Why the price increases?
Discussion
Now I know these are luxury watches and consequently they have the associated cost to go with this.
However I don't understand why some manufacturers see fit to rise prices twice in one year and by quite considerable margins. I could understand rolex for example increasing the daytona by some margin as there was the demand for it (I use the tense "was" deliberately) and people were willing to pay over list to get their hands on the piece.
My gripe is that I think few manufacturers especially in this particular moment in time can claim to have massive demand for their products and so I just dont understand why the relentless price increases continue to forge forward. Could anyone shed some light on the situation. I mean breitlings which were nearer 3K only a few years back are now getting nearer to 4K!!
Do these price increases negatively affect secondhand values? There must surely be a limit to how far people are willing to go. Or is this all a complex marketing machine at work? I mean I'm sure these seasonal increases must make a late seasonal flurry of activity at the dealers which helps to clear "old" stock?
Lastly before some clever Billy pops along I'm not detered about getting a luxury watch due to these increases, quite the opposite in fact. I just wanted a little understanding of the situation.
However I don't understand why some manufacturers see fit to rise prices twice in one year and by quite considerable margins. I could understand rolex for example increasing the daytona by some margin as there was the demand for it (I use the tense "was" deliberately) and people were willing to pay over list to get their hands on the piece.
My gripe is that I think few manufacturers especially in this particular moment in time can claim to have massive demand for their products and so I just dont understand why the relentless price increases continue to forge forward. Could anyone shed some light on the situation. I mean breitlings which were nearer 3K only a few years back are now getting nearer to 4K!!
Do these price increases negatively affect secondhand values? There must surely be a limit to how far people are willing to go. Or is this all a complex marketing machine at work? I mean I'm sure these seasonal increases must make a late seasonal flurry of activity at the dealers which helps to clear "old" stock?
Lastly before some clever Billy pops along I'm not detered about getting a luxury watch due to these increases, quite the opposite in fact. I just wanted a little understanding of the situation.
Edited by Driver Rider on Wednesday 20th May 11:18
I suppose it will also be the supply/demand effect. Less people are buying, so they make less watches. This means that they have lower utilisation of the equipment they have already bought, and the fixed costs will remain the same, resulting in higher cost per unit. I'm unsure on swiss redundancy laws/payments, but they will also have an effect.
I think there must be a variety of factors;
Placing your product in the correct segment and keeping it there - either by price or availability, bolstered by marketing.
Currency fluctuations. Euro vs £ isn't too good at the moment nor for the last 6 months especially - all EU products have seen price pressure.
Plus it's a self fulfilling prophecy in some respects - if your product is similar in quality, design and perception to another and the competition raises its prices then you could also raise yours; being the cheaper premium brand isn't what they are aiming for!
Placing your product in the correct segment and keeping it there - either by price or availability, bolstered by marketing.
Currency fluctuations. Euro vs £ isn't too good at the moment nor for the last 6 months especially - all EU products have seen price pressure.
Plus it's a self fulfilling prophecy in some respects - if your product is similar in quality, design and perception to another and the competition raises its prices then you could also raise yours; being the cheaper premium brand isn't what they are aiming for!
It is mainly to do with exchange rate, we have had it pretty good here for a few years, now the pound has dived we get the pain. As an example just before Christmas I was about to buy a chopard GT, a black edition, and got the price to £3900.00 which was OK but I decided to hold off. Went to go and try and get it this week... Cheapest price was £5040.00! Ouch! Chopard have just had a 12% rise.
In the end the market will support what it supports, if they can sell at that price then they will! If they can't then the prices will come down, but don't hold your breath!
In the end the market will support what it supports, if they can sell at that price then they will! If they can't then the prices will come down, but don't hold your breath!
The exchange rate would explain a lot about the price increases. Also I guess the marketing dept has a part to play with the pricing as well. The last poster mentioned people investing in watches I think this would happen only with high end and rare vintage watches. Might be wrong though!
Of course, since sterling has regained 13% of its losses aginst the euro over the last two months Rolex and the rest will of course take that into account and reduce prices accordingly, if only for the stainless steel models? And as sterling continues to climb, I am sure they will be responsible vendors and continue to reduce prices in the UK.
I raised the same question on another forum a couple of weeks ago. In the last 18 month since I bought my GP the list price has gone up from £5700 - £8600 and now £10,100. 
that is truly rediculous!!!!!
I haven't looked at second hand values to see if these have followed a little bit to see if these has been a knock on benefit.
It helps with the bar room willy waving
that is truly rediculous!!!!!
I haven't looked at second hand values to see if these have followed a little bit to see if these has been a knock on benefit.
It helps with the bar room willy waving
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