Bike sales dive?
From BikeBiz.com - Road bikes heading for a dive in the US?
Sales figures through June '06 look good, but inventory levels on expectation of future sales are still high. It's not doom and gloom, but it appears they were overzealous in their '06 forecasts. Inventory levels for May '06 were nearly doubled for the same period in '05. Logic would dictate that suppliers may be looking to discount bikes to retailers in the coming months.
I'd be curious to know the price-point breakdown of those inventory levels. Something tells me that high-end racing bikes won't be coming down much at all. Margins on bikes are thin as it is with shops profiting mainly from accessories and maintenance.
Regardless of what anyone thinks Lance Armstrong's success definitely had a positive impact on bicycle sales. With Lance retired we need someone new to come along and make it cool to be on a bike. Either a new role model has to emerge for our sport in America to continue to grow or Lance should be coaxed (and paid!) to promote bicycling in a more general healthy lifestyle sense.
Floyd Landis had an opportunity to extend this influence on people not previously interested in cycling, but unfortunately the positive test result has negatively influenced them. I think a lot of this has to do with the mainstream media (MSM) taking more notice and reporting about the story. More attention is paid to potential cheaters and test results, which helps to sell more newspapers and ad space. Plus, illegal performance enhancing is in the forefront of everyone's mind because of BALCO and Barry Bonds. The MSM is all over the Landis story and won't let it get it pushed to the last page or news segment. I shutter to think how they'll report of him and the sport if the B sample result is positive as well.
Sales figures through June '06 look good, but inventory levels on expectation of future sales are still high. It's not doom and gloom, but it appears they were overzealous in their '06 forecasts. Inventory levels for May '06 were nearly doubled for the same period in '05. Logic would dictate that suppliers may be looking to discount bikes to retailers in the coming months.
I'd be curious to know the price-point breakdown of those inventory levels. Something tells me that high-end racing bikes won't be coming down much at all. Margins on bikes are thin as it is with shops profiting mainly from accessories and maintenance.
Regardless of what anyone thinks Lance Armstrong's success definitely had a positive impact on bicycle sales. With Lance retired we need someone new to come along and make it cool to be on a bike. Either a new role model has to emerge for our sport in America to continue to grow or Lance should be coaxed (and paid!) to promote bicycling in a more general healthy lifestyle sense.
Floyd Landis had an opportunity to extend this influence on people not previously interested in cycling, but unfortunately the positive test result has negatively influenced them. I think a lot of this has to do with the mainstream media (MSM) taking more notice and reporting about the story. More attention is paid to potential cheaters and test results, which helps to sell more newspapers and ad space. Plus, illegal performance enhancing is in the forefront of everyone's mind because of BALCO and Barry Bonds. The MSM is all over the Landis story and won't let it get it pushed to the last page or news segment. I shutter to think how they'll report of him and the sport if the B sample result is positive as well.
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