WHY DO BIKES COST SO MUCH?
We dig into the issues that are pushing prices up and up
It’s no secret that prices have risen sharply in recent years. When we did our first Bike of the Year test in 2017, £2.5-£3k got you an alloy-framed enduro bike with a half-decent spec. Now, you have to spend £4-£5k to get a bike of similar quality. And while £10k bikes were once a ridiculous notion, it’s now common to see machines even from mainstream manufacturers going for more than that. But what are the causes of these price hikes? And will they ever end?
What’s going (wr)on(g)
It’s easy to blame corporate greed, but it’s not like the cycling industry is enjoying a boom right now. Local bike shops are closing down all over, many smaller brands are struggling – including Stanton Bikes, saved from administration earlier this year – and even big distributors are having issues, with Derby-based Moore Large – who imported brands including e*thirteen, MicroSHIFT, O’Neal and SR Suntour – closing their doors in March after decades in the trade.
According to UK trade body the Bicycle Association, the fact that a bike can now cost as much as 40 per cent more than in 2019 isn’t due to price gouging or profiteering, but numerous factors, including Brexit, the war in Ukraine, rising raw material costs, soaring fuel prices, high inflation rates and general economic turmoil.
Costs were already rising steadily prior to 2019, not helped by the UK voting to leave the European Union in 2016. Whatever you think of the Brexit vote, it’s undeniable it led to economic uncertainty, leaving new trade deals to be negotiated and customs arrangements to be clarified. This had a big impact both for EU-based brands and UK manufacturers dependent on parts and frames built overseas. Once the country left the EU in January 2020, import costs increased.
Then, just a month or so later, came the COVID-19 pandemic, which initially saw factories close and bike shops and distributors furlow staff, but soon led to a boom in demand for bikes and parts from the locked-down population. This caused severe disruption to supply chains in 2020 and ’21, with product shortages commonplace and agonising delays for those waiting for new kit. Add astronomical shipping costs, and prices continued to rise unabated.
These issues have largely been resolved, though, so why are we continuing to see high prices? It’s down to the current turmoil in the wider economy, with inflation at record levels, due largely to soaring energy costs resulting from the war in Ukraine. Even without any non-inflationary price rises, a bike that retailed for £2.5k in 2017 would now be £3.1k. That inflation has also caused a cost-of-living crisis, which means fewer people have the money to buy bikes and parts. This unanticipated slump in demand has left many brands with unsold stock, which means they have to make more
of a profit on the kit they do sell, if they’re to break even.
On the bright side...
It’s not all bad news. Let’s not forget that bikes are better than they were in 2017. Geometry and suspension have improved, and brands have developed ride-enhancing new tech, from 1x12 drivetrains and puncture-beating tyre inserts to ‘smart’ shocks and wireless dropper posts. Speaking of droppers, lots of the bikes we tested in 2017 didn’t come with one, which would’ve added another £200-£500 to the cost.
Also, while all that excess stock is bad news for manufacturers, it could lead to some great deals for riders who don’t mind having ‘last year’s bike’. As brands seek to clear older models from warehouses and shop floors, we wouldn’t be surprised to see some sizable discounts in coming months, especially at the mid to low end of the market. Finally, it’s worth noting that while that £10k+ bike may be out of your reach (and ours, outside of testing duties), there are a small minority of riders who can afford to spend that kind of money, and they’re continuing to splash the cash while the rest of us count our pennies. In fact, they’re the ones helping to keep the bike industry afloat, which can only be a good thing for all of us.
Will prices ever go back to their pre-COVID level? It seems unlikely. But hopefully, as the global situation stabilises, they should level off a bit. Until then, you’re either going to have to bite the bullet and accept that several months’ wages is now the price to pay for the joy and adventure that a new bike brings, or adopt a ‘mend and make do’ attitude and keep your current ride running. After all, you don’t need a shiny new steed to have tons of fun on the trails.