Monday, November 8, 2010

Trek Pricing

Who would have thought that we would be posting something financial on the M1 Cycles blogsite????!!!! Anyway, unless you've been living under a rock for the past month or so, you'd know that the Aussie Dollar has now surpassed the strength of the US dollar.

Because of the strength of the Aussie Dollar, if the question has been asked once, its been asked a thousand times - Shouldn't the prices of the Project Ones / Trek bikes now be cheaper than the price shown on the US Trek website??

Here is the response from Trek:

The price given on the US site does not include the individual USA state taxes - which can be up to an additional 20%.

Remember also, that someone has to pay the freight and insurance costs to get them across the US and into Australia.

The US Government applies a Duty (tax) on the bikes leaving the USA.

But wait, theres more - in Australia, Trek still has to pay GST on the bikes + another lot of insurance and freight costs to get the bikes to M1 Cycles.

The price on the Australian Trek website are the RRP - what you will pay.

Keep in mind that if you look at the Australian market, Trek bikes are super competitive and the manufacturing and material technolgy that goes into the frames and components are second to none!