Patek Philippe

Patek prices are up by 10 percent in the UK from 1st September.

Best,

K

there will be another 10 percent increase in the next few months.

Best,

K

Strong Franc and soaring gold price, you do the math..

With all due respect, PP watches in the UK have always been very expensive [you get what you pay for]. However one of my favourites, the 5712/1A has gone up approx 66% in 4 years and it's in steel. Don't get me wrong, I still love PP, but the price increase in the UK.....!!!!! 4 years ago when I purchased an IWC Top Gun ceramic split chronograph it was £6,350.00, the 5712/1A was approx £12,850.00. My Top Gun is now £8,500.00 and the 5712/1A is I think £21,350.00. That's a 33.85% increase Vs 66.14%, that's double IWC's increase. If the reason for the increase was as has been stated in this and various forums, then one would expect to see similar increases across the brands???

As a side issue, my salary has only grown 1% in 4 years!!!!

Saying all that, I'm saving hard for a 5235, just hope it dosen't grow faster than I can save!!!!

 

Dave

the gold price is set in US dollar, so if the price of gold rises in USD and at the same time the USD weakens versus the CHF then you can't increase prices for both gold increase and CHF increase.... I am not saying that it is a perfect correlation (ie that the increase of the CHF mitigates the price rise of gold), but you get the point.

But more worrying is the fact that this is all based on an extremely short term view. The Swiss central bank has already said that the CHF is very much overvalued, so if they are going to increase the prices for every tick up inthe CHF then when fx rates normalize again, the euro and usd prices for their watches will have been pushed to structurally higher levels, but perhaps that is what they aim to achieve.

For me, Patek prices at the moment are completely out of line and for the watches I had on order: I had already said that I wouldnt accept the previous price increase and I for sure won't allow them to charge me this one.....

Look at the current stock at dealers, many many watches available that weren't readily available say a year ago. Even though manufactured when gold and CHF were weaker they will charge new retail price I assume, as if they were selling like hot cakes at the old price already.....

i recently visited 2 PP AD in switzerland: both reassured me there WON'T be any increases this year (the last one occurred in february). whenever the topic of "increase" occurs on this forum, one should perhaps first specify country or region. i myself was confused reading posts on this forum and thought that PP increased its prices 3 times this year, while in fact it happened "only" once in switzerland.
as a rule of thumb, PP and other brands do increase their prices once a year.... sad but "inevitable"(?)

supply and demand! fortunately (or unfortunately), demand has been high in certain parts of the world, and despite repeated price increases, the watches are still selling, therefore the manufacturer can still get away with it.  At some point, it will hit a sweet spot in price where it won't sell, and that's when trouble will arise in this market.  Where this sweet spot is, I'm still waiting to see.  On a personal note, it has already hit my sweet spot, since I can't just buy a PP on a whim, due to the price.

Patek found a cure for my "watchnut-ism" condition.

No message body

of course the prices will not rise so easily in the country of origin, it's the rest of the world that sees the prices going out of the roof, I was in Switzerland a few weeks ago (on holiday) and the only thing i could conclude is that the Swiss can buy their own product around 15% cheaper in any country that has the Euro for currency .... good for you of course

I remember long before the economy took a dive... multiple price-hikes per year sometimes from Patek. Why is there surprise at this? Why is it referrred to as news? Bad or otherwise? Patek raises prices all the time, and as often as they can get away with. It really seems to be a pillar of the company, and I mean that.

No message body

I think price increases are the norm. Rolex,JLC,ALS,AP,Seiko & others have raised there prices recently and some will do so again as early as next month.

It would be interesting to note which brand(s) HAVE NOT put up their prices to reflect or to take advantage of the higher gold or CHF rate.

As long as the US continues to print money and keep interest rates low, those economies that are linked to the dollar will continue on its inflationary ways.

A business will always want to maximise its profits. Ultimately, it's the consumer who decides when enough is enough.

F

isn't it? And shockingly so, frequently (and without cause, often.)

