The current price slashing on bikes doesn't necessarily point to a crash — it's a return to normality

One of the main parts of my job reviewing bikes is to keep an eye on the prices in the marketplace, following trends and keeping tabs on competition and value between the brands. After some huge bike price increases we have since seen these prices (and the world in general) return to some kind of normality after the Covid years, and I haven’t been surprised by the dramatic downturn in bike sales or their prices, especially for the larger brands like Giant, Specialized and Trek.

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I think big brands possibly struggle to have the flexibility to be able to adjust to the changing marketplace like smaller ones do, due to things like component shortages (a situation that has now changed to what some in the trade have now called a 'flood of supplies'), world events, and the way that the world’s economy has changed for consumers, which has seen brands, manufacturers and distributors caught out and overstocked in some areas. 

What we've ended up with is a surplus of bikes in the marketplace, including new ones from the manufacturers, second-hand ones from those people who bought new bikes during Covid lockdowns who no longer want to ride on busy roads, plus the huge amount of stock that was dumped cheaply into the market via the large number of distributors and retailers going under such as Moore Large and Wiggle/CRC.    

Plus, due to the cost of everything going up, people who took up cycling during Covid or have done recently don’t feel the need to upgrade yet; or at least, it's probably not a priority for them at the moment.

Many brands also release their new year models in September, so there is also the need to shift 2024 stock to make way for the new paintjobs arriving in a few months’ time.

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Obviously, from a consumer perspective if you do want or need a new bike then any drop in price can only be a good thing. Seeing bikes like Giant’s Contend SL Disc 2 being offered at under £1,200 with a Shimano Tiagra groupset and hydraulic disc brakes is a welcome return to some kind of normality. The rim brake version of the Contend 2 at just over £700 is also a more realistic price for an entry-level road bike, compared to the original asking price of £879. 

It’s not only the entry-level that is seeing a realignment either, with top-end bikes like the TCR Advanced SL Disc 0 seeing a £2,200 drop from RRP.

Personally, I don’t think we are seeing any kind of crash in the cycle trade. It's more of a realignment to pre-Covid pricing levels, the like of which we're also seeing in the new and used car trade and the technology market.