Why gym equipment prices will keep rising
Raw material prices are increasing. Shipping costs are increasing. Importing equipment is more difficult. If you plan to build a gym, now is probably the time.
The events of 2020 were unexpected. It was a punishing year for gyms across the world that were forced to close their doors to their members. Demand for gym equipment soared and households invested heavily into home and garage gyms. The urge for home gym equipment took off like wildfire. Gym equipment sales more than doubled and many retailers couldn’t fulfil the growing consumer demand and ultimately were running out of stock.
The explosive sales growth brought on by the pandemic has in turn had a huge impact on other connected fitness companies including suppliers, manufacturers, and the rest of the fitness chain. Many consumers were surprised to find that the prices started increasing and gym equipment especially dumbbells and kettlebells were not easy to find.
The price increase is mainly due to the fact that some of the gym equipment is manufactured in China, and the prices in China have an impact on global market prices.
With the sharp increase in cargo volume and prices, it was extremely difficult to reconcile the shipping space and so logistics channels were naturally being pushed beyond capacity.
The main reasons for a price increase are as follows:
Stock and supply issues led to an increase of raw material prices
Increase in demand has led to a shortage of raw materials, which in turn has driven up the product prices. This year, the prices of raw materials have increased nearly threefold compared to previous years.
The increase in logistics cost
The logistics industry has been under extreme pressure throughout the pandemic and the cost of moving goods and services has risen sharply. Prices for container vessels have more than tripled since March 2020, particularly from the Far East compared to pre-pandemic years and is more than likely going to continue increasing for the rest of 2021.
Will the prices fall in the future?
Prices will not fall in the near future, instead suppliers and manufacturers have no choice but levy a price increase directly attributable with production costs as well as the huge transportation costs. Cross border logistics will only get worse in terms of prices, transportations and lead times for the foreseeable future.
Beat The Increase
Here at FitKit UK, we have been investing heavily throughout 2020 and 2021 in buying more stock than we have ever had before so that we can protect our customers from the continual price rises along with any other short term price increases.
With more than 70,000sq ft. of warehousing space, we’re proud to hold the highest levels of UK stock and widest selection of brands, allowing for the fastest delivery and installation within just 7 days.
FitKit UK are proud to be the No1 new and used gym equipment suppliers and installers in the UK approved by major brands like Life Fitness, Hammer Strength, ICG, Precor and Matrix.