchases are a one time thing. Parts never break, weak minded individuals never get caught up in the latest trends/standards, nor is anyone entering the cycling sport ever addicted to it....
  • 2 0
 @twozerosix: lol at my "long term demand spike" comment! Yeah, that statement is incongruous, but I was trying to say they didnt see the recent increase in demand as a long term trend - just a temporary bump. I hope this ultimately ends up growing the market and making better products more affordable (however unlikely)
  • 1 1
 @hamncheez: ha! Yeah I think theres some truth to your tongue & cheek response, but I wonder if something like 10% of "COVID newbies" will keep it up whereas the rest will put their bikes in the darkest corners of their storage sheds to rot. So yes, there will be a small long term bump, but one that can easily be accommodated with current production capacity. Again, I hope I'm wrong, but based on the the initial influx of new riders around
here and then the subsequent precipitous drop off 2 months later, it may not mean much difference long term.
  • 2 0
 I was just talking to the owner of EVIL bikes and he said even he can't get one of his own frames. Them jes' ain't 'vailable.
  • 1 0
 Nah, our inventory is up like 300% because we can't trust the suppliers to hold stuff for our normal booking order ship dates so we took all 3 ship dates ASAP.
  • 1 0
 @rosemarywheel: Did he say why specifically? Thx.
  • 2 0
 @mybaben: Nope, sorry. Just that they are not available. I can see if I can poke around a bit more next time I am over there.
  • 1 0
 @rosemarywheel: Thanks! Cheers.
  • 36 1
 The only cost that hasn't gone up is my labor. What a nice guy I am, working for the same wage while everyone else keeps increasing their prices
  • 25 0
 I put a deposit down for a fat bike for this winter back in August. Delivery was supposed to be mid October. Then it became late November. Then mid December. Then late January. Then I got notice that the price of the yet to arrive bike would be $100 more because shipping costs went up. Oh and delivery would be late February.

I don't blame the bike company at all for shipping delays but I do question raising the price for those who already paid deposits, especially given that the fat bikes weren't even arriving in time to use this winter. In any case it left a bitter taste so I pulled my deposit.
  • 44 0
 Retroactively raising the price on you is pretty fucking skeevy considering you ordered it for a set price in August.
  • 28 0
 Good for you. That's a b.s. maneuver.
  • 6 0
 That must have been difficult to remove the deposit, but it was a poor business decision to attempt to pass along the extra $100. Sometimes companies are short-sighted, and they shouldn't be rewarded accordingly.
  • 1 0
 @kwl1 I would check with whatever your local consumer rights organisation is. In the UK placing a deposit is like signing a contract, and the details of the order are then fixed. The shop cannot demand that you pay more than was agreed, or decline to sell you the goods if you refuse if they've already taken your money under the previous agreement.

In some ways it is unfair on the shops who will hav to pay more for the bike when it arrives - but they can generally balance out what they lose on existing forward orders by selling inventory they already paid for at the new higher price.
  • 4 0
 my buddy works at a shop and specialized said "we know your customers ordered these bikes last year for X, but now we need X+500 and it's gonna be another 6 months, thanks!!" .. and then just left the bike shops to deal with it..
  • 3 1
 @laxguy: To be fair this is how Shimano has always operated and left all manufacturers to deal with it.
  • 1 0
 @laxguy: As mentioned above, also very short sighted of Specialized. They want long term customer retention and know the bike frenzy won't always last.
  • 18 1
 Sort of the same logic that terrorism was good for the airline industry. Remember when fees got tacked onto everything and never went away? Tariffs keep coming and we keep paying for it. Meanwhile prices keep inflating. Your wages aren't going up 10 to 20% are they? I doubt it.
  • 17 1
 I expect Schwalbe stock to deflate if things get rocky.
  • 17 6
 People don't seem to understand the difference between revenue and profits relating to costs and prices...

If the base cost of products go up (and they are by 8-30% across the board), they will need to offset that somehow either by reducing costs in other areas (if they could have they would have already), or increase prices.

