Just an 8 Tooth Cog in the Machine

8t driver (1)

This folks is an 8 tooth cog. These are the tiniest cogs in the bike world and probably in all of machine world too since a gear with only eight teeth is actually a pretty bad idea. The problem is that it’s not really round, it’s basically an octagon so it runs roughly as it’s effective diameter gets bigger and smaller between each tooth. In freestyle BMX though, such tiny cogs are handy because they enable making a useful gear ratio with a tiny chainring… one that won’t get bent in half when a rider smacks it onto a stairway railing or priceless sculpture.

Anyhow at times like this we at WorkCycles feel a little like that little 8 toother: Handy but basically just a minuscule cog in the giant financial machine. A handful of power brokers work the controls and we spin around, trying to do our thing. My understanding of such matters is limited but I read that the powers that be decided it would be good to turn on the presses and print a whole lot more Euro money. Of course the total real value of that money hasn’t actually increased; It’s just been divided into smaller units. In other words printing more money makes whatever money you already have worth less. I suppose the saving grace is that I don’t have any money to lose value.

Oh and then there’s that exchange rate thing, the reason I’m driveling on about this. Now with more, less valuable Euros in the world, a Euro becomes less valuable in comparison to other currencies. In our case the US Dollar is the issue because the parts of the world that make lots of stuff sell their stuff in US Dollars. WorkCycles bikes are NOT made in one of those countries but some of their most expensive parts are: gear and dynamo hubs, rollerbrakes, some frames, cranks, pedals and other smaller components.

eur-usd-exchange- apr-2015

That above is the relationship between the value of a Euro and a Dollar over the last year. One Euro is worth approximately 30% fewer Dollars than a year ago. Alternatively you could say that the roughly 25% of a WorkCycles bike’s contents purchased in Dollars now costs 30% more for us Euro money wielding Dutch folks to purchase. Being a little company competing against giants our profit margins are already pathetic. We wrestle each year with where to set our prices so that our bikes are a good value for end customers, our dealers can earn a living from their margins, and we can pay our own employees and bills. It’s been apparent that considerable price increases would be necessary and and making them suck is not an option we’ll ever entertain. We delayed the inevitable as long as possible and have finally pulled the trigger: As of April 2015 WorkCycles bike prices are increasing approximately 10% instead of the usual yearly increases of a couple percent. We’ll honor quotes with the old prices from March 2015 so if you have one of those in your hands you’ve got about three weeks to to say “YES! and get a great deal”. On bikes sold to dealers our margin is so small that the new prices unfortunately have to apply to all new orders. I’ll be mailing those out shortly.

That was the BAD news. The GOOD news is that WorkCycles bikes are now about 30% cheaper for those of you outside Euroland! We pack and ship our bikes almost everywhere (except when it competes with our active dealers). Here are a few examples of the more exotic or unexpected destinations for WorkCycles bikes in the last year or so: Bahamas, Brazil, Chile, Cyprus, Seychelle, Iceland, Indonesia, Japan, Kazakhstan, Mexico, Nigeria, Romania, Russia, Singapore and Texas. Of course most WorkCycles end up in more predictable locales throughout Europe and North America.

With that out of the way here’s my four year old cutie doing what she loves best: riding her bike.

Amsterdamse Bos Bike Trip 2-2015.13

2 Responses to “Just an 8 Tooth Cog in the Machine”

  1. Victor Says:

    Hi Henry
    Sorry to hear about the exchange rate. But, being in the USA, I’m interested in any delays in shipping. Any news on that front? All the best. Victor

  2. henry Says:

    Victor, The fluctuations in exchange rates normally have no influence on our lead times.

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