SRAM Drops MAP

I’ve been in the industry for over 20 years and this is the first I have seen them do this. Talk about a race to the bottom.

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The inventory glut is real….we first saw it in things like trainers, etc. but now it is gonna hit the industry as a whole.

How bad it will be is anyone’s guess…throughout the pandemic, I thought the industry did well to not over-invest in additional capacity in order to chase the bubble.

Some inventory excess was inevitable based on the massive lead times suppliers were facing…we are now gonna find out how bad the situation is.

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From what I can gather working in a shop its going to be an interesting landscape. The demand for high end bikes and product is still outpacing supply and likely will for the next few months.

The entry level market is a different beast right now. That’s the segment that really boomed during the pandemic and manufacturers shifted production heavily to that segment as a result. However, that is the segment of the market that has crashed the hardest recently, leading to massive oversupply. Cheap bikes like Specialized Rolls are very easy to get, and the low end 7 and 8 speed components are also readily available.

SRAM dropping MAP scares me because once this cat is out of the bag it’s going to be very hard to get it back in. This opens the doors for online mega retailers like Backcountry to slash prices and thin margins in a way that local shops can’t. We already have a lot of customers buying components from them and bringing them in to install instead of doing everything through us and it’s because we can’t compete with their volume and lower margins.

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But when will I be able to purchase 30mm GP5000 S TR ? Been waiting months. :sweat_smile:

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Any chance you have a link to the list of components @Babyruthless ?

Looks like Rival and Force eTap is going to beat up 105 and steal its lunch money for the next few months based on some of the prices I’ve seen today. Was on the fence about moving over to SRAM but seems like a no brainer based on pricing and compatibility with my current frame.

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Forgive my ignorance, but I’ve never heard of “MAP”… Minimum {agreed?} Price???

Is this a US thing?

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Minimum Advertised Price….dealers are not allowed to post prices below the MAP value.

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They sent over a really unorganized spreadsheet that is probably too big to post here. Look hard enough for what you want and I am sure you’ll find some discounts out there.

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Already, looking at top groupsets, new Dura-ace with a power meter crank is 4935 Euro, SRAM Red with power meter is 3465 Eur, and it’s in stock. On another site I’m seeing Shimano Ultegra DI2 with power meter costing slightly more than SRAM Red with power meter.

At the mid range, I’m seeing SRAM Rival AXS with power meter costing 1470 Eur (in stock), 105 DI2 is costing 1575 Eur (and I’d have to buy a power meter on top, and it’s out of stock).

I wouldn’t even be thinking about SRAM vs Shimano if I were building a bike now, it’d be SRAM all the way.

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Any links? I could be interested in an AXS stock up :grin:

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I am not familiar with the workings of the bike industry.
What do you mean by race to the bottom? Do you mean SRAM is so desperate so they drop a mutual agreement about minimum pricing to have an edge over the competition?

I think it means that retailers will lower their prices as much as they can, with large national online stores able to undercut local bike shops.

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This is already the case anyway.

Are high end road groupsets really a lot of LBS business? Can only think of one time in the last 10+ years I’ve bought a major groupset component from a local bike shop and that was because some cargo shorts and t-shirt rider did an impromptu U turn into me while I was passing him and broke one of my shifters the day before a big road trip (yes I called out “rider passing on your left” well in advance of the pass). I think they had to pull one off a bike and charged me a million dollars for the convenience which I didn’t complain about. Really surprised anyone would carry a big stock of mid-high tier groupsets outside of consumables. The guys I know who buy full groups from shops usually have very soft hands and have them installed on new dream builds.

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Is this a general trend or habit among bike producers/component producers? Or does it mean that a red line has been crossed?
Sorry for my stupid questions. I just want to find out why SRAM can be so cheap.

Last month, I went to the LBS, who told me I needed to replace my Shimano brakes, but they couldn’t get the parts. They told me I could try to get them myself, and bring them in for them to install. Found them pretty quick online, and they did the switch (but not before looking at me funny for going from 160mm to 140mm brake rotors).

Yeah I’ve had that where they’ve just told me to buy the stuff online. Since they either couldn’t get it or I could get it cheaper. I think the more successful bike shops in my area would rather get $300+ in revenue for doing a bike fit vs selling shifters for tiny margins on stuff they really don’t add much value for.

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Same in the UK pre pandemic. My LBS told me to get Shimano parts from Wiggle/Merlin then bring them in as then I could get exactly what I wanted for the same price as they buy them straight from Madison.

Since the pandemic and the ongoing parts shortage my LBS wisely stocked well up on Shimano parts whilst many items are still unavailable from the usual online retailers so I’ve ended up buying more from them.

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Funny you say that because the successful shop in my town gets by on ultra-rich boomers who pay full retail on pinarellos and zipp wheels and bring their bikes in to change flat tires. The same shop banned me from using them for service because I bought a d2c bike (canyon) so needless to say I take my business to the more scrappy shops in town who actually want customers.

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