Big Specialized price increase

[GJACK]

I was in my LBS last week and they told me I was fortunate to have bought a Levo Comp a month ago because of the pending price increase. I would not have it now if the price would have been $7500. Too much money and now need to keep the bike by my bed at night as I am afraid to leave it in my shop. I asked my LBS, why the price increase and they told me shipping costs etc., empty containers going back to Asia, which was unprecedented and numerous supply reasons etc. none of which made sense for such an enormous increase. After researching this forum I chose the levo comp mainly because of the excellent reviews of the Vado and reviews from EMBT and Gear-lab. This bike is a Hell of a product that is not a commodity. Even though not a commodity, I can't imagine after working for 37 years in a tough commodity business that Specialized would increase the price $1200 over night unless they have a strategic plan other than "because they can" and pure greed. If I were a progressive business going through the supply line issues promulgated by COVID, I would try to consolidate, control (exemplified by SL proprietary motor), and simplify/control my supply chains. If the cost of doing this is the price increase, then in the long run, it may be a wise decision. I am not trying to justify their increase as I am amazed it's breadth, but these are unusual times. Am I naive?

 

[rochrunner]

A bike shop owner did a YouTube video about the Specialized bike price increase on Feb 1. He discussed it from a bike store's perspective and how it's going to make it be much harder for him to sell their bikes now. Specialized bikes already were expensive and many of them are consistently out of stock with long wait times. The price increase also puts bike shops in a hard spot. Anyway, I thought it was interesting and am passing it on.

Interesting. I wonder if the reason they're raising prices isn't because they're selling so many, but because they're (obviously) having trouble getting bikes in stock to actually sell. Their volume of sales has to be down since everything is always showing out-of-stock; they sell all they can get, but apparently can't get them! I'd dearly like to try out a Vado SL as a possible replacement for my regular Vado but have yet to lay eyes on one.

 

[kmccune]

People need to stop buying these overpriced things,I learned a long time ago to never pay the"hard to obtain fee" on a vehicle. I didnt know they shipped empty "Con-Ex" containers back to China( "deadheading" I suppose) there always seems to be a bunch of these things for sale.

 

[BEC111]

Interesting. I wonder if the reason they're raising prices isn't because they're selling so many, but because they're (obviously) having trouble getting bikes in stock to actually sell. Their volume of sales has to be down since everything is always showing out-of-stock; they sell all they can get, but apparently can't get them! I'd dearly like to try out a Vado SL as a possible replacement for my regular Vado but have yet to lay eyes on one.

This discussion and a parallel one about an August Aventon article on supply constraints hint at the forces enabling and requiring price increases. The global supply chain problem, especially shortages of components such as brakes, tires, gear sets and so forth is not only delaying the production of new bikes, it is also increasing costs. Costs go up because component manufacturers are raising prices (for all the reasons I’m discussing). Costs also are going up do the cost of money and debt. Even with very low interest rates, the carrying charges and tax liabilities for incompletely built bikes kept in inventory can be substantial. Especially for low margin Internet bikes.

So costs are going up even though they can sell every bike they can deliver; having partial bikes is expensive.

And, as others have pointed out high demand and low supply often results in higher prices. If the buyer wants something bad enough they will pay almost any price. When products are usually sold at a discount - always on sale - the demand/supply equation results in sales as list price. When products are almost always sold at list price, that price is raised to what the market will bear.

Most of the major bike manufacturers are raising prices. So these forces are affecting the whole industry.

 

[Douglas Ruby]

Most of the major bike manufacturers are raising prices. So these forces are affecting the whole industry.

I guess this means I can keep my beautiful 2015 base model (200W) Turbo until I have either a battery or motor failure. It is in great repair, has the 691Wh Turbo S battery with bluetooth, upgraded brakes, Shimano Deore XT 11-spd (11-42), factory fender kit, Kinekt 2.1 seat post, and new Marathon tires. If I can get one or two more seasons, maybe things will be at a new normal in 2023 or so.

 

[BEC111]

I guess this means I can keep my beautiful 2015 base model (200W) Turbo until I have either a battery or motor failure. It is in great repair, has the 691Wh Turbo S battery with bluetooth, upgraded brakes, Shimano Deore XT 11-spd (11-42), factory fender kit, Kinekt 2.1 seat post, and new Marathon tires. If I can get one or two more seasons, maybe things will be at a new normal in 2023 or so.

Or the new normal at 2023 prices.

 

[RandallS]

Surely cannot be any worse than that fool who was in charge before or are all your Politicians equally stupid?

Seeing how you are from the UK, I would think that your spellcheck app disturbed your post.
What came out as "all your" must have surely meant to be "all OUR".

Posting here from chilly Canada, we most certainly would agree with "OUR" being the operative word unless one was from New Zealand or a select few other nations.

 

[Asher]

Is it tariff related?

 

[Admin]

I had hear about the Specialized bike price increase too recently, and yeah, their bikes were already pretty pricey! Must stay though, I love the SL models... perfect for that step between an acoustic bike and the super powerful ebikes. I love that they continue innovating, and I can see why maybe their cost of materials have gone up as well as shipping. Someone from another brand was telling me the the price to ship a container has increased by over 150% since a year ago. That's a lot to deal with if you're a company, not to mention the China tariffs and stuff from the past year. @Douglas Ruby, one of the reasons I enjoy cycling, hiking, kayaking etc. is to get away from the complexity and confusion of media and politics. I frequently hold back on those topics here because I find that it can lead to misunderstandings and hurt feelings. Thanks for your input!

