Ask the trade: Has higher pricing prompted consumers to seek second hand bikes?

There are very few products in the market that have not already been affected by price rises. Whether it’s the knock on effects from increased shipping or commodity costs, or simply the inevitable impacts of out of whack supply and demand, CI.N research shows bike shops are noting consumers tightening their purse strings. Will this prompt consumers to seek out second hand bikes? We ask the trade…

To what degree do you think that pandemic bought bikes are still in use and could the second hand bikes market now have better viability while consumer budgets tighten?

Gavin Hudson, Butternut Bikes

We’d love to refurbish and sell on second hand bikes, but it’s not worth the time in most cases. Imagine we buy or are given a bike, we spend an effective £100 worth of time and parts (say an hour of labour, minimum), in order to do it up to sell. We then sell it for £150 and then there’s time in selling the bike, handing over, warranty etc. It just doesn’t work; we wouldn’t want to sell bikes that aren’t of a quality of a bike that we’ve serviced in the shop, so we can’t just flip them.

Some mechanics do this on the side and we’ve got a pile of second-hand bikes for any interested people who want to get into repairing bikes to practice on and make some money. Having said all that, the price increase of new bikes seems to have increased demand to repair, rather than replace bikes. Spending £300 to repair a bike that cost £400 when new makes more sense when an equivalent new bike is now £600 and will likely have a mish-mash of parts built down to a cost.

Ross Kempson, Cyclex

It’s difficult to know what’s going on in people’s sheds but we have had more enquiries recently from people who bought bikes from different retailers during the pandemic and are now wanting to sell them. The reasons for this are anything from not using them as much as they did during lockdown to people who bought cheap bikes, shifted their habits to cycle more regularly and now want to change to a more appropriate size or style. I understand that Decathlon are now selling second hand bikes as part of a proactive trade-in campaign. We also consider trade-ins on a case-by-case basis as there has never been a very sophisticated used bike market akin to cars and motorbikes. Perhaps this will change now higher value eBikes constitute a bigger share of the bicycle marketplace.

Len Simmons, Highway Cycles

It is not easy to tell. There is always a market for second bikes, but this has been balanced by the shortage of specific models of new bikes. Still, we are seeing more awareness around cycling and the benefits it can bring for you and your family in ways that were never really thought about before Covid.

Has the UK mindset shifted at all on the value and cost of a bicycle or eBike, or do people still see bikes as ‘too expensive’?

Gavin Hudson, Butternut Bikes

It’s certainly hit at the cheap end as a percentage of costs where you’re mainly shipping ‘air’, like wheels and kid’s bikes. 14- inch Ridgeback bikes are £349 now and customers really aren’t happy to pay that. People are prepared to pay more for an eBike, but the waters are muddied by the cheap hub drive models. It’s painful when a customer comes in with a broken £1,000 eBike. It’s not cheap to them, but it’s not repairable either; that’s a really difficult conversation to have. We haven’t really reviewed our prices on workshop consumables nor labour, that will be a big test when we do. There’s also pressure to increase wages and I need to recruit a new mechanic (if anyone is looking!).

Ross Kempson, Cyclex

Most of the price sensitivity we encounter is internal from staff being surprised at the scale of the increases. We don’t cater for the budget market in stockholding and our main retail store has shifted the average price point upwards, so the target customer is expecting to pay more for what is an important purchase for their needs.

Most people’s expectations about price increases seem to have aligned from every other retail experience they have, especially in the supermarkets which have been widely publicised. Personally, I have a suspicion that a lot of the traditional enquiries revolving around price and specification seem to exist in the buying public that are less willing to buy bikes online, so possibly the older demographic. I feel a lot of the savvy customers are well rehearsed in online research and then tracking down their chosen bike from an online retailer. I think this is less so with electric bikes and some brand loyal customers who appreciate the personal service of an IBD.

Len Simmons, Highway Cycles

I think bikes are finding their place in the transport arena. Prices are pretty relative, with many other costs rising. This, coupled with sustainability awareness and the mental and physical benefits of cycling, still support a strong argument for considering a bike over other forms of transport.