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décembre 17, 2021 2 lecture minimum
From the beginning of our company’s journey, our goal has always been to make our bikes as affordable as possible. We are so glad to see that many of our customers have acknowledged this in their feedback and public comments: our favorite one has been, “50 Rebels is the best bang for the buck.”
We are determined to still be ‘the best bang’ but with recent developments all over the European Union, we have to ask a bit more ‘buck’ for our ‘bang.’
This is for the following reasons:
In recent months, the prices per TEU have been literally exploding. In our case, we now have to work with 4-8x the shipping costs we had one year ago. On top of the raised shipping costs, the delays of several months in shipping time due to clogged ports in Asia have been becoming standard. A stretched supply chain means extra financing costs for us as well.
In our case, the main issue is the raised steel prices of the last months. Our bike frames are made of steel and we now have to take a 20% increase in costs for the raw material. That cost, plus prices for cartonnage and electronics that have been increasing as well, makes the situation worse.
With increasing production capacities, we were counting on economies of scale for the sourcing of our bicycle parts like brakes, shifters, tires, etc. For the last 18 months, the market for those parts has been dry, making it a challenge to be able to build complete bikes throughout 2020 and 2021. However, we are thankful and proud to have the right partners to keep supplying us and making the impossible possible time and time again. Our economies of scale now enable us to keep those costs steady, instead of them increasing.
I’m sure all of you have already been hearing and seeing the news about the inflation rate in Europe. Prices are going up in all parts of life and the only thing that hasn’t been keeping up with that rate is the salaries. This sucks big time, we know! We now must raise our prices to keep being able to pay our employees and keep growing to make more bikes.
The good news: we will keep our current prices for everyone where they are, until the end of next week.
After that, we will have to finish all the discounts and raise the base price of our bikes on 01.01.2022.
We are sorry that it has come to this and really hope to be able to lower our prices again if the situation normalises itself in 2023.
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