Biggest e-bike company Rad Power Bikes says it needs to raise prices
Seattle-based Rad Power Bikes just emailed its customers and subscribers, announcing that prices will increase on its line of e-bikes from the end of this year.
Prices for e-bikes have followed a roller coaster ride this year.
In the spring of 2021, prices were generally increasing in all areas. We discussed how a number of pricing pressures are affecting the industry, from shipping prices to currency exchange rates and more.
But in September, many companies had already started to lower their prices again after a slight drop in sea freight prices.
It seemed like industry-wide price hikes were in the rear view mirror, but today’s announcement from North America’s largest e-bike company calls that into question.
Rad sent the following message this morning:
At Rad, our mission is “to deliver an unmatched customer experience with radical e-bikes that are built for everything and at a price for everyone.”
Over the past 18 months, we have taken creative steps to overcome the global supply chain crisis. However, these challenges have made it much more expensive to build and ship our e-bikes and accessories. In light of this, we have made the difficult decision to increase prices for the entire Rad line from December 29, 2021.
These new prices will allow us to continue our commitment to offer only innovative and high quality products. Plus, with flexible financing options, free shipping, and our direct-to-consumer business model, Rad Power Bikes will remain one of the easiest ways to get around.
Our current prices will be active until December 29th. If you have an eye for an item, we have the highest level Rad e-bikes, parts and accessories in stock we have seen in the past few years.
We will end the year with over 700 passionate employees and are ready to support all of our existing customers and empower the hundreds of thousands of new riders we hope to join in the new year. We appreciate your understanding regarding these price changes and are proud to be your partners. We look forward to continuing to ride together until 2022 and beyond.
Rad Power Bikes is often viewed as an indicator for the entire industry. Not only have they raised far more money than others and produced more e-bikes than anyone else, their products and pricing structure are regularly copied throughout the industry.
The size of the company has helped it weather storms in the past that have hit smaller market players harder. During the height of the shipping crisis, Rad was even able to buy his own containers and shipping vessel to ensure a constant supply of continuous e-bikes as other companies were stuck with empty shelves.
But now it looks like even Rad is forced to make adjustments due to the continued pressures on the e-bike manufacturing industry.
The news comes after the company unveiled two new premium e-bikes this year, the RadRover 6 Plus and the RadCity 5 Plus, both offering a wide range of new features never seen before at Rad. Both also used premium parts designed for better quality bikes, while also pushing up the prices over what we’ve seen from the company before – up to $ 1,999 for the RadRover 6. More off-road. This was in stark contrast to the $ 999 RadMission e-bike, which the company developed last summer to maintain a strong supply in the critical category of e-bikes under $ 1,000.
The company has yet to announce what the new pricing structure will be for its e-bikes once prices increase at the end of this month.
This information should be available on December 29.
Suffice it to say, if you’ve been thinking about picking up one of Rad Power Bike’s e-bikes lately, now is the time to check out the company’s sales before the prices go up.
It is never fun to see an increase in prices in the electric bike industry, especially since these are already expensive purchases.
Many people buy e-bikes to replace car trips, so e-bikes often help owners save money in the long run. But the upfront costs can still make e-bike purchases hard to swallow.
Rad has grown so much over the past two years, doubling, tripling and quadrupling in size while investing heavily in increasing production rates of e-bikes. It’s not cheap, but the company has also raked in hundreds of millions of dollars in investments over that time frame.
On the other hand, when costs increase, companies that need to maintain their bottom line may either increase prices or reduce quality to maintain prices. Everyone knows there are options that are cheaper than Rad, so it makes sense that the company would rather maintain the quality they are known for, and I’m glad they did. Otherwise, it becomes a race to the bottom. Rad might not have the same level of quality as a high-end company like Specialized or Trek, but they come at a fraction of the price of those e-bikes that often start between $ 3,500 and $ 4,000. Compared to budget options at the other end of the spectrum, Rad has long been a great quality Goldilocks solution for a modest price tag. Not too cheap but not too fancy either.
And while some cynics have claimed e-bike companies will start raising prices before a potential $ 900 e-bike tax credit currently makes its way into the US Senate, I don’t think that’s what. we see here.
My bigger question is if this is an isolated incident related to Rad’s explosive growth and investment in its own production and customer service nationwide, or if other companies electric bikes will follow suit with higher prices.
What do you think? Let us know in the comments section below!
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