Specialized says exchange rates and inflation forcing a mid-season price hike

By Stephen Frothingham

MORGAN HILL, Calif. (BRAIN) — Specialized will increase wholesale and suggested retail prices on select 2018 model year bikes starting on April 15. The company announced the change in a recent letter emailed to its dealers.

The increases range from as low as 1 percent to as high as 12 percent. Models affected include fitness, youth, e-bike, mountain and road categories, as well as various price points.

Specialized pointed to a devaluation of the U.S. dollar against Asian currencies over the past 12 months, which has inflated costs for its products. And it can no longer continue to absorb the costs entirely, the company said.

“To be precise, the dollar has weakened by 8 percent against the Japanese Yen, the New Taiwan Dollar, and the Chinese Renminbi since January 2017 and is forecasted to weaken further. Our teams have worked very hard to defer the negative impact on U.S. market pricing, and up till now, Specialized has absorbed the entire impact of these higher costs,” the letter said.

“However, from next month forward, we will begin to pass on part of the increased costs by increasing both wholesale and retail prices on bikes. We will minimize the impact by including only select 2018 …read more

Via:: Bicycle Retailer and Industry News