It doesn't matter if revenue grows if their margin erodes, as at the end of the day its a business, and if the ROI dips below normal profits, companies will slowly go under as why would anyone invest their cash into a business that only generates half the profits of any other investment?
  • 10 2
 Not fun for the consumer, but what you write makes sense ... if it were true. It doesn't seem to be what's actually happening. For example, see these numbers from the article above, about Dorel Sports:

- Revenue for the year increased 14.9% to $1.04 billion.
- Operating profit *nearly doubled* to $52.3 million.

Revenue goes up, Yay.
Profits go up 3 times as much, Yay!
Quick, raise the prices!!
  • 1 2
 @mi-bike: both are related to the increase in volume and or the higher selling price. The actual profit per bike does not have to change.
  • 3 1
 @mi-bike: I have to say, if you are making $52m profit on 1B in sales, (i.e.5%), you're running a pretty terrible ship. This is why they were almost taken over, and why they can't compete when prices drop back to normal.
  • 3 0
 Right, basic finance. Funny we don't see profits listed for Fox. But when you look at Accell Group, the parent company of Ghost, Haibike and Lapierre, they had a 10.6% increase in its bicycle sales and a 36.2% increase in its parts and accessories sales. Total sales of €1,296,000, up 16.7% from 2019. Net profit up from 2.8milllion euro in 2019 up to 64 million euro in 2020. Oh wait - their profit increased 20 times. So, what were you saying about eroding profits?????
  • 2 0
 Ah yes, the glory of a perfect system.
  • 9 0
 Rockshox Lyrik lead time is now 400 days.
Other things like bikes are not expected to be available until mid 2022...
It's not too fun having to tell customers that you can't sell them a bike or a bike part because "pandemic reasons".
Pretty much down to basic servicing of bikes now at the shop I work in and even that is a bit tricky now if bikes need parts because the distros can't get stock either.
At least there are 26" inner tubes now.
Bicycle Industry please get your factories working.
Sincerly, a frustrated bicycle mechanic.
  • 1 0
 whats even worse is saying "yeah that bikes not coming until 2022... and we need another $500 for it, thanks! dont want it? we'll give it to someone else that does!"
  • 4 0
 As a shop, now is the time to buy all the second hand bikes you can find in the area. There is going to be a lot of people walking through the door in April, may, june ready to lay their money down. You can either say, "sorry it is going to be next year" or "sorry, a new bike is going to be next year but we have a range of freshly serviced and approved second hand bikes over here, I am sure we can find something to work for you."

Second hand bike prices are high right now but they are only going to get higher over the next year.
  • 11 1
 I can't wait for the MTB bubble to implode on itself. Things need to go back to the pre-COVID days.
  • 2 0
 Probably won't happen for years, if it does at all.
  • 3 0
 @HB208:

You’re probably right. But we can all dream about the good old days.
  • 17 0
 I will ride my old bike until i can BUY THE DIP
  • 8 0
 @SickEdit:

HODL!!11!!!1
  • 2 0
 THEY GONE.
  • 7 0
 Despite the chorus of folks supporting higher MTB prices, it still doesn't wash IMO. Quote from Gear Patrol regarding why good bikes are expensive:

"Cocalis [CEO Pivot bikes] says that it’s not fair to compare cars and bicycles — or even motorcycles and bicycles — because the bike world innovates on a pace that’s a lot closer to that of iPhones than that of motorized transportation."

I was ready to be convinced, but his argument ran into a ditch. Bikes do not resemble the complexity of an iPhone.

Bike companies are not charities, and they have and will continue to charge what the market will bear. And it's a hefty price, now that we have extra dollars from being "Covid-grounded" and cheap credit (at least in North American markets) is easily accessible.

