Price increases of watches, do they really reflect increased costs???

Posted by jhong10
March 27, 2007 - 09:52PM cet
IP : 151.151.73.169
Email : jhong10@socal.rr.com

I have been wondering about price increases in luxury watches.  Here is the states I can see prices increasing due to materials costs, labors costs and the exchange rate due to the weak USD.  But are price increases in Europe the same.  I would think they would be less as the exchange rate should not be a problem??

Watch prices have increased much faster than inflation here in the states and I read of the Luxury industry making record earnings.

Just trying to understand why compaines like Panerai are raising prices from 10-12% this year?  Also all other brands have had rather large increase.

Thanks

Jay