$4 / gallon

I suspect the most common question that people in the bike industry get these days would be something along the lines of "bet this $4 gas is great for your business, isn't it?". On the surface, it might look like it but I am not so sure. Bikes are still typically a discretionary purchase. Most people don't "need" a bicycle like they need food. Since most folks have already succumbed to the urban sprawl, and moved 20+ miles from their chosen place of employment, most don't consider commuting a viable option. So $4 a gallon it is, thank you sir may I have another. There goes another $25-$30 out the tail pipe a week and there goes your discretionary, aka bike, funds. And even if your job is on solid ground, the constant background noise about the economy circling the drain works its way into your conscience even if it is just by osmosis.

What we have noticed is increased repairs and accessories. People that bought bikes in the last decade, and let them become garage ornaments, are dragging out the remains to have them rehabilitated. The margins are pretty good on this stuff but it can still be relatively small dollars when compared to full bike sales. Of course, bike parts are getting more and more expensive and it seems like tire/tube prices are tied directly to the price a a barrel of light sweet crude for September delivery (not really sure what that means but it apparently hits a new high on a daily basis now).

There has been the slightest hint of an increase in bike trips but it has mainly been folks who already used a bike for recreation ,which doesn't help the bike shop bottom line to any large degree. We have talked about the tipping point and wondered where it will be........$5 a gallon, $6 a gallon or the $7 they talked about on the radio this morning. What will it take to get more people using bikes for "work" as opposed to "play. Stay tuned, we may be finding out soon.