The silver lining is more folks are riding bikes. And the Big 2 components producers (Shimano and SRAM) still need some competition so hopefully a more lucrative bike industry will introduce new players.
  • 6 0
 LMFAO! He said what?!!!! Well pivot must be like a freaking overpriced flip phone painted with some shitty pastel flat color! What a joke.
  • 3 0
 @JosephDunbar:

For others who might want to see the article, here it is. I had been searching for why bikes are expensive. I think Chris Cocalis made it more obvious–that in fact yes, bikes are too expensive. lol

www.gearpatrol.com/outdoors/a691720/bike-price
  • 3 1
 Don't forget, the iPhone is made by people who are basically slaves and they still have to sell them at a loss and make the profit on apps and subscriptions, the £1000 price of an iPhone shouldn't be compared to other industries as some kind of benchmark for what can be done. It should cost a lot more than that.
  • 7 0
 Yep, the industry is raising prices and screaming COVID-19 as a justification. This too will pass and eBay, facebooking marketplace, pink bike buy sell will be like Christmas time and picking cherrys. So remember this fact SRAM, SCOTT, SPECIALIZED etc. KARMA can be a bitch. BtW, still waiting on my Reverb dropper SRAM. Been 19 weeks now
  • 6 0
 All I can say is this: buckle up if you haven't yet. This is going to be a wild ride for at least the next two years one way or another.
  • 4 0
 The COVID restrictions will ease, the bike industry will flatline. I worked at shops in the mid-1990s. The crash when the mountain bike market got over saturated. Half the shops in the US closed.

Hopefully, the bike industry does a better job of anticipating/coping with the coming bust.

They’ve f**ked the boom up this time pretty well.
  • 4 0
 Well as expected. Shipping cost just cant be justification for 10 percent price increases on 5000whatevercurrency-bikes. How would bread and butter bikes for a tenth of the price be profitable to sell otherwise? Please Pinkbike, on your podcasts you discuss your independence, but please show this by calling out a lack of transparency from the business when they announce price increases. However, having written this, I do believe it is fair for the bike business as a whole(the whole value chain) to increase prices, due to increased demand since that is their job. My problem is the arguments they try to sell us. I am fine with the truth, if you tell it. If you hide it, I am not. /Rant over!

What would be interesting going forward is the amount of pegged up demand there is around. I for one will not buy or renew any of my 4 bikes this year. In a normal year I would probably renew one or two. My enduro bikes is entering its fourth season with heavy use for instance. Next year it might be due for a change. I do not believe I am alone. Therefore I do not believe that the demand will flatten of the next couple of years. As a consequence I reckon the prices will stay high for several years. Adding to this there is a bicycle mega trend going on in Europe(and other places too!) at the moment, where more and more people are encouraged to ride bikes instead of driving cars - this also affects the demand for bike parts. I would be very much interested to know more about the long term forecasting within the industry. If everybody thinks this will blow, securing their profits for the next years, we have an issue...

