For several months last year we were all warned in the bicycle industry that prices on bicycles and aftermarket parts were all on the way upward. 15% to 20% we were told. In some cases we have already seen this. Will it continue? How can the global economy be in severe contraction and bicycle prices be on the upswing? Well, there is a bit of a reason for this.

Will prices of bikes still be on the upswing in the face of economic crisis?

The thing about the bicycle industry is that it runs well ahead of where we are on the calendar. 2010 bicycles and products? Yeah…..done! Those are being made as we speak. So it would be fair to say that all of 2009 and possibly most of what we will see for early 2010 releases will all reflect these higher prices. With the difference between what these bicycles and parts are bought for by companies and then resold to the public to being so slim (The difference being referred to as a “margin” in business terms.) I don’t think going down on prices will be an option.

So, what to do? Many companies are holding back development on new products and waiting out the economy. Waiting to see what will happen this spring here in North America. If cyclists do what consumers did during this past Christmas holiday season here, things could get pretty bleak in the cycling industry.

Still, it may not turn out that way. Cycling tends to weather economic storms better than most industries, and a new administration in Washington might bouy consumer confidence enough to provide a smoother road for the industry.

In the end, all we know for now is that prices will be up from last year and not likely to turn around any time soon.