Bill
32123
Euro / Dollar and watch price pressure.
The Euro/Dollar pressure is really what is driving a lot of the 10/20% price increase we have seen and will be seeing. When you
hold back prices for a few years and the the exchange rates are not
favorable you need to protect your margins and obviously cost cutting is no where in sight so a price increase is the only option.
| American Dollars to 1 EUR (invert,data) | ||||||
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Just looking at this chart over the last 120 days we are looking at a 10% swing. If we go back to 2005/06 we were at about $1.10 - $1.20 so you can easily see the justification. Most of the parts and costs are Euro based and the Overseas markets are important but not at the cost of not making money. No profits means no new developments and innovations.
What are the thoughts here on the subject.
Bill
Euro / Dollar and watch price pressure.
The Euro/Dollar pressure is really what is driving a lot of the 10/20% price increase we have seen and will be seeing. When you hold back prices for a few years and the the exchange rates are not favorable you need to protect your margins and obviously co...
Couple of comments...
Hi Bill, I've been pondering this one for a while, and I guess you need to know the percentage of revenue and profit per currency to understand it. The hard thing for those of us in europe would be to see a local price increase due to a weak dollar - that...
I think it's time . . .
. . . to start producing watches here again ;-) . . . mischievously, Art
I agree!
i was thinking the other day... A US watch company, of very serious quality, would be in a good position right now... to make a name and start a legend.
the weird thing, though ...
... is that the price for crude oil is traded in Dollars, and in spite of the strong Euro, gas becomes more expensive here in Euroland every day ... Unfortunately, also the watches raise their prices over here, which must double the price increase in the ...
Rumour has it that the real reason for price increases is...
the elf unions are getting more militant and they are demanding significantly higher pay for taking an entire year to create a fine wristwatch. The elves that do the painstaking and tedious hand-finishing of individual parts with only a toothbrush and abr...
I agree with that
that there may be some political issues behinds these sky high price increases? They probably need the high wages because of all the taxes that they are giving to the governments in Euroland? Marcus is right in that the demand in emerging markets like Chi...