Pinkbike, Maybe you could cover even more the business side of things? It seems to gain a lot of interaction with your audience...
  • 8 1
 I'm betting Accell's increase in profit is all from Sam Pilgrim.
  • 2 0
 GME to the moon, Accell to the Sky!
  • 4 1
 The US Dollar is losing value as well due to inflation and the fact the US government is just printing money right now. The exchange rate just isn't as good as was in the past and the US dollar isn't going as far as a result. Along with other real factors like huge shipping cost increases, raw goods cost increases, labor cost increases. Sorry but its not a huge conspiracy - its a global economy with a lot of factors affecting everything in our economy. From housing, to home improvements, to bikes and motorcycles. I hate to say it but things are getting worse not better. Ibis and Santa Cruz are completely sold out of 2021 bikes and not taking orders - and we are barely into 2021. They haven't been able to take any new orders since October/November. We had to enter our entire 2022 bike order with SCB a month ago and thats all we will get for all of 2022. Bike shops across this country are facing the harsh reality that we may not be able to maintain inventory levels to keep their businesses viable. Lots of moving parts here worth considering.
  • 3 0
 Is it possible that demand for bikes will slump, a lot have been bought, in the US and UK covid restrictions will hopefully be lifted or reduced this year leaving people the option to do other things eg pub restaurants holidays. Then with supply cranked up and a lot of second hand bikes on sale will prices drop.
Am I being too optimistic in my hopes of getting another bike?
  • 3 0
 Nope. I was about to say the same thing. Second hand bikes are going to be great buys in a couple years when the market gets flooded with bikes from people that didn't like the hobby, regular sellers looking to upgrade, and newbies who got got hooked wanting to sell for a better bike. Same goes for second hand budget components
  • 5 2
 Who knew there was an army of Wall Street keyboard financial experts, I thought it was just restricted to engineers arguing about grain directions in alloys well done pink bike for opening my eyes to a world I didn’t know existed
  • 11 3
 Half the commenters are economists. Half are engineers. The third half are dentists.
  • 6 0
 Then again Wall Street financial experts have repeatedly proven themselves worth nothing "mumumu it's not our fault we couldn't predict the crisis", "mumumu why are redditors allowed to do the same shady shit as us ? Not fair booohoohoo" (...)
  • 1 0
 @zede: There was a time when one of the most successful investment bankers in the USA was literally a chimp with darts picking stocks. thenextweb.com/hardfork/2020/09/11/raven-thorogood-the-stock-market-chimp-that-smoked-wall-street-investing
  • 3 0
 So the 1 billion of fox prices comes from them ripping us off with their suspension prices: the 1600 eur 38, the 1000 eur reskined fox rhytm they call « marzocchi » and « budget » and everything else. I m a big fan, the suspension works really good, but these prices are off the charts. So while we stay at home, some of us making money, some of us being unemployed and barely putting food on the table, all these companies make profit from our inclination to « buy online to fight boredom » and make litteral mountains of money on our back. What a savage, predatory world we live in...
  • 6 4
 This must be REALLY good for the industry. Not awesome for most of us consumers who need/want parts. Mostly want. But this in turn mean that companies will have much bigger budgets to develop new and better bike and components. Obliviously theres a trade off for a bussiness boom like this but I think its really healthy for the sport.
  • 2 0
 ahhh... to be young and naive.. Smile
  • 4 1
 "We sold all our stale, poorly-designed junk to desperate consumers who had no other choices!!! Now we can start fresh without a warehouse of deadstock and charge more, too!!"
  • 2 0
 Bike manufacturers - " We are forced to raise prices because we made MORE profit last year than ever before " WTF ?
Sales have increased tremendously from previous years , except there is one very big down side to that .
Very few customers have actually taken delivery on the bike that they ordered . myself included .
  • 6 4
 So bumper profits but they are still putting the prices up. They clearly don’t care about the customer really, we are just a cash cow to extract as much money from as the can
  • 2 0
 why would anybody Down vote your post . Oh yeah , that would be what's called , Naiveté.
  • 3 1
 So.... global profits for most part is on the up, demand outways supply. Yet there have been “official “ statements from major brands about there price increases due to the COVID pandemic. Bike maths eh?!
  • 4 0
 I’ll bet they are stoked. The bike industry has finally transitioned to a post bicycle business model.
  • 4 0
 On behalf of the consumer: we really, really don’t like what we are seeing.
  • 1 0
 Shimano up 3%. Surely the story is why only 3%?
Accell figures, something not right. Revenue looks wrong

Good thing you guys are ace at bike stuff (which you are., really, I spend too long on this site), because this is saying “bike companies mostly made more money due to enhanced demand but supply issues and costs hindered some companies”
  • 4 0
 One limitation is how much more they can suddenly start manufacturing more product.
  • 3 2
 So sorry i'm late to the party...I know some of the people on here work in manufacturing and can understand what is going on behind the marketing releases...in my case we are seeing things outside our control that we have not seen before and this has caused soooo many "strategies to stay alive" that the dust is going to have to settle before any of us can say we made it through alive.
1. Employees just wont come back to work = costly new hires and training
2. Competitors have bought up all the raw materials = you are now waiting 3 to 4 months for a mill run of steel (Min $40k by the way)
3. Marketing forgot to stop selling things while your governor shut the doors on your plant = orders in, but no orders out...angry customers and 12 hours a day 7 days a week to try and catch up
4. No one is even close to 60% as effective working from home = mistakes, late work, missed deadlines...

Lets just all get on what ever 2017 bike you've got laying around and ride into the sunset...2024 we will all be complaining about something else...like gas prices
  • 1 0
 I don't know what's the situation at yours as it makes you so happy but around here the shops and services are fighting each other just to buy few spares like chains, brakes etc and it already looks like soon you will not be able to get them at shop, only with service
  • 1 0
 This boom only works for the bike industry as long as it can keep the demand high and the lack of availability potentially hits LBS in the long term as existing customers (who over a lifetime of a relationship with a shop will spend much more than a single bike purchase) are forced elsewhere.