IMHO, the cause is the buyer - yes, us!   Collectors or purchasers or whatever you call it, still pay the price no matter what.  If they/you/we stop buying and start selling altogether, the price increase might stop.   But it is not likely, fortunately or unfortunately.  That may be one of the reasons why people are attracted to PP.  Again, IMVHO

1 Or 2 times per year all brands go up. Somthimes not that much, only a few percent to cover inflation. Somethimes a lot more.

But the average over the last 10 - 20 - 30 years is the same

Just look ate the first Patek Nautilus which was made in 1976 (or 35 years ago) the was the steel Nautilus , the ancestor of the 5711 we know today. That watch was at that time the most expensice stainless steel sportswatch. Only because expensive watches were made out of gold 30 years ago. Anyway, making expensive watches started with the AP RO and nautilus.

But the point is that 35 years ago a Steel Nautilus had exactly the same pricetag as a VW Beetle. Today it still costs the same as the cheapest Beetle without any options. So is did not become more expensive than it used to be.

  

Well i did say in the UK.

Anyway, its good news for collectors who have a Patek Collection. Its bad news for people aspiring to start a Patek Collection or collectors whio have watches on order. Its bad news for UK retailers as there costs have gone up by 20 percent.

Ofcourse there are Patek Collectors with deep pockets, so its neither bad nor good news for them.

Best,

K

Ask yourself: How are you basing a 'price' increase?

In other words, what item(s) are you using to base that it takes more of 'XYZ' to procure ownership of 'ABC'?

Yes, i realize on the face of it that it may seem like a 'stupid' question to some, yet might provide a deeper thinking for others. According to my calculations, the price or Patek/Rolex and other items has remained within a certain range for decades. It really is simple math, yet the trick is what you use as constants and variables.

german watches price-lists IF Germany had not joined the eurozone and kept  DM . LOL

Thank you for the input, news!

But as some have said already: good point is that it stops us from overspending.


Regards

Moritz

Patek Philippe contact some of my colleagues to talk about how hedging could help them.

Though another factor may be the high inflation and pay raises necessary to keep highly talented craftspeople. You have to figure at least 5% pay raise in 2011 just to keep at the same pay level. If Patek were based in the USA, that would be at least 8% pay raise needed just to stay even. www.shadowstats.com .

Then there is costs of machinery needed ever-more precision and upkeep. other costs include, but not limited to:

1. Develop new technologies and implementing them.

2. The cost of the actual metals/leather/etc to produce the items.

3. Cost to ship items.

4. Cost to advertise products in print and Internet media.

5. Costs to produce/ship literature, magazines, etc.

The list goes on and on. Though please, deflation in housing/commercial RE is true yet is not a factor for producers of items. Am sure many here may run a business that produces items and understands the costs of manufacturing very high quality items (read: not Nike shoes made in Vietnam or junkware made by lesser-skilled workforce using low-end materials/fabrication. 

 

Hi,

What's the point here?

That's their positioning on the market. You buy it or not.

Customers don't make the price, they buy or not buy (and in time the price is adapted)!

And be worried for the day they'll begin paying me. Increase will be much more than that!

Cheers

Dje 

ps: Haven't we had enough of these totally empty and boring discussions about why we are not efficient enough and don't make enough money ourselves to assume our own positioning in the competing world we live in?  Really? 
This message has been edited by Dje on 2011-08-21 11:13:03

ALL ABOUT THE MONEY

This message has been edited by Arnoni on 2011-08-21 16:45:19

Aussie, Patek is a BUSINESS!  It is NOT a charity.  Why the disdain for the free market?  If people don't buy the watches at these prices, then they'll be lowered.  If people continue to buy watches, then look for more increases until economic equilibrium is reached.  That's freedom at work.  You should be thankful for freedom.

No message body

Patek prices are all about supply and demand.  Nothing to do with value of the Swiss Franc, or the cost of gold.

Does anyone think Patek prices will go down if the Swiss Franc and/or gold falls from their lofty perches?

I don't think so..............Patek will push the prices until there aren't enough buyers.   And if Patek is raising prices, they must have more than enough buyers at current prices.

nt