Cost Increases = Price IncreasesJan Heine
Unlike most posts, this isn’t one that I enjoy writing… Over the past decade, we’ve seen a period of remarkably stable prices. In fact, it’s been more than five years since our prices have changed across the board – and back then, they went down, because the exchange rate to the Japanese Yen had become more favorable.
Things have changed over the last few years. The trade wars have caught the headlines, but they haven’t affected us directly. Our high-quality products are made in Japan, Germany, France, Taiwan and, of course, the United States – not the countries that have had big tariffs levied on them. However, the trade wars have rippled throughout the world, and they affect us as well: The dollar has lost in value, which increases the cost of the parts we make overseas.
Why not make them in the U.S.? We make many parts locally or in the U.S., but for others, there simply is no domestic manufacturer who can make bicycle tires, forged bike parts, and other high-end components.
The cost of raw materials has also increased due to tariffs and other disruptions. This affects everything from aluminum (used on most of our components) and copper (generator hubs) to rubber (tires), and it’s been substantial.
Our components are made in batches, and our suppliers buy their materials in large quantities, so these cost increases haven’t hit us all at once, but as a steady trickle. For a while, we’ve been able to absorb them. At some point, we have to pass them on to our customers. This means that over the next few months, our prices will increase. It won’t be a huge increase, and it won’t affect all our parts. And for the time being, we’re of course still taking orders at the old prices. We want to give our loyal customers a heads up, so it doesn’t come as a surprise. We hope you’ll understand.