In a press release which tackles head on the thorny subject of price increases, Orbea today announced that the brand has been forced to change its prices for this year.
Spelling out, in detail, the factors behind the change in pricing, Orbea lists a collection of forces which are now familiar within and beyond the cycling industry:
- The prices of raw materials such as aluminium, steel, and carbon have been rising continuously for months, as have fuel prices.
- Transport costs have also risen disproportionately due to a shortage of containers, ships, and to congestion at ports.
- The bike industry, like many others, is suffering from intermittent or ongoing failures in the supply of components. This forced Orbea to modify its specifications or seek similar alternatives, in order to maintain quality.
The announcement also highlights that, ‘unlike other brands in the sector, Orbea has so far held out against raising prices.‘ with Gonzalo García de Salazar, the company’s Global Sales Manager stating, “We are a company that is committed to our community of users and our stores. We are continuously monitoring market trends and have done everything that we could to avoid this price update, but there is no sign of the upward trend in costs being corrected.”
The announcement continues, ‘Seeking to minimize the impact for dealers and users alike, Orbea has made a further effort to maintain its prices on those bikes already reserved by users and confirmed by their dealer in the Orbea system.’
“This has been a difficult decision for Orbea, because it will have consequences for our stores and for the cycling community, who have trusted and continue to trust in our brand. We understand what this means“ concludes Mr García de Salazar.
The new prices can be found at orbea.com, starting 20 January.
The subject of cost and subsequent price increases, slipping supply schedules, and margins, remains a source of ongoing concern across the cycling industry, something which seems unlikely to resolve in a ‘near future’ timeframe.