Indoor trainer price GOUGING during / after lockdown...

[NINER_boy]

Hi Hubbers

 

As I am sure everybody has been doing, I have been keeping an eye on indoor trainer prices, as the cabin fever is getting to me.

 

A week ago, most online retailers had the Wahoo Kickr 4 at R19 999.

This week, it is priced at R24 999.

 

That is a 5k jump.

 

I understand the R/$ exchange rate and then some, but in the last month (I take it that stock will be ordered systematically), the exchange rate only changed around 12%, and that is far from the 25% on the trainer price jump.

 

16th of March 2020 it was R16.63 to 1$

16th April 2020 it is R18.74 to 1$

 

Seems excessive.

 

Anyone else noticed?

[Schnavel]

While the exchange rate plays a role, it ultimately comes down to supply and demand.

 

Worldwide, there has been a scramble to purchase indoor trainers as different countries go into lockdown etc. at different times. As a result, the demand has massively increased and therefore, the suppliers increase their prices (they know people will still purchase them).

[Jewbacca]

I'm going to guess there will be a flood of lightly used 2nd hand trainers flooding the market 8 weeks after we are back to being able to ride outside again.

 

As we don't know when that will be, demand is high. The one question is, will people get their lockdown purchases before they are allowed out to ride?

 

It could be that they allow activities the same time as they open up shipping of non essential services.... 

 

This is of course all hearsay, but it could just be the case.

 

Supply/demand X is a way of life unfortunately. We, the consumer, drive the market, so it's our fault too! 

[BaGearA]

2nd hand trainers are where the most gouging occurs I think

 

Retailers just screw you every day or week, now is just the ideal time to turn the dials up

[Chris_]

It may not only be our retailers and the ZAR, because the whole global supply chain has stopped the suppliers' suppliers maybe struggling to find materials, parts, shipping, plus their 2c on the side. 

 

Or maybe given the ridiculous break-even/or loss making sales our guys have been having recently they need to start recouping some losses.

 

Don't know

[JBK]

And don't forget that most retailers were discounting the kickr4 to R18k prior to lockdown...

 

As per other comments above, I'm waiting to pick up a 3 month old (hardly used) kickr4 for R12k about a month or 2 after we're all allowed out...

 

And then the new prices will start to be heavily discounted...

[leeubok]

I'm going to guess there will be a flood of lightly used 2nd hand trainers flooding the market 8 weeks after we are back to being able to ride outside again.

 

 

 

I hope so, as I'd love to get one but just can't justify spending R15 000+ on a trainer. 

[Pusher]

I hope so, as I'd love to get one but just can't justify spending R15 000+ on a trainer. 

I've had a smart wheel-off trainer for the last 2,5 odd years and I must say it has been one of my best spend rands on cycling equipment including my subscription for the training program that I use. I guess the Covid lockdown may have made it the best rands ever spent!

Edited April 21, 2020 by Pusher

[DieselnDust]

Globally demand is up, but supply is low. Price goes up.

 

secondly our distributors in SA don't know where the Rand is going to end up by July. Pessimistic view is R20 to the US$ Optimistic view is R13 to the 1US$. Most are taking forward cover for the pessimistic view and will therefore profit is the optimistic view pans out.

But demand is going to remain low for some time. Right now so many small businesses are on the ropes, an IDT is not going to be a necessity if you have to lay off staff, even less if you getting laid off.

 

Twelve months from now the prices may be more normal anyway as I can't see the world returning to what we considered to be normal, for a t least the next 2-3 years. Discounted prices now are really just to clear stock and have cash on hand to pay staff and rentals and place orders for replenishment so that retailers and distributors can retain their businesses. I'm trying to support as pragmatically as I can

[Vetplant]

SNIP

secondly our distributors in SA don't know where the Rand is going to end up by July. Pessimistic view is R20 to the US$ Optimistic view is R13 to the 1US$. 

