-December 14, 2021, 9:00 AM Pacific Time

Seattle-based Rad Power Bikes has just sent an email to its customers and followers announcing that starting from the end of this year, the price of its electric bike series will increase.

The price of electric bicycles has been rising this year.

Back in the spring of 2021, prices generally rose across the board. We discussed how many pricing pressures affect the industry, from transportation prices to exchange rates and more.

But in September, many companies have begun to cut prices again after shipping prices fell slightly.

The price increases witnessed by the entire industry seem to be in the rearview mirror, but today’s announcement by the largest electric bike company in North America questioned this.

This morning, Rad sent the following message:

At Rad, our mission is to "provide an unparalleled customer experience and build radical electric bikes that are applicable to everything and priced for everyone." 

In the past 18 months, we have taken creative measures to weather the global supply chain crisis. Nonetheless, these challenges make the manufacturing and transportation costs of our electric bicycles and accessories even higher. In view of this, we made the difficult decision to increase the price of the entire Rad product line from December 29, 2021. 

These new prices will allow us to continue to commit to providing only high-quality and innovative products-in addition, with flexible financing options, free shipping and our direct-to-consumer business model, Rad Power Bikes will remain the most cost-effective One of the ways to get around on the bike. 

Our current price will be valid until December 29th. If you are concerned about a certain item, we have stocked electric bikes, spare parts and Rad accessories, the quantity of which is the highest level we have seen in the past few years.

We will end the year with more than 700 passionate employees and are ready to support all our existing customers and provide support for the hundreds of thousands of new riders we hope to join us in the new year. We thank you for your understanding of these price changes and are proud to be your partner. We look forward to continuing to ride the Rad together in 2022 and beyond.

Rad Power Bikes are generally regarded as an indicator of the entire industry. So far, not only have they raised more funds than others, they have also produced more electric bicycles than anyone else, and their products and pricing structures have often been copied by the entire industry.

In the past, the size of the company helped it weather the storm, and the storm had a more severe impact on the smaller players in the market. At the height of the shipping crisis, Rad was even able to purchase its own containers and transport ships to ensure that the stable supply of electric bicycles remained unimpeded when other companies' shelves were empty.

But it now appears that even Rad has been forced to make adjustments due to the continued pressure facing the electric bicycle manufacturing industry.

The news came after the company launched two new premium electric bicycles RadRover 6 Plus and RadCity 5 Plus this year, both of which provide a wide range of new features that Rad has never seen before. Both also used higher specification parts made for higher quality bicycles, but the price was higher than what we had seen from the company before-the off-road RadRover 6 Plus was priced as high as $1,999. This is in stark contrast to the $999 RadMission electric bike, which the company developed last summer to maintain a strong product supply in the key electric bike category under $1,000.

The company has not yet announced a new pricing structure for its electric bikes following the price increase at the end of this month.

This information is expected to be available on December 29.

It can be said that if you have been considering buying one of Rad Power Bike's electric bikes recently, it is time to check the company's sales before the price increases.

It has never been interesting to see price increases in the electric bike industry, especially since these are already expensive purchases.

Many people buy electric bicycles to replace cars for commuting, so in the long run, electric bicycles can usually help car owners save money. However, the upfront cost will still make the purchase of electric bicycles unacceptable.

Rad has developed rapidly in the past few years, doubling, tripling or even quadrupling its scale, while investing heavily to increase the productivity of electric bicycles. This is not cheap, but the company has also received hundreds of millions of dollars in investment during this period.

On the other hand, when costs increase, companies that need to maintain the bottom line can maintain pricing by raising prices or lowering quality. Everyone knows that there are cheaper options than Rad, so it makes sense that the company would rather maintain its well-known quality, and I'm glad they did. Otherwise it will become a race to the bottom. The quality of Rad may not be as good as that of high-end companies such as Specialized or Trek, but their prices are only a fraction of those electric bikes that usually start at $3,500 to $4,000. Compared with the budget options on the other end, Rad has long been a Goldilocks solution that provides excellent quality at a moderate price. Not too cheap but not too fancy.

Although some cynics claim that electric bike companies will start raising prices before the potential $900 electric bike tax credit is currently being passed in the U.S. Senate, I don't think this is what we are seeing here.

My biggest question is whether this is an isolated incident related to Rad’s explosive growth and investment in its own production and national customer service, or whether other electric bike companies will follow suit and increase prices.

what do you think? Let us know in the comments section below!

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Rad Power Bikes is the largest e-bike brand in the United States, specializing in providing high-value, low-cost e-bikes for casual riders and commuters.

Micah Toll is a personal electric car enthusiast, battery fan, and the author of Amazon's number one bestseller "DIY Lithium Battery", "DIY Solar" and "The Ultimate DIY Electric Bike Guide."

You can send him a reminder via Micah@electrek.co

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