Swiss franc exchange rate, part 3: Prices are falling
For a parts and bike supplier or a specialist retailer, the situation has been tricky since the minimum euro exchange rate of 1.20 became obsolete on January 15, 2015: some warehouses are well stocked with current 2015 goods, but these goods were still purchased at the old 1.20 exchange rate. If prices are now lowered, this is tantamount to a significant write-down. Depending on the contractual relationship, this even goes so far that even goods that will only arrive in Switzerland in the next few months have long been prepaid at the old exchange rates.
The situation is different for goods that have been imported into Switzerland in the last few days, particularly from the eurozone, and are invoiced at the new exchange rate: Here, the importer can realize a price reduction without a markdown.In addition, US dollar currencies such as the Japanese yen, the Taiwan dollar or the British pound and their relationship to the Swiss franc play an important role in pricing in the Swiss bicycle industry. The price level abroad also plays a role in pricing for Switzerland.When will prices rise in the EU?Due to the sharp rise in the US dollar against the euro, industry experts suspect that price increases are imminent in the EU. According to predictions, prices in Germany will rise at the latest when suppliers there run out of stock and new goods have to be procured - the large canton is under particular scrutiny with regard to price levels and shopping tourism.
Price reductions of 10 to 15 percent
Bicycle parts are becoming cheaper for Swiss bikers, here is a free selection of suppliers who have lowered their prices in line with the current exchange rate development:
The supplier Indian Summer has opted for a universal price drop across the entire range - regardless of the currency in which the goods were purchased. Brands such as Norco, Bliss, DMR, Hiplok and Odi are affected by the price reductions - and a pedal from Indian Summer's own brand serves as a concrete example, which now costs 25 francs instead of 29 francs.
The custom-made expert Koba is also reducing its prices. Prices are being successively adjusted downwards in line with the latest incoming goods. For example, brakes from Shimano's SLX and XT series have recently been delivered for the bikes from the Rhine Valley and Koba is passing on the currency advantage to its customers.
Amsler is reducing the prices of Magura, Kinetic and Vredestein products purchased in euros by 15%. Prices for Zipp wheels will fall by 8%.
At the distributor GPR AG, all Shimano items purchased in yen will fall by 10%. The prices of goods purchased in euros will fall by 12% - affecting brands such as Abus, Campagnolo, Look, Contintental, Selle Italia, Schwalbe and SKS.
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Note: This content has been automatically translated from German. Please report any incorrect translations.