Don’t forget consequences of chasing down prices, urges trade veteran

Thursday, 28 July 2022 Mark Sutton

A bike industry veteran with Thun has today issued an impassioned plea to the trade not to forget the consequences of focusing only on lowered prices.

Dalibor Horvacki, the Sales and Technical Advisor at OEM parts supplier Alfred Thun GmbH today penned an open post to the industry on the back of what he says have been “disappointing” conversations and a “narrative change” back toward old habits in recent months.

“With all of the material and energy price increases in Europe the makers here just can’t compete now with the prices in Asia, China which is sourcing cheap energy in the last four months especially. You know what I am talking about,” he starts.

Referencing a general feeling of solidarity that permeated the European bike business at the start of 2020, Horvacki had praise for a coming together around sentiment based on improving sustainability practices and nearshoring production in order to get control of a brand’s destiny in the face of challenges sourcing from far away.

“A lot of moral questions should be asked,” he continues. “Why did we all market ourselves this way if we don’t mean it? How much is our word worth? Is it 0.1 euro or 0.05 euro these days? Who are we financing with our decisions to purchase cheaper these days? After doing this, what do we expect from makers here in the future? Do you think they will forget this?”

There are not just complaints, but solutions, namely maintaining the spirit of close collaboration. This was a central theme of high-level conferences at Eurobike that demonstrated the worth of industry collaboration and sharing. This open-minded practice, according to a number of industry leaders speaking during the event, has led to much improved political sentiment to cycling politically and subsequently unlocked funding.

Dalibor concludes with his solutions, writing ” I sincerely urge everyone to talk to each other and find solutions together, not just to turn away and look at the price only! Think before you act and get the big picture. (The) situation is tough, but buy what you need, when you need it. Discounting won’t save your company, it will only ruin the market and the industry. You will maybe sell 5% more, but destroy your profit, as well as others. It is time to be innovative and this is what we do best!”