Orbea has announced a second round of price increases in response to the effects of the COVID-19 pandemic.
The Spanish brand announced an initial run of price increases on February 15 last year and it has now followed it up with another price update today. As with most brands currently involved in the production of bike
s and components, Orbea is battling against rising raw material prices, rising shipping costs and a stretched supply chain that makes it harder to do business efficiently.
What does this mean for Orbea's customers? We picked out the following examples from bikes released last year: the Rise Hydro H10 has risen from $7,299 at launch
, the Occam LT M10 from $6,299
and the lower-spec Occam LT H20 from $3,659 to $3,999. The rest of the price increases outside of these examples can be viewed on Orbea's website
The full reasoning for the price increases are below:
Press Release: Orbea
Since the onset of the pandemic the global economy has suffered continual impacts which have hit all sectors, including the bike industry. For the sake of transparency, we want to explain the reasons that underlie our decision to increase our prices, and the measures set in place to soften the impact of these increases.
-The prices of raw materials such as aluminum, steel, and carbon have been rising continuously for months, as have fuel prices.
-Transport costs have also risen disproportionately due to a shortage of containers, ships, and to congestion at ports.
-The bike industry, like many others, is suffering from intermittent or ongoing failures in the supply of components. This forces us to modify our specifications or seek similar alternatives, always striving to maintain quality.
At Orbea we have held out as long as possible before applying this update, but in the end we have been forced to raise our prices for this year.
“We are a company that is committed to our community of users and our stores. We are continuously monitoring market trends and have done everything that we could to avoid this price update, but there is no sign of the upward trend in costs being corrected" states Gonzalo García de Salazar, the company's Global Sales Manager.
Seeking to minimize the impact for dealers and users alike, at Orbea we have made a further effort to maintain our prices on those bikes already reserved by users and confirmed by their dealer in the Orbea system.
"This has been a difficult decision for Orbea, because it will have consequences for our stores and for the cycling community, who have trusted and continue to trust in our brand. We understand what this means"
The new prices will be available at orbea.com
We doubt that Orbea will be the only brand increasing their prices this year as the entire industry faces the same challenges. We'll update you with more announcements from any brands that make them.