Will the U.S. receive a price raise?

[andreturning]

I am seeing all this talk about prices in the u.k. going up.I am new to the Rolex scene so I guess that means a U.S. increase is on the horizon?

[SemperFi]

There have been price rise rumors for years. Eventually the rumors will become fact. When it happens is anyone's guess.

[japenney]

Only rolex knows. We can only guess. Even ADs may only know a couple of days beforehand. There is no other answer.

[Muzz]

I wouldn't call the recent U.K. Increase anything more than a currency correction. So that would be a negative in my opinion in the US as the USD has gotten substantially stronger.

[77T]

You can't go wrong with "yes" - it's the timeframe that's the tough part.
Never say "no" since Rolex will continue to price to the market demand.

[kilyung]

You can be sure of two things related to Rolex: 1) prices WILL increase some day but only on Rolex's indecipherable schedule. 2) There will regularly be a price increase thread on TRF.

[GradyPhilpott]

There have been a few currency corrections since the last US price increase.

The recent UK increase appears to be a correction also, given the Brexit thing.

Of course, like the rest of the world, I have no idea what Rolex has planned.

[cpark]

I highly doubt it since the slowing of sales throughout the watch industry. Not to mention the strength of the dollar is getting stronger. Since it's getting stronger that means more revenue for foreign companies, which Rolex is one. I would expect one just because of "Luxury inflation within 2-3 years" but not now IMHO.


Sent from my iPhone using Tapatalk Pro

[henry333]

I would bet ...it will not. The US currency is strong . As for UK is weak , it need to balance out. I don't see a price rise for a while.
But if you ask a AD it will very soon , maybe tomorrow lol

[padi56]

Originally Posted by Muzz

I wouldn't call the recent U.K. Increase anything more than a currency correction. So that would be a negative in my opinion in the US as the USD has gotten substantially stronger.

Thats 100% correct nothing more.

[padi56]

Originally Posted by GradyPhilpott

There have been a few currency corrections since the last US price increase.

The recent UK increase appears to be a correction also, given the Brexit thing.

Of course, like the rest of the world, I have no idea what Rolex has planned.

Well Grady in the UK now they blame everything on Brexit even the bloody weather.

[MonBK]

Originally Posted by padi56

Well Grady in the UK now they blame everything on Brexit even the bloody weather.

What do you blame it on?

[Jetkopite]

Guys is it certain of a 10% correction next week or just the normal rumours ???

[GardenState]

Rolex seeks (as most international retailers) something called purchasing price parody as well as progressive global inflation for the brand. What this means for non economists is that the pain felt by the consumer to by a Rolex relative to their local needs is the same wherever globally the purchase is made.

As the world has gotten smaller however this becomes more challenging as exchange rates move. For instance at this time last year an American had to pay $1.58 for a British pound, today post Brexit that British pound costs $1.22. So in Rolex terms last year a £10,000 Rolex would have cost an American $15,800 and today would cost $12,200.

This depreciation defeats both of the stated goals described. For an American suddenly the Rolex looks relatively cheap in the UK vs the US and globally the brand gets devalued as the "lower cost" UK Rolexes get quickly absorbed by value buyers.

The Rolex response, don't give UK dealers inventory until prices are raised in the local currency (pounds). Long answer but yes prices globally will go up but the current UK move is a targeted one off in my opinion.

[AK797]

Originally Posted by GardenState

Rolex seeks (as most international retailers) something called purchasing price parody as well as progressive global inflation for the brand. What this means for non economists is that the pain felt by the consumer to by a Rolex relative to their local needs is the same wherever globally the purchase is made.

As the world has gotten smaller however this becomes more challenging as exchange rates move. For instance at this time last year an American had to pay $1.58 for a British pound, today post Brexit that British pound costs $1.22. So in Rolex terms last year a £10,000 Rolex would have cost an American $15,800 and today would cost $12,200.

This depreciation defeats both of the stated goals described. For an American suddenly the Rolex looks relatively cheap in the UK vs the US and globally the brand gets devalued as the "lower cost" UK Rolexes get quickly absorbed by value buyers.

The Rolex response, don't give UK dealers inventory until prices are raised in the local currency (pounds). Long answer but yes prices globally will go up but the current UK move is a targeted one off in my opinion.

Yes the only strange thing has been how slow Rolex have been to correct this disparity, many other brands raised prices in Aug. If the pound keeps falling towards 1.10 then we will have an another adjustment in the new year. I don't think anyone predicted the pound would plummet quite so much, I thought it would stabilise around 1.30, but pressure seems more downward than upwards, outlook more bearish as we are facing a hard Brexit from EU hardliners who will not concede much.

[GardenState]

I think the delay was trying to find stability so that multiple corrections wouldn't have to be made. In particular I am sure they wanted to avoid having to face a choice of having UK watches priced high or having to lower prices if the pound had bounced off of the recent levels.

[Gaijin]

Yes. There will be a price increase.












Someday.

[efredly]

Originally Posted by GardenState

I think the delay was trying to find stability so that multiple corrections wouldn't have to be made. In particular I am sure they wanted to avoid having to face a choice of having UK watches priced high or having to lower prices if the pound had bounced off of the recent levels.

Yep. F/X rates can be volatile and global brands aren't well served by revising prices constantly. Cartier for instance revisits local currency prices (against the euro I believe) one to two times a year.

A rapid move in F/X usually means arbitrage opportunities for travellers!