TicTacTalks ForumPosted 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
Posted by amanico
March 27, 2007 - 11:20PM cet
IP : 81.57.232.190
Email : amarillifondaneche@yahoo.fr
In Europe:
Patek: Twice, in Past August and February.
Rolex: 3 months ago.
We are waiting the new list prices from panerai, and we'll see what will happen in a few days, now.
I'll keep you informed.
As for the reasons of the prices increases, I think it's often blablabla...
Why in this case Patek made its price increase Twice in 6 months???
I'm afraid the companies are treating their clients as milk cows...
Just my 2 sheckels!
Posted by jhong10
March 28, 2007 - 06:07AM cet
IP : 72.134.40.15
Email : jhong10@socal.rr.com
I believe that Paneria is increasing on average 10% with some models being increased by 12%, the 249 is going from $5800 to $6500 on 1 April. I guess Panerai saw the demand and is taking advantage, even though most 249's are not yet available.
I guess I will have to be a bit more selective on what pieces i purchase.
Posted by YvesOdier
March 28, 2007 - 12:28AM cet
IP : 86.203.30.97
Email : yves.odier@wanadoo.fr
Long is gone the day that each company was a company fighting competition and share of the market, most brands are now the property of groups so a study and regular yearly price increase is solely to capitalize stock's asset and to maximize revenue just like that... Across Europe inflation is averaging a max. 3% yearly... and most salaries see their increase once every 3.6 years. By regrouping all those brands under a few roofs making cost should be at least maintained.
So the reason, well I see one, slowly and surely, it will tire old markets, because it is securely narrowing down those that can follow or justify those rules at toptop paid level! ...and in most cases craftsmanship has gone out of the windows!
One of the long established watch company... increases their prices every 3 years, this seems fair, square, justified and acceptable!
Anyway for myself, and I still presently consider myself one of the lucky, what I see coming in the future years ahead is that my passion will have a limited price.
Posted by amanico
March 28, 2007 - 05:16AM cet
IP : 81.57.232.190
Email : amarillifondaneche@yahoo.fr
Well said, my friend.
May I add that for me also, I see the future in a negative way, and not only for prices...
The interest of the new watches is poorest from day to day...
See for example the new IWC: BP, Portuguese,etc... They are less interseting than the older same models, less well designed.
Lange???: Same observation.
Panerai???: I is loosing its soul: An "in house"tourbillon in a military watch? What a joke!
Some brands are going up, like JLC and U.N for example, and fortunately for us !
What are your thoughts?
Posted by Asi
March 28, 2007 - 01:37PM cet
IP : 62.219.163.36
Email : asimut@gmail.com
then other product lines in terms of demand.
Many of them are to a point 'Credence Goods'. These display a direct (rather than inverse) relationship between price and demand. Increse the price and you increase demand....
This can be found also in 'Giffen Goods' which maybe applicable to some brands, LOL>
A product is a Giffen good if a rise in its price makes people buy even more of the product.
There are three necessary preconditions for this situation to arise:
Cheers,
~Asi~
Posted by amanico
March 28, 2007 - 01:45PM cet
IP : 81.57.232.190
Email : amarillifondaneche@yahoo.fr
Posted by YvesOdier
March 28, 2007 - 02:32PM cet
IP : 86.214.84.204
Email : yves.odier@wanadoo.fr
I understand demand and related prices, but hey are we all 12 years old for ever... And do we not deserve some proper workmanship to reward our paid efforts and passion? I love the packaging, a lot of efforts are going into for the last 10 years, but it is watches that we wear! Now we can see who makes the astonishing pieces, because those... are truly expensive (exaggerate as well) but worth every dime!
And I dare say, who ever set its prices based on one's income is a freaking foul! it won't last, it will only tire the mass market of those that earn their money!
YvesOdier TTT
Posted by Mark in California
March 30, 2007 - 01:15AM cet
IP : 66.245.46.118
Email : markjakey@yahoo.com
Those Giffens are ....GGGGOOOODDD...pure magic when it happens
Cheers
Mark in California
Posted by Mark in California
March 30, 2007 - 01:23AM cet
IP : 66.245.46.118
Email : markjakey@yahoo.com
Posted by Polleke
March 28, 2007 - 07:06PM cet
IP : 81.243.101.42
Email : Paul.dejongh@skynet.be
You order a watch let's say Pam 249 at 5800$ you give an accound of 1000$
One year later you still dont have the watch but if it comes you have to pay 700$ more
I do not find that logique for me it's up to the brand to honnor the order in a reasonable time limit
I think that 10- 12 % price incrase is to mutch
Greetings
Polleke
Posted by amanico
March 28, 2007 - 09:33PM cet
IP : 81.57.232.190
Email : amarillifondaneche@yahoo.fr
Posted by Asi
March 29, 2007 - 07:30AM cet
IP : 88.155.107.79
Email : asimut@gmail.com
Cheers,
~Asi~
Posted by YvesOdier
March 29, 2007 - 11:21AM cet
IP : 86.203.88.229
Email : yves.odier@wanadoo.fr
But, many have this nasty practice to take the order and not protect the customer's rights! That to me is not acceptable.
I have a friend who ordered 2 Ferrari cars, that was last June 2006 both cars were priced and will be delivered as priced. With Rolex Agents if you make a fix order for any of their watches, the order watch will be delivered as priced! I think others need to take the good examples that are out there.
I agree with Asi, if you have to pay top prices be served were you have more chances to see your purchases rewarded and appreciated!
Posted by amanico
March 29, 2007 - 02:42PM cet
IP : 81.57.232.190
Email : amarillifondaneche@yahoo.fr
When you order a watch that will be delivered in 6 or 12 or 24 months, you are making an agreement on the price and on the thing you buy...
So, in France, the contract is perfect since the order.
I can't legally admit that such professionals ask you further a bigger price for the thing you ordered ....
BTW, perhaps it's more secure to specify, as when you buy a car, the price of the watch you ordered...
Posted by panben55
March 29, 2007 - 06:32PM cet
IP : 12.33.122.130
Email : benchouchane@yahoo.com
100% agreed. I just think that watch retailers and brands should work the same way as it goes in the diamond industry, on the capital markets etc... When price is locked, you gotta stick to it. Period. We're talking about a lot of money here, so it has to be fair to the buyer.
Just my 2 cents (I am paid in $ but I prefer Euros for now :) ) .
Best,
Ben