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Discussion Starter · #1 ·
there has been some recent dumping of some high end components as of late...xtr disc brakes for one,way below whole sale....whats the word on the streets for bikes sales for 2009.
Are some of the dealers pulling in there horns for the new year,I know in my area sales are way down,and we still have another shoe to drop now that the bonuses have run dry....:nono:
 

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It does depend on the shop, region, area. If you go by distribution or reps, some are down, some are up. I know several companies are up as a whole and even dropped prices slightly.

The bigger companies can also absorb profit narrowing coupled with increased cost to help keep their manufacturing and distribution pipelines open. If they close, it's hard to fit themselves back in if they subcontract if they put companies out of work, or keep their own manufacturing employees working for the next season. It's a good thing some of these companies are doing just to keep those channels open and people employed. Giant seems to be doing pretty well.
 

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Harmonius Wrench
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Many times you will see certain product dumped because a newer version is in the pipeline, or because a certain part is being discontinued. Sometimes OEM's overbuy, or cancel a parts run. Then you will see component groups, or singular parts go for cheap. Generally bigger companies get this stuff, especially online retailers.

2009 stuff is a done deal. It is either here or coming shortly. The pre-season buying was done just about the time the poo hit the air circulator last fall. So, that is locked in for most LBS's.

In my view, the retail sector is set. Ther cards have been dealt and they will have to work with whatever s in their handsfor the first half of '09.

Later 2009 and certainly by this time next year we will know if the cycling industry is tanking, but this industry works so far ahead it will take awhile before the effects are seen on the street. That's if the sales are flat or down in '09. If things start to look like they will recover, and/or if sales still seem solid or are increasing, then it will hardly be a blip on the radar.

Time will tell.
 

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Harmonius Wrench
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grantheppes said:
Shop I worked at had to close up the storefront, now its just the owner doing it all online part-time. Sad, very sad.
Not to be disrespectful of your situation, but LBS closures have been happening at a steady rate for several years now, and that seemed to be independant of the economy in general, or regionally specific due to regional economics.

I'm not sure why the LBS you worked at closed up, but I am just saying that LBS closings are nothing new, and not necessarily related to the OP's original comment.

Good luck on your future. I hope you are okay.
 

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trail rat
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Guitar Ted said:
Not to be disrespectful of your situation, but LBS closures have been happening at a steady rate for several years now, and that seemed to be independant of the economy in general, or regionally specific due to regional economics.
I began working in the bicycle industry in the early 70s; was hired on as a manufacturer rep in 1979. Every dealer hounded me about open accounts instead of COD shipments.

As I approached the subject with my sales manager (company co-owner with his brother), he stated that bike shops were second only to pet stores in business failure rate by percentage. That may have changed for some of the larger companies now, but I suspect that many of the smaller ones fail at a higher rate than the average small business. Then again, I may be wrong.
 

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Discussion Starter · #11 ·
slocaus said:
I began working in the bicycle industry in the early 70s; was hired on as a manufacturer rep in 1979. Every dealer hounded me about open accounts instead of COD shipments.

As I approached the subject with my sales manager (company co-owner with his brother), he stated that bike shops were second only to pet stores in business failure rate by percentage. That may have changed for some of the larger companies now, but I suspect that many of the smaller ones fail at a higher rate than the average small business. Then again, I may be wrong.
I think your right,I'd put money on it that one third of the bike shops in co. will fail in the next two years....:nono:
 

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grantheppes said:
Shop I worked at had to close up the storefront, now its just the owner doing it all online part-time. Sad, very sad.
This is a rather ironic situation......as a large reason for bike shop closures is overwhelming competition from internet sales........

Our shop has a huge repair focus,its common for me too stay after working 10 hours and crank out another 7-8 bikes after hours. Thats something people cant get online, which helps protect us to an extent, but only to so much.
 
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