whit
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I think there is another factor which hasn't been considered.
Demand has played a very important part in some of the recent increases, particularly the increase experienced here in the US in April '08. I have been reading a book about luxury goods and it appears that brands do want their products to be exclusive (hard to get) and expensive, regardless of the economy. Reading this certainly lead me to see a similar pattern as it relates to Patek. In fact, I had a conversation with someone who said the same thing.... when there is great demand for the product, what happens to pricing? It goes up.
When only 10-15 pieces of a reference available per year and there are 300 very well qualified folks who want it, you can clearly see the direction this is heading.
So, while there are certainly factors such as exchange rates and gold increases which contribute to these increases, the insatiable demand for the product may have an equal or greater impact in pricing within the luxury watch industry.
While it is uncomfortable and makes future acquisitions (for some) more difficult, it is the way it is and we are all going to have to get used to it.
Another price Increase......
Patek prices are up by 10 percent in the UK from 1st September. Best, K
and more bad news......
there will be another 10 percent increase in the next few months. Best, K
I don't agree..............
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 increa...
That doesn't make sense right, as...
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 th...
misleading news?
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 wa...
It's purely economics
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...
This is actually very wonderful news.....
Patek found a cure for my "watchnut-ism" condition.
A Swiss franc stays in value the same in your country
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 t...
This has been going on for years, hasn't it?
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...
Not just Patek....
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 adv...
But it IS fair to say that Patek does more than others
isn't it? And shockingly so, frequently (and without cause, often.)
Cause - because many would still love to pay the price. Simple.
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 unfo...
Not more expensive than it uses to be
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 3...
I think there is another factor which hasn't been considered.
Demand has played a very important part in some of the recent increases, particularly the increase experienced here in the US in April '08. I have been reading a book about luxury goods and it appears that brands do want their products to be exclusive (ha...
Bad News and Good News??
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...
Price Increased As Based On...
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 migh...
Try to imagine
german watches price-lists IF Germany had not joined the eurozone and kept DM . LOL
+ 66% ? That is more shocking news from the UK than the recent riots in London!
Thank you for the input, news! But as some have said already: good point is that it stops us from overspending. Regards Moritz
...I might suggest that
Patek Philippe contact some of my colleagues to talk about how hedging could help them. But let's not pretend this is all about the strength of the Swiss Franc. Seems to me that Patek are deliberately pricing themselves out of the US and Europe. I love th...
Agree...
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% p...
Yes perhaps, so what? The market law, offer and demand....
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 th...
Could it be, just maybe is it, well it must be......
ALL ABOUT THE MONEY This message has been edited by Arnoni on 2011-08-21 16:45:19...
Freedom
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 ...
Supply/Demand
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 ...
Business does not equal passion
Patek--in an ideal world--would be viewed as a passionate watchmaking company whose prices reflect the unequaled quality/ passion within their watches... But this ideal is no longer the way many collectors view Patek... It can be argued that there was tim...
...you're assuming a perfect market..
and the luxury watch market is anything but perfectly efficient. My concern is not for the prices per se but more the viability of Patek. To me it looks like they're pursuing a very high risk strategy which risks alienating all their established markets. ...
Patek is in a tough spot here
I see this quite differently. I think Patek's hands are essentially tied here. If they don't update local prices to reflect current exchange rates then they will have a big arbitrage problem. That is, the grey market would run wild. Where the prices are e...
Excellent point and...
Louis Vuitton does the same time of price equalization between markers that use different currencies. Back in the day, when Patek timepieces were about 12% less when priced in the German Mark, if you get a discount in Germany the overall price was very at...