In a letter shared to distributors and then leaked on social media, Santa Cruz have reported they will be increasing their prices by an average of 10% from April 2 due to the impacts of the COVID-19 pandemic.
Santa Cruz have confirmed the letter is genuine to Pinkbike but they are far from the only brand to raise prices in this unprecedented year. We've previously reported on similar statements from Commencal
as the impacts of the virus and global politics increase the cost of doing business for bike brands.
The letter highlights five key issues that affect Santa Cruz's pricing: Increased transportation costs
- The shipping industry is currently running at capacity and, with demand outstripping supply, prices are skyrocketing
for both sea and air freight, affecting a multitude of industriesIncreased component costs
- These same transport costs also affect the component companies that spec Santa Cruz's bikes, meaning the OE cost of the parts on a new Santa Cruz bike will be higher. Apparently, even packaging materials cost more due to the huge increase in online shopping.Exchange rates
- The NTD (New Taiwan Dollar) has increased in value against the US dollar. A year ago, $1 USD bought you $30 NTD, now it only equates to just over $28NTD.Tariffs
- Joe Biden may have replaced Donald Trump in the Oval Office but the former President's tariffs remain in place and continue to affect prices.Assembly Costs
- Santa Cruz has invested heavily to ensure their assembly plants exceed local guidelines for safety in the pandemic.
These issues are affecting the whole bike industry due to the overwhelming demand for bikes and, the letter suggests, they look set to continue for some time.