Masiguy does an excellent job explaining what’s going on in the bike industry with price increases. The falling dollar, dramatically higher costs from labor, raw materials, energy and so forth is resulting in significantly higher costs for bike companies while the US and global economy is slowing.
Small player Masi is concerned about consolidation, as well they should be since that’s what happens when the economy slows. There’s some indication that bike sales may go up as people try to save gas money by biking to work and errands, though the more profitable high end of the market will probably suffer.
It might interest you to know that one of the cyclists who was killed by the Sheriff’s deputy in Cupertino the other week, Matt Peterson, was a bike buyer for Wal-Mart. Most of the bikes I see on my commute are still things like Dave’s $100 road bike shown here, available from Target.