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2019 Giant bikes just went up in price today!

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snakemau

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Discussion starter · #1 ·
So I was looking at some bikes over the weekend and was clear on the prices at Giant, but today I was looking at them again and noticed the price was higher...so I chatted with one of their representatives and he said: "Due to the current climate surrounding imported goods across industries, there has been a price increase of certain models effective today" "Many factors have contributed to this change. I'm sorry for any inconvenience".....

So the Anthem Advanced Pro 29 0 went from $11,500 to $12,075 and the Pro 29 1 from $5,000 to $5,500. The Anthem 29 2 from $2,800 to $2,940. Not sure if the new Trance models or any others went up as well, I was looking only at the Anthems....in any case if they were trying to get one leg up over the competitors, that just went out of the door....I know is not a big increase, but still....
 
#2 ·
snakemau said:
So I was looking at some bikes over the weekend and was clear on the prices at Giant, but today I was looking at them again and noticed the price was higher...so I chatted with one of their representatives and he said: "Due to the current climate surrounding imported goods across industries, there has been a price increase of certain models effective today" "Many factors have contributed to this change. I'm sorry for any inconvenience".....

So the Anthem Advanced Pro 29 0 went from $11,500 to $12,075 and the Pro 29 1 from $5,000 to $5,500. The Anthem 29 2 from $2,800 to $2,940. Not sure if the new Trance models or any others went up as well, I was looking only at the Anthems....in any case if they were trying to get one leg up over the competitors, that just went out of the door....I know is not a big increase, but still....
Click to expand...
They are smoking crack if they think they can command those prices. Canyon did the same thing recently and raised their prices - by as much as $1000 in some cases.
 
#5 ·
Looks like about a 5% increase - in line with how other companies are responding to the tariffs. Rather than increasing the prices drastically on Chinese-made product, they just do a smaller increase over a wider swath of product.
 
Discussion starter · #6 ·
Correct but then why advertise one price at launch and then change it when orders are in full swing? Should had the prices corrected to start....unless they just want to get more if sales are going well and use this tariff as excuse for the prices...
 
#9 ·
Deep Thought said:
Weren't the tariffs announced/put into effect between the time of launch and yesterday?
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There has been talk for a while. My understanding - and I'm never 100% sure of anything - is that the tariffs in place now, on imports to the U.S. are on "first sale" value, whereas other countries levy it on "last sale". So, for U.S. import tariffs, if a foreign entity sells a ton of steel, carbon, zizzerzoff seeds, whatever, to his cousin, wife, holding company, distributor, or whatever for $1000 and that entity sells it to the U.S. for $10,000, the tariff is applied to the lesser amount.

That is, the new cost would go from $10,000 to $10,250 on a 25% tariff on steel, or, effectively, a 2.5% tariff.

The opposite is true on imports to countries from the U.S., where they generally apply the tariffs on the $10,000.

Additionally, some exporters to the U.S. will lower their prices to maintain market share. But....apparently NOT Giant.

The bottom line is that a 25% tariff on imports to the U.S. does not result in a 25% increase in the cost of the goods subject to the tariff.

In this case, I suspect the 5% price increase, is about things other than JUST tariffs. There is still such a thing as inflation, after all. Prices go up, especially if demand is up with supply down.
 
#12 ·
MSU Alum said:
There has been talk for a while. My understanding - and I'm never 100% sure of anything - is that the tariffs in place now, on imports to the U.S. are on "first sale" value, whereas other countries levy it on "last sale". So, for U.S. import tariffs, if a foreign entity sells a ton of steel, carbon, zizzerzoff seeds, whatever, to his cousin, wife, holding company, distributor, or whatever for $1000 and that entity sells it to the U.S. for $10,000, the tariff is applied to the lesser amount.

That is, the new cost would go from $10,000 to $10,250 on a 25% tariff on steel, or, effectively, a 2.5% tariff.

The opposite is true on imports to countries from the U.S., where they generally apply the tariffs on the $10,000.

Additionally, some exporters to the U.S. will lower their prices to maintain market share. But....apparently NOT Giant.

The bottom line is that a 25% tariff on imports to the U.S. does not result in a 25% increase in the cost of the goods subject to the tariff.

In this case, I suspect the 5% price increase, is about things other than JUST tariffs. There is still such a thing as inflation, after all. Prices go up, especially if demand is up with supply down.
Click to expand...
Yes, there's been "talk" all summer, but the tariffs on bicycles weren't officially announced until last month, with the 10% part already having gone into effect on 9/24. It's likely that Giant set their 2019 pricing over the summer, just prior to launch, and then had to adjust due to these tariffs. Trek announced a similar increase and said in a letter to retailers that it was directly due to the tariffs.

Regarding your application example:

Wouldn't the manufacturer apply the tariff before they mark up the price? So in your example, 25% of $1000 is $250, which makes the manufacturer's cost now $1250. Marked up the 900% in your example, the final price is now $12,500, or ... a 25% increase.

It's amusing that some people seem to not want to believe that these tariffs have affected pricing.

Industry Execs: These tariffs will cause price increases for consumers

United States Trade Commission: Don't care. F China.

Mountain Bikers: But why are bikes more expensive now?! There HAS to be some reason!
 
#13 ·
I saw a blog post about this from Performamce Bike. It’s really supposed to effect the lower end Chinese bikes. That disproportionately effects low cost transportation bikes and children’s bikes. I wonder if they are hitting the expensive bikes because those of us that can afford to buy them need to subsidize these nutty tariffs so poorer individuals can buy needed transport? If that is the case, I don’t have a problem with it.

https://blog.performancebike.com/what-the-new-tariffs-mean-for-cycling/

Vote blue, folks.
 
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#14 ·
margins on bikes aren't all that huge.. these tariffs are bound to raise prices for bikes..

without getting political prices keep reflecting realities of cost to make things .. but wages have not remotely kept up with said realities..
 
#17 ·
Trance Advanced 29 0 is cheaper in Canada straight up than the USA...even with our dollar being $0.77 US

Sweet for us Canadians
 
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