us bicycle tariffs(no politics) impact on prices

Discuss light weight issues concerning road bikes & parts.
TobinHatesYou
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by TobinHatesYou

Greenlawnracing wrote:
Wed Sep 19, 2018 2:40 pm

So that could basically make a premium Trek (made in USA) or an Allied a "bargain" since the delta between a tarrif'd mid line bike and one of these would be greatly reduced?
No.

A rising tide lifts all boats. Because Trek’s mainline bikes are made in China and represent the majority of its revenue, the tariffs will bite into their margins without associated price increases. Because the low-end bikes will get more expensive, the entire line will scale off of the new pricepoints. It’s all about maintaining margins/net profit.

And as for Allied, you think they’re going to sell their boutique offering at the same prices they are now? Nope. Since their competition is getting more expensive and they offer a “Made in USA” decal, Allied will undoubtedly keep positioning themselves as a premium offering with adjusted premium prices.

by Weenie


joejack951
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by joejack951

TobinHatesYou wrote:
Wed Sep 19, 2018 3:38 pm
Greenlawnracing wrote:
Wed Sep 19, 2018 2:40 pm

So that could basically make a premium Trek (made in USA) or an Allied a "bargain" since the delta between a tarrif'd mid line bike and one of these would be greatly reduced?
No.

A rising tide lifts all boats. Because Trek’s mainline bikes are made in China and represent the majority of its revenue, the tariffs will bite into their margins without associated price increases. Because the low-end bikes will get more expensive, the entire line will scale off of the new pricepoints. It’s all about maintaining margins/net profit.

And as for Allied, you think they’re going to sell their boutique offering at the same prices they are now? Nope. Since their competition is getting more expensive and they offer a “Made in USA” decal, Allied will undoubtedly keep positioning themselves as a premium offering with adjusted premium prices.
Expanding on that 'rising tide' comment, the frame of a bicycle is often not even the most expensive component on the bike when you consider carbon wheels, power meters, etc. So what if your frame isn't hit by the tariff; every other component likely will be making the complete bike a lot more expensive.

nigel379
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Joined: Sat Jun 20, 2009 3:23 am

by nigel379

Also, bc of the "One China" policy Taiwan has not been exempt from the tarrifs, to my knowledge. They were not exempted from the first two sets of tarriffs and from what I read not exempt from this third set of tarriffs. According to the WSJ bike helmets are exempt but bikes and parts (especially ebikes) are targetted. It will be interesting to see the game of chicken the industry will play before jacking up prices. Us North Americans will lose big :x

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tymon_tm
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by tymon_tm

we all will. US market isn't isolated from the rest of the world, and the effect of tarrifs will sooner or later have it's impact on global economy.

I kinda can't believe what's going on with this world anymore. I remember international economic relations was one of first courses on my university, and it took us like few lectures to see and understand how imposing tarrifs is bad for everyone including the country who does it - "that's why modern world doesn't use it anymore and never will, unless the evolution of mankind suddenly starts going backwards" was more or less my proffessors' sum up :roll:
kkibbler wrote: WW remembers.

bilwit
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by bilwit

justinn wrote:
Wed Sep 19, 2018 1:11 am
I just bought two sets of clinchers from Farsports.. shipping tomorrow, will be here next week.. a couple of days after the 10% tariff goes into affect. That really sucks.

Does anyone know if Farsports marks the retail value on the customs forms?
shoulda went with light-bicycle North America (China->Canada->Minnesota->you) 8)

RussellS
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by RussellS

nigel379 wrote:
Wed Sep 19, 2018 8:10 pm
Also, bc of the "One China" policy Taiwan has not been exempt from the tarrifs, to my knowledge. They were not exempted from the first two sets of tarriffs and from what I read not exempt from this third set of tarriffs.
Did not know that. Being an American, I have always thought of China and Taiwan as two separate independent countries. I've also known about China's claims on Taiwan and the One China policy. But its always been two different countries. Didn't realize for trading purposes that China and Taiwan are the same.

Orbital
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by Orbital

bilwit wrote:
shoulda went with light-bicycle North America (China->Canada->Minnesota->you) 8)
Shipping from Canada won’t change anything. Tariffs will be applied because of Country of manufacture. Not point of shipping.

TobinHatesYou
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by TobinHatesYou

Taiwan is exempt from all the "finished product" tariffs.

spdntrxi
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by spdntrxi

There is a documentary on garlic . I think it's on netflix. Google it up.. very interesting stuff and you get a glimse on the underbelly so to speak.

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Kayrehn
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by Kayrehn

Would Canyon bikes be cheaper for the Americans then? Since they ship from Germany after getting their bikes from China.




TobinHatesYou
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by TobinHatesYou

Kayrehn wrote:
Thu Sep 20, 2018 2:04 am
Would Canyon bikes be cheaper for the Americans then? Since they ship from Germany after getting their bikes from China.
See my earlier rising tide comments. It doesn’t matter if the product is directly affected by the new tariffs...all bikes are going to get more expensive.

nigel379
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Joined: Sat Jun 20, 2009 3:23 am

by nigel379

TobinHatesYou wrote:
Thu Sep 20, 2018 12:29 am
Taiwan is exempt from all the "finished product" tariffs.
Where did you find this info? I've searched hard and can't find anything saying the've been exempted in anyway.

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mpulsiv
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by mpulsiv

spdntrxi wrote:There is a documentary on garlic . I think it's on netflix. Google it up.. very interesting stuff and you get a glimse on the underbelly so to speak.
Are you talking about documentary “Rotten”?
Clear picture of how China continue to penetrate the market with lowest prices. Prisoners had to peel the garlic with their teeth because their finger nails got too soft from doing it for so many hours.
Wait until you see what these scammers do with honey.
Not only they are notorious to copy and reverse engineer popular goods, but now they are creating fake cities?!
www.thisisinsider.com/china-fake-cities ... son-2018-3
Racing is a three-dimensional high-speed chess game, involving hundreds of pieces on the board.

:arrow: CBA = Chronic Bike Addiction
:arrow: OCD = Obsessive Cycling Disorder

bouds
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by bouds

Looks like Trek bumped up prices. Checked some Emonda ALR frames and they're about $100 higher today than the beginning of the week.

TobinHatesYou
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by TobinHatesYou

Pretty much every single bike sold by Trek has seen a price increase up to $300 it looks like. The most expensive bikes have seen the smallest percentage increase. A Madone SLR 9 Disc eTap went from $11999 to $12299, while the Emonda SLR Disc frameset also went from $2999 to $3299.

Dealer prices are up the same dollar amount. Effectively this decreases their margins, forces them to spend a bigger outlay on inventory and higher prices will of course result in a few lost transactions.

e: I totally forgot this is a direct result of the tariffs being set to 10% at the moment. I’m January, it will be 25%, so the bikes that cost $300 more now will cost ~$800 more.

by Weenie


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