The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-11
THE FURRY IN WHEELS
BICYCLES OFFERED VERY CLOSE
TO THE COST OF MANUFACTURE.
The Day of the S1Go Cycle Over-Con-
servatism Among the Big
Firms This Season.

Those who know and are willing to speak
are of the opinion that the present furry
in the local bicycle market has been ex-
pected for some time by the large dealers.
1t was foreshadowed by the strictness with
which the cash or good security method of
dealing was adhered to in the retal BUSH
ness, and the scrutiny with which orders
from dealers was handled by the whole
salers. All through the season the greatest
conservatism has been observed in the BIZ
cycle trade. While 1t is not generally
known, it is a fact that there has been
feeling of uncertainty all along the line, as
If the dealer never knew Just what moment
the reverse would come to him.
Whether the local bicycle people foresaw
this present condition, they certainly felt
an impending danger that only the closest
conservatism could protect them from.
AS an instance Of the methods, there is
one concern in the city which last year sold
many more wheels than this year, and
doubtless got a better return in the way of
profits than this year, but the business,
while not to be called loosely carried on,
was less carefully scrutiniZed. Goods We're
billed outside the city to parties whose
credit appeared to be good, and here at
home wheels We're sold on credit and on
payments to almost anybody who could
make first payment of a few dollars. Nat
urally, where the credit side o: the business
was done in this style, the debit side was
in about the same condition, and the COM
pflny was heavily indebted for various sup
plies used in the manufacture of wheels.
This year an entirely different course has
been pursued Goods wholesaled were sold
only on short time or for cash. and when
=, Nun
or Bradstreet had to be pretty we'll up to-
ward the first letters of the alphabet.
Goods retailed were sold either for cash or
on installments only to people furnishing
the best references and able to pay large
per cent. of the purchase price when the
wheel was delivered. Now, at the close of
the best of the seasons trade, this COM
pany has very little on it's books that is not
gilt-edged, and it's accounts outstanding
could almost be paid by days receipts.
This house and others are in this condi-
ton to-day-solid and safe beyond any pos
sible changes in the wheel business.
The present furry means that the day Of
the 500 general purpose bicycle is past. It
may be many years before there will be
wheels at this price and even higher manu-
featured and marketed but the wheels will
be for racing purposes or for the fastidious
and the rich who are willing to pay for
ornaments and other things which Go not
add to the strength, durability or easy
running of the machines. The price of the
everyday wheel for the multitude could not
remain at $100 and will never again reach
that figure. 1t was strange perhaps that a
few manufacturers should have persisted in
trying to hold the price up to that point
1t is likely that the people of Indianapolis
will be able now to purchase good bicycles
cheaper than ever for the prices at which
good wheels are now being offered is
ridiculousIy close to the price Of actual
manufacture, without allowing anything
for marketing, which is no small item; but
after this furry is over prices will doubt
less settle down, like those of other COM
lnodities, to a reasonable price, allowing
the manufacturer a fair profit after paying
living wages to employees, and here it will
remain. The trouble with the bicycle busi-
ness is there have been some cheap and
worthless wheels on the market which were
dear at any price,, and these have been pur-
chased at prices which seemed very low
compared with the price of good wheels.
The people were cheated in these goods
and when reputable manufacturer put a
wheel on the market at competing price
his goods were condemned as on a par with
the worthless stuff onewhich the people had
been swindleG. A reputable manufacturer
dared not put his product down to a fair
price. He would at once be accused of
fraud and cheating. The break in this state
of affairs has come at last and ere long
competition will have fixed the retail price
of good wheels at a point as close above
the price of manufacture as they can be
sold.