Pricing rumour

[bombardior]

ahh, thanks for that information! I guess 14% increase in Europe alone would probably have been pretty catastrophic especially if the euro eventually bounces back. guess we'll wait and see.
certainly not treating watches as an investment but still hurts to think something i bought lost a few thousand in value overnight lol! but life goes on

Originally Posted by HL65

There was zero change to dealer margins fyi and T. Stern in his letter stated he wanted to maintain dealer margins. Also he said it was either do this or only increase prices by 14% in Europe which he felt would kill sales there. His main goal was to equalize pricing more and control grey market. I have read the 3 page letter and his rationale all in there. Short term will be much hype and noise but my guess is over time it will die down and quickly at that. Best advice is as always buy the right watches and at right prices. There are a lot of dogs out there that fare poorly with collectors like it or not. Clearly new watches that have replaced certain old watches have not been a success and they have been going out back door to grey dealers for close if not at AD cost. This has killed secondary market for those references i.e. 5270 and 5170. So be smart about what you buy and what you pay. In the end life goes on and these are watches and meant to enjoy and wear not replace your investments.

[bh_horology]

Originally Posted by HL65

There was zero change to dealer margins fyi and T. Stern in his letter stated he wanted to maintain dealer margins.

Ken - so did the dealer invoice go down by 7% as well?

[Daytonaman799]

I am stunned....

That's got to hurt those who just bought if they paid MSRP a. The flip side is pricing has gotten crazy the last few years. I know how volatile the FX mkts have been but I wonder if this speaks to demand in certain parts of the line. The have been a lot of sales 'misses' at the high end luxury segment of the market lately.

[HL65]

Originally Posted by ashkapur

Ken - so did the dealer invoice go down by 7% as well?

Yes for new watches but many have large inventories and those went down by 7% in value for them as they are paid for.

[ansharma]

As a few have said, UK prices to remain static with further review in June 2015 - confirmed by a UK AD.

[benlee]

Those who have just bought their PP watches before the reduction are not going to be happy and understandably so. Even more so are those that are buying into the brand because of their perceived "value holding" advantage. But then, PP never guarantees to us collectors that they won't ever reduce prices, just that they have rarely or never done it before. In the end, PP does what it feels is best for them. They are a business after all.

[HL65]

Originally Posted by benlee

Those who have just bought their PP watches before the reduction are not going to be happy and understandably so. Even more so are those that are buying into the brand because of their perceived "value holding" advantage. But then, PP never guarantees to us collectors that they won't ever reduce prices, just that they have rarely or never done it before. In the end, PP does what it feels is best for them. They are a business after all.

Even after 7% drop we pay 10% more here in U.S. than many including Switzerland and HK. AP dropped prices few years back by 17% on gold pieces and market settled down quickly. I think right now it is more hype and will settle down and go away soon. For many who want to buy great news you get lower entry point. I have always been bothered that we pay more here than most! Will I stop enjoying Patek now that I can get for less money? No! I look forward to what Basel has to bring and now keep fingers crossed for 5131R and for 7% less! Just my take so to all....Stay calm and stay tuned.

[Makau]

Top notch advice Ken. Keep everyone calm and focused on enjoying your watches. Don't sweat the things you can't control.

I had a 5711 delivered today and I guess I could have saved a thousand or so if I had known and waited. But, I made that thousand back in my First Solar stock today so all is right with the world. 😆


Sent from my iPhone using Tapatalk

[benlee]

Originally Posted by HL65

Even after 7% drop we pay 10% more here in U.S. than many including Switzerland and HK. AP dropped prices few years back by 17% on gold pieces and market settled down quickly. I think right now it is more hype and will settle down and go away soon. For many who want to buy great news you get lower entry point. I have always been bothered that we pay more here than most! Will I stop enjoying Patek now that I can get for less money? No! I look forward to what Basel has to bring and now keep fingers crossed for 5131R and for 7% less! Just my take so to all....Stay calm and stay tuned.

Well said Ken! Watches should be for personal enjoyment, not like watching stock prices. I am planning to add a Nautilus now and it's good news for me. Buy at the right price and buy what one can afford

[harrisons.brilliance]

According to HighGlow Jewellers in California it is correct.

[exxondus]

I hve a feeling that they are trying to capture the chinese mkt during the chinese new year period. Traditionally, this is when they buy the most watches. Rolexes have been flying off the shelf recently in singapore.

Quite a low move if this is the case to move sales. I dun see hw reducing prices is gg to kerb the grey mkt. once thisr existing in entry moves, they can make use of the differences and get a fresh batch again. So if that is the reason, meaning there wil b another price reduction in jun? Oh well, guess its all speculation.

[lipjin]

I'm going to take a look at 5164s and 5167R at lunch later - could be an impulse purchase :)

Will comment on availability of blue 5711 as well given it is day one of price cuts!