I just tried to order a bike for my daughter from my LBS, I knew there would be a delay but when I was told the delivery time for the Trek bike was August 2022, I had to walk away and go for a direct sell bike. Those kind of delays arent just about demand, raw material price, COVID etc. Having a lead time of 14 months on a product like a bike is going to eventually hurt bike shops.

The current demand issue at LBS only drives more people to the internet which in the long term hurts brands than only sell through bike shops.
  • 1 0
 I don't see this lasting. People bought bikes because there has been nothing else to do. Some will stick with it but on the whole people will go back to what they did for entertainment pre-covid and the bike will gather dust in the shed. Even those that stick with it aren't likely to buy another bike for years. I think the drop off in casual interest coupled with across the board price rises will see a rapid decline in new product sales. However, this might spark a boom in second hand sales. I never buy new anyway so I'm not the target market but I am considerably less interested in new bikes when they are more expensive and with patchy availability.
  • 1 0
 Maybe take some of that revenue and perhaps boost domestic manufacturing...a bit at least? I know all the traditional arguments against domestic manufacturing but covid changes many things, obviously. Most notably, the pre-covid Asia-West supply chain is likely to be volatile for some years to come. Although I have some critical views of the consensus view of pandemic mitigation, it is the consensus and based on that, it's likely that going forward, western countries will lockdown and lock down early at the slightest indication of a new scary virus in Asia for years to come. Seems increasingly prudent to at least have some domestic manufacturing ability going forward which has the ability to scale up.
  • 1 0
 I don't buy this "everything is sold out until 2022" attitude. If any of this were true bike shops would be empty but they are not, all the shops around me have full floors of bikes and full racks of forks. I haven't come across one thing I couldn't get my hands on since this all started and I've spent a lot of money on bikes in 2020 and already too much in 2021. I would love to see a bike shortage, I have tons of bikes and then maybe I could have extra money.
  • 1 0
 Meanwhile shop margins are plummeting, and mechanics haven’t likely received a pay increase even though we’re all working longer hours and working harder than ever to keep the shops we work at functioning. To top it all off customers are circling to demanding and not understanding wait times and “needing parts”, pinning us against the internet retailers and vise versa. Consumers need to go back on vacations, or get into micro gardening or something else.
  • 1 0
 James S., So what is the primary issue right now? Is it a demand issue (huge), or a supply chain issue? And I mean an issue specific to supply chain, not a high demand causing low supply. That is a demand issue. Thanks!!
  • 9 9
 This is good for everyone. More riders, and more people riding, gets more people involved in their local community to cycling safer and more accessible. Also potentially gets more people involved with trail work and trail access. The only real downside is the current lack of inventory due to global demand, but that will eventually catch up. As far as pricing goes, literally everything in the world is going up in price right now due the shipping crisis and constraints on raw materials. Have you seen the price of building materials lately? Massive increases in prices, especially lumber.
  • 1 1
 preach
  • 5 1
 The closest thing I can compare this to is the US firearm market. A number of times supply ran dry due to panic buying and people were doom and gloom about the future. And every time new companies popped up and started producing like crazy, and the market as a whole grew. A rifle that cost $700 seven years ago could be bought for like $300 pre-pandemic/civil unrest bubble. I see no reason why a bunch of affordable bike companies can't pop up and start cranking out cool stuff. It won't be immediate, but it will happen.

