Steel prices have been on the rise in the past few years and steel is one of the important raw materials for making bicycles. The increase in steel prices has led to a shift in the supply curve, meaning that there are fewer suppliers due to higher production costs.
RISE IN PRICE
This will lead to an increase in the price of bicycles as well, which can only be offset by increasing demand for them or decreasing their cost of production.
This means that bicycle manufacturers will have to find a way to use fewer materials in order to decrease the cost of production. The only other options are looking for new suppliers or passing on the increased price and accepting lower demand from consumers. The article goes into greater detail about steel prices, their impact on supply, and what it might mean for bike producers.
They also mention how this affects both customers as well as retailers who sell bikes- an interesting point not often covered in articles talking about the industry!
Sometimes people don’t realize just how many different parts there are that go into creating a single product like bicycles, so it’s important to note these types of impacts when they happen.