 

[BarryS]

Are you saying that it's untrue ? Otherwise why would it be contentious . It's the facts Nothing to contend with

 

[Drozdster]

Today I went down to my small town, New Hampshire LBS and bought a 2021 base model Levo for the old price of $5000. They told me that for any bike that they had in stock they weren't going to raise the prices. Any new bikes that have to be ordered will have the new prices. I had my sights on a Levo Comp, but they didn't have one of those in stock in my size, so I went with the base model Levo.

These folks have a fair number of Specialized and Trek in bikes and ebikes in stock. Today, I remember seeing a random selection (meaning not every size and style) of Como's, Vado's & Vado SL's. I saw a Levo SL Comp - large, a base model Creo - small, a Creo SL Comp Carbon EVO - medium. That's all that I remember. Because it's winter here and ski season, they're focusing on skis right now, not bikes. They said that they have more new bikes in storage that haven't been built yet. (I think he said there's no more Levo's or Creo's in stock and unbuilt though?) All of these bikes have Jan 31 pricing.

If anyone is looking for a Specialized bike or ebike and is willing to drive to New Hampshire, reach out to me individually and I'll tell you where to find these folks.

Anyway, I thought all was lost in my new bike quest, but somehow it worked out!

Hi,
I am in the market for a Vado SL so I am interested in the LBS name.
Thank you,
Alex

 

[kmccune]

I had hear about the Specialized bike price increase too recently, and yeah, their bikes were already pretty pricey! Must stay though, I love the SL models... perfect for that step between an acoustic bike and the super powerful ebikes. I love that they continue innovating, and I can see why maybe their cost of materials have gone up as well as shipping. Someone from another brand was telling me the the price to ship a container has increased by over 150% since a year ago. That's a lot to deal with if you're a company, not to mention the China tariffs and stuff from the past year. @Douglas Ruby, one of the reasons I enjoy cycling, hiking, kayaking etc. is to get away from the complexity and confusion of media and politics. I frequently hold back on those topics here because I find that it can lead to misunderstandings and hurt feelings. Thanks for your input!

I think the gook they burn in those container ships is getting more expensive and Mr.Trumps tariff actions cost"Joe Average" more , I do not care for either party and I am sure either party doesn't care for me.( sorry,I forgot we cannot do a political slant on these posts)

 

[jabberwocky]

Specialized has always been expensive, so its not surprising that they are taking lead on big price hikes. But increased prices are almost certain across the board. Shipping has increased in price, materials have increased in price, and manufacturers and shops are selling every bike they get in almost as fast as they get them. In the face of that, raising prices is pretty much a given.

Take a hike: Bike prices will go up again

(BRAIN) — A C-student in whatever class comes before Economics 101 could predict price increases in the industry in 2020, given the imbalance between supply and demand. And 2021 will likely see retail prices go up another 10-25%, experts say.

www.bicycleretailer.com

 

[Amoto65]

Due to a shoulder injury I was considering selling my Creo and getting a more upright bike like a Vado but not sure what would be the best course of action now with the shortages.

 

[BEC111]

Due to a shoulder injury I was considering selling my Creo and getting a more upright bike like a Vado but not sure what would be the best course of action now with the shortages.

If you can find a bike to buy, get it. After a test ride to confirm your thinking on ride position, of course.

 

[TForan]

From overpriced to ridiculously overpriced.

 

[Art Deco]

I wonder about resale value on your Creo ... it may be worth much more than expected since they are so hard to find now. Welcome to the new normal.

 

[BarryS]

Is it tariff related?

not with Specialized . Pretty sure they are from either Switzerland or Denmark . Or Sweden . It's one of those countries . Obviously I didn't look it up before responding .

Specialized has always been expensive, so its not surprising that they are taking lead on big price hikes. But increased prices are almost certain across the board. Shipping has increased in price, materials have increased in price, and manufacturers and shops are selling every bike they get in almost as fast as they get them. In the face of that, raising prices is pretty much a given.

Take a hike: Bike prices will go up again

(BRAIN) — A C-student in whatever class comes before Economics 101 could predict price increases in the industry in 2020, given the imbalance between supply and demand. And 2021 will likely see retail prices go up another 10-25%, experts say.

www.bicycleretailer.com

Everything you can think of is going to increase alot . It's what the economists warned about as the result of Covid lockdowns , while government spending went thru the roof. I believe they referred to it as Hyper-inflation . It's going to get far worse . It some areas it already has . Like Lumber , dairy, guitars , Ammo etc. That's the NEW NORMAL . A World of Poverty for most

 

[BEC111]

not with Specialized . Pretty sure they are from either Switzerland or Denmark . Or Sweden . It's one of those countries . Obviously I didn't look it up before responding .

Everything you can think of is going to increase alot . It's what the economists warned about as the result of Covid lockdowns , while government spending went thru the roof. I believe they referred to it as Hyper-inflation . It's going to get far worse . It some areas it already has . Like Lumber , dairy, guitars , Ammo etc. That's the NEW NORMAL . A World of Poverty for most

Take a breath, Barry. Besides being mostly wrong, your constant politicizing is incredibly annoying.

 

[Amoto65]

Take a breath, Barry. Besides being mostly wrong, your constant politicizing is incredibly annoying.

Agreed, We should all be grateful for being alive and being able to enjoy the joys of cycling.