I'm not here to talk gun politics one way or another, I'm just pointing out that that market faced similar circumstances a few years ago ad things only got better and cheaper in the long run. Short term, bare shelves and sad faces. Long term, I absolutely see this as a good thing for MTB.
  • 4 1
 @ClaytonMarkin: This is probably true. Although, it can take a while to catch up. You still cannot buy ammo for basically any caliber.
  • 2 1
 @ClaytonMarkin: Yeah, you should do it! Start a new bike company so in a few years, you can sell bikes for 1/2 the price they are going for now. Good model!
  • 2 0
 If Shimano actually had inventory of anything they might have seen much more growth. It's hard to get Shimano brake rotors on a normal year, let alone now.
  • 2 0
 Just in time. Is what covid has really killed. It’s left several industries scrambling to find parts or materials ....
  • 2 0
 Yup, something to that. JIT doesn't often have much slack built-in. Our company is inventory'ing the heck out of certain (expensive) components due to supply chain tie-ups well into 2022. We'd never do this 2 years ago.
  • 2 1
 Maybe the move is to ride the old bike (which is just fine), and invest the 10k into stock in a profitable company...or the 500 largest company index, or pay down the mortgage, or the loan on that van life rig.
  • 1 0
 When travel and entertainment opens up and weather turns in the autumn... know what's gonna happen to all those deposits that haven't received bikes yet? You may see the extra year of orders evaporate.
  • 1 0
 Accell Group $12.20 1yr ago. today ACCEL.AS is $40.00. nice profit but nothing like NIO. Electric vehicles were the igniter in this market.
  • 8 9
 Just a reminder to the PB echo-chamber which seems to be worse than ever these days. This is a revenue round up. Not a profit round up. Just because revenues are up doesn't mean profits are up 1:1. Costs went up on materials, parts, and freight big time in the last 12 months.
Maybe think about that before making your woke sweeping comments about bike companies which probably do more to better the sport than your sorry ass.
  • 7 0
 So much hostility!
Actually as per the article, in one example annual profits "nearly doubled to $52.3 million", where their revenues were up 14.9%...not a mathematician but I think that's more like 6:1.
  • 2 0
 Also what needs to be remembered is these are 2020 numbers, the companies sold a lot of inventory bought at 2019 prices in 2020 a lot faster than they expected to. Now they are selling inventory they don't have at 2020 and 2021 prices which are massively different. Just because they made good profit in 2020 doesn't mean a 2021 price rise due to increased costs isn't valid.
  • 2 0
 Covid has been the best thing that has ever happened for a lot of big companies.
  • 2 0
 Just read that droughts in Taiwan may accentuate computer chips shortage. Lets see if it fucks up fork production as well...
  • 3 0
 Fox CEO reportedly told analysts “ I’m rich bitch! “
  • 1 0
 Ebike margins are insane then - Accell also saw a huge increase in net profit, from €2.8 million in 2019 up to €64.8 million in 2020.
  • 2 0
 "Accell also saw a huge increase in net profit, from €2.8 million in 2019 up to €64.8 million in 2020."

Whoa.
  • 1 0
 Industry please supply us more bike and let us keep sellin' before bars open again
  • 2 0
 Pinkbike be trolling with this one
  • 1 0
 Buy local. There are still bikes and components that don’t have to ship overseas.
  • 1 1
 I don't get how these companies are SOLD OUT of stuff and are only seeing single digit increases.
  • 4 0
 Because in normal times you don't produce twice as many items as you expect to sell. Companies sold everything they made, and their entire back stock which is single digits.
  • 1 0
 Of course there is conspiracy.
  • 1 0
 Of course, they are McLovin' it.
  • 1 0
 Shimano sales up, shimano availability is down
  • 3 1
 they don't run factories that work at 20% capacity so when demand skyrockets there is no magic ability to up production by 5-6x it's not rocket science
  • 1 1
 Keep in mind the big component manufacturers are being forced to prioritize who gets the limited quantities of what is available. This usually means big customers like Giant, Merida, etc get the goods....the ones getting left out will be the local distributors in each country. If you think bike availability is shit right now, try getting spares this summer.
  • 2 2
 All of these company's turning a profit and yet prices are jumping 10-15%. Cool.
  • 1 0
 They should pay their sponsored riders more if profits are so high.
  • 1 0
 RIP proform and shopform. I'll always remember you both fondly...
  • 1 0
 Boycott MIPS, they are just a patent troll.
  • 1 0
 Because we ride bikes Smile
  • 1 1
 Here's hoping some of that goes to athletes and sponsorships
  • 4 0
 Fuck that. How about it goes to us in notice increases. I gotta eat as well.
  • 2 1
 Hey Dorel, fuck you!
  • 1 0
 Greed
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