 

SNIP

Wow, I didn't think the range is that wide, but then again these are completely unknown times. We might well come out of this ways stronger than the West or China and suddenly we are the supply chain of the world.... (unlikely, but stranger things have happened)

[Paul Ruinaard]

Globally demand is up, but supply is low. Price goes up.

 

secondly our distributors in SA don't know where the Rand is going to end up by July. Pessimistic view is R20 to the US$ Optimistic view is R13 to the 1US$. Most are taking forward cover for the pessimistic view and will therefore profit is the optimistic view pans out.

But demand is going to remain low for some time. Right now so many small businesses are on the ropes, an IDT is not going to be a necessity if you have to lay off staff, even less if you getting laid off.

 

Twelve months from now the prices may be more normal anyway as I can't see the world returning to what we considered to be normal, for a t least the next 2-3 years. Discounted prices now are really just to clear stock and have cash on hand to pay staff and rentals and place orders for replenishment so that retailers and distributors can retain their businesses. I'm trying to support as pragmatically as I can

We have seen freight costs also go through the roof. Its going to be a very different world out there for imports in the future.

 

The bold truth is that if you want one you will pay up.

[DieselnDust]

Wow, I didn't think the range is that wide, but then again these are completely unknown times. We might well come out of this ways stronger than the West or China and suddenly we are the supply chain of the world.... (unlikely, but stranger things have happened)

 

 

Well the only reason we're at 18.99 is because the markets always run back to the safe currencies when the world goes to shyte. 

When things open up then our commodities are back on the market. At the moment theres just an oversupply of everything, commodity prices tank and so does the Rand.

Every crash has always seen the rand come back strong but then we had that puss Zuma and his thieving parliament.

Even Eskom is seeing the wood from the fire and realising that bail outs are not coming and efficiency has to come soon rather than later. The Window is trying to get go to  backtrack on the job creation mandates that Eskom has to adhere to. 

TradeUnions,....well that lot won't see the fire because they just look the other way even if they're in the middle of the burning platform

[DieselnDust]

We have seen freight costs also go through the roof. Its going to be a very different world out there for imports in the future.

 

The bold truth is that if you want one you will pay up.

 

 

Partly freight costs are due to MFO spec change. Very Low Sulphur Fuel Oil has been trading at cracks higher than Diesel. Its still higher than Diesel. 

then with ports closed and demurrage costs are higher than ever, imported goods are going to be pricey. Durban is already over loaded

Edited April 22, 2020 by DieselnDust

[Captain Fastbastard Mayhem]

Well the only reason we're at 18.99 is because the markets always run back to the safe currencies when the world goes to shyte. 

When things open up then our commodities are back on the market. At the moment theres just an oversupply of everything, commodity prices tank and so does the Rand.

Every crash has always seen the rand come back strong but then we had that puss Zuma and his thieving parliament.

Even Eskom is seeing the wood from the fire and realising that bail outs are not coming and efficiency has to come soon rather than later. The Window is trying to get go to  backtrack on the job creation mandates that Eskom has to adhere to. 

TradeUnions,....well that lot won't see the fire because they just look the other way even if they're in the middle of the burning platform

 

 

Party freight costs are due to MFO spec change. Very Low Sulphur Fuel Oil has been trading at cracks higher than Diesel. Its still higher than Diesel. 

then with ports closed and demurrage costs higher than ever, imported goods are going to be pricey. Durban is already over loaded

^^this. Not much to add here, except we're in for a rollercoaster of a ride no matter how the virus turns out. 

 

And yeah, the diff in projections is that large. Remember (@Swift) even though we're an emerging economy, we're still an attractive emerging economy with excellent future prospects, if management is good going forwards. 

[Andrew_Smith]

Supply & Demand like Jewbacca stated.

 

I am quite upset, sold my Kickr Core on the Hub for R10k with a cassette in late of 2019. 

 

Now I miss it but the retail price is now at R18k.

 

I paid R13k for mine.

[FrancoisH89]

I can get a kick Snap 2.0 for R7 700? That a good price, I am still new in the IDT.