Mark in Paris[Purist]
10488
Well, yes, they've been growing very quickly since the last 15 years or so
Sep 12, 2017,10:32 AM
I think that this figure has to be also taken in the perspective of the growth in demand, considering they are known more and more.
When I bought my RM035 in 2012, it was much less so and such brand becoming more and more famous leads to a demand that allows imho a growth in production.
However, you're right, this is a true issue for brands in general. Increasing prices when the demand is there, increasing volumes when you can sold them, at the risk of course of going a little too far when the market reverses, is something tough to manage for a brand, not only for RM.
I remember when people said in around 2010-2012 that prices were much too high. However, they grew afterwards and they sold a lot of watches.
So, what conclusion do I make? Well, if they had said in 2010 "let's stop price rises", they would have lost a very significant amount of revenue.
When you manage a company (whatever it is) a management also has to take into account the fact that things can go less well in the future. Then, it is safer for a company to make reserves when times are good.
I would say they were right not to stop in 2010. This strengthens their financial base to face the future or to develop new products.
Of course, when the decrease comes, the price remain very high and they have to deal with the situation.
I think you're right to mention they have to be careful and I hope that's what they do
Best, Mark