Does cycling follow wall street?

[jischr]

I never paid attention before. When a 6 month downturn happens on wall street do the LBS and onliine stores tend to hold tight? Drop prices 10%? Slash prices to get sales? Just curious with prime riding season starting up with the mid to low price point buyers potentially out of work or reduced income.

[unterhausen]

It's not going to be a good thing for any kind of discretionary spending. The bike industry has not been in great shape for some time now, I'm sure we are going to see some shops in distress.

[ERK55]

And how about builders doing custom work?

[biker72]

Where I work the old timers tell me that bike sales were flat during the 2008 recession. An average year.

What does influence bike sales is gas prices. When the gas goes north of $3.00 per gallon entry level bike sales increase sharply.

[paredown]

One thing we witnessed was when London put in the congestion zone pricing to keep cars out of the inner core.

That sparked a boom in bike sales!

[93KgBike]

The OPEC/Russia/USA oil price war will make gas/diesel cheaper?

If so, we may see cheaper cars :mad:

[daker13]

Be warned, this is not a very informed observation. But it seems like I rarely see steep discounts on the stuff I'm interested in (be it bike stuff or whatever) when the economy's not good... as if the companies needed money badly, but so badly that they couldn't afford to price their products really low.

[oldpotatoe]

I never paid attention before. When a 6 month downturn happens on wall street do the LBS and onliine stores tend to hold tight? Drop prices 10%? Slash prices to get sales? Just curious with prime riding season starting up with the mid to low price point buyers potentially out of work or reduced income.

eeeh, maybe? My worst months at the shop were an October in 2008 and then again in November of 2012(election)..but I doubt any retail place is rushing to do anything right now. I think the biggest 'issue' is going out and about..online places certainly have an advantage here. I suspect big groups of riders will not be as common..I suspect 'maintenance' items will still be bought. I doubt people will stop by their favorite coffee shop or bakery during their rides..

[SimonC]

If you listen to the various builder interviews on The Pull podcast, many reference orders drying up during the last financial crisis. Custom bikes are expensive and discretionary, so many people reconsider their appetite. Even more so if they are the victim of layoffs e.g. travel and hospitality sector.

There’s then the secondary issue that with social distancing and the possibility that Covina-19 will be with us for some time, people will undertake social activity like cycling less which will also hit demand.

[oldpotatoe]

If you listen to the various builder interviews on The Pull podcast, many reference orders drying up during the last financial crisis. Custom bikes are expensive and discretionary, so many people reconsider their appetite. Even more so if they are the victim of layoffs e.g. travel and hospitality sector.

There’s then the secondary issue that with social distancing and the possibility that Covina-19 will be with us for some time, people will undertake social activity like cycling less which will also hit demand.

I would think cycling ..alone...would be a great way to exercise and minimize any infection...or any outdoor activity, alone, like walking...