Earlier this year we wrote two blog articles explaining the stress that the cycling industry is under due to COVID and the supply chain constraints. Since that time things have only gotten worse for the entire industry. This article addresses the ongoing issues and regrettably, announces a price increase for all FLO wheels, though we still remain a more affordable option than our competitors.
Raw Materials
Unfortunately, raw materials pricing and lead times have continued to increase. We have received price increases from our factories for the fist time since starting this business. There are a few factors causing the price increase.
Printing Of USD
The printing of the USD has weakend its strength relative to the currencies used by our factories to purchase goods. Since we pay in USD, they are not able to purchase the same amount of raw materials for the same amount of USD.
Supply And Demand
The laws of economics are at play here. Demand is continuing to rise and supply is struggling based on COVID restrictions. When demand is high and supply is low, prices goes up.
Lead Times
Over the last 10 years of running this business, our lead times for any parts were 60 days. Today, we are approaching 9 months for certain parts. Our order to door time used to be about 5 months when you added the combined lead times for components and shipping times from our factory to our fulfillment center, today, lead times are close to a year.
Ocean Freight
Ocean freight is currently in an extremely stressed state. Last week I read an article that discussed the record breaking 44 ships waiting in the ocean to dock at the Port of Los Angeles. The world has never seen a shipping issue like we currently have. We are seeing this in timing and pricing.
Normally, once ocean freight was arranged, we would receive wheels at our fulfillment center in Michigan in 5 weeks or less. Today, we are pushing 12-15 weeks.
The shipping price to get our wheels to the US have increased 8 times higher than this time last year. This increase alone warrants a price increase.
Customer Service
This is a bit of an opinion I have regarding the world and the current supply chain issues. Regardless of what we at FLO have tried to buy, we are finding delays every where. We recently had a fridge that needed to be replaced and the model we need has a 6 month lead time. And it’s a standard model. Bike parts, tools, vehicles, etc. it’s all backordered.
Another thing I’ve personally noticed is that it seems as if customer service is gone. If you can get someone, the response is we are backordered and I don’t know when you will get it. There doesn’t seem to be anything beyond those words.
We’ve always done our best at FLO to provide great customer service. Communicating with our customers has been key. We don’t want to be a company that cannot help you out during this time. Often times we have options. We can air ship from our factory to cut lead times, we’re constantly updating our site so show accurate lead times and we are sending emails as well. If you have a need please reach out. We can explore the options and let you know the costs associated.
At times, we simply do not know the answers. Lead times and updates can happen multiple times a day which makes keeping you in the loop tough. We will however do our best.
FLO Wheel Price Increases Effective 10/01/2021
Unfortunately, we have to increase the price of our wheels. This will take effect on 10/01/2021. We will however hold our current prices for the next two weeks so you have the option to buy anything you like before we increase our prices. This means backordered items as well. Below is the new price list for each wheel.
FLO 49 AS and FLO 49 AS Disc
Front Wheels: $674 to $724
Rear Wheels: $724 to $774
FLO 64 AS and FLO 64 AS Disc, FLO 77 AS and FLO 77 AS Disc, FLO G700, & FLO G650
Front Wheels: $719 to $769
Rear Wheels: $769 to $869
FLO 60 Aluminum + Carbon & FLO 90 Aluminum + Carbon
Front Wheels: $599 to $649
Rear Wheels: $649 to $699
FLO DISC Carbon Clincher & FLO DISC Disc Carbon Clincher
Rear Wheels: $1,199 to $1,349
FLO DISC Aluminum + Carbon & FLO DISC Disc Aluminum + Carbon
Rear Wheels: $849 to $999
source https://blog.flocycling.com/news/the-cycling-industry-and-the-economy-2020-2021-part-3/
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