[HL65]

Originally Posted by lipjin

I'm going to take a look at 5164s and 5167R at lunch later - could be an impulse purchase :)

Will comment on availability of blue 5711 as well given it is day one of price cuts!

Good luck finding 5711 blue they reduced prices they didn't increase production just saying my friend.

[Vipes]

Wow. Big news. I was very close to pulling the trigger on a 5205r yesterday but decided to hold off. May have to consider the 5980r now.

[ELITEVIDEOGAMES]

Never thought I would see it happen, o well I still love my watch and that's all that matters no me. I'm sure in the future they will go back up again.

[Kittayos]

Guess a 10% discount previously in all HK Patek ADs is gone. Anyone knows whether discount is still provided? I went there last December and saw a couple 5980/1a black dial but prices were just too high even after a discount. Could be all vanished this week.

Europe is still a safe heaven to buy Patek imo with a tax refund. You basically can't get any cheaper Patek elsewhere in the world.

Don't know the rest of the world but in comparison to my local currency, HK dollar is upped over 5% since 2013 and the grey market in HK has always been the 1st spot when one is planning to obtain a Patek watch. Local buyers ask from grey dealers first and to many, they don't even bother going to the ADs knowing that the quoted price would be 100% more premium. This price reduction will reduce some discrepancies and fulfill the wide gap between the 2 markets there.

[autohorology]

While I agree on buying watches for enjoyment, it's not a collector's fault for buying into some of the mantra that a Patek maintains its value. Part of that mantra was lost today.

7% does absolutely nothing to the Patek demographic, in your local market. The same guy who can afford 7% less can afford 7% more with this brand. I understand why they did it to equalize the global grey market with regard to currencies. Perhaps no one will care six months from now and the diminished global grey market inventory will boost the brand. They must have some grander vision than any of us can contemplate, I hope...

I still think the underlying reason is a realization that the brand is too overpriced to begin with, but then again, is it really? Every other brand has skyrocketed prices as well. So ask yourself, do you still want that Hublot Big Bang at MSRP, or would you rather have the Patek at MSRP? Still an easy choice regardless of the reduction..and certainly forces the other brands to question their own value. Regulating one's self is sometimes necessary.

[Kobayashi]

Originally Posted by autohorology

7% does absolutely nothing to the Patek demographic, in your local market. The same guy who can afford 7% less can afford 7% more with this brand.

Agreed.

Still out of my price range for a 5167R. I'll just continue to live vicariously through Ken's pictures :).

[autohorology]

The price of the 5167R has never made sense. Near double a 5167a just because it's got a couple grand of gold in it, and only 11.5k under a 5205r annual calendar with a moonphase?

They're valuing metal more than they're valuing complication, and in my view that's a mistake. However, there were some pretty deep discounts on 5167R's on the grey market, at least before this price change.

Originally Posted by Kobayashi

Agreed.

Still out of my price range for a 5167R. I'll just continue to live vicariously through Ken's pictures :).

[lipjin]

Originally Posted by autohorology

The price of the 5167R has never made sense. Near double a 5167a just because it's got a couple grand of gold in it, and only 11.5k under a 5205r annual calendar with a moonphase?



They're valuing metal more than they're valuing complication, and in my view that's a mistake. However, there were some pretty deep discounts on 5167R's on the grey market, at least before this price change.

That I agree. 5167R didn't make sense and the 5164 priced closely with added complication was a close comp

That said, the 5960A repriced market expectations of what a AC chrono should cost

[martinr]

Originally Posted by Vipes

Wow. Big news. I was very close to pulling the trigger on a 5205r yesterday but decided to hold off. May have to consider the 5980r now.

After the 7% decrease and with a discount from an AD if you can get one you're close to 50K which is a great deal considering it's a rose gold chrono from PP. I'm tempted to sell my 59801A and find one.

[Vipes]

Originally Posted by martinr

After the 7% decrease and with a discount from an AD if you can get one you're close to 50K which is a great deal considering it's a rose gold chrono from PP. I'm tempted to sell my 59801A and find one.

Yup, close to 50k would be a real good deal.

[Duey]

I used Brian's numbers and came up with a little fun here PP 2008 to present and Rolex 2008 to present or 2012:
.................................................. ..7% Drop
..............2008............2014..............20 15..........Increase
5167.....$15,200.....$20,300.00....$18,879.00..... 19.48%
5711.....$19,900.....$26,700.00....$24,831.00..... 19.85%
5712r.....$29,900.....$46,700.00....$43,431.00.... .31.15%


................2008...............2012........... increase
116718 ...$22,750.......$33,250.00......31.58%
116520....$7,900.........$12,000.00......34.16%
218238....$27,650.......$34,850.00......20.66%
218239.....$30,200.......$37,550.00.....19.57%
116710 ......$5,950........$8,450.00......29.58%
116610LV....$7,725........$9,050.00......14.64%
114200........$3,800........$5,050.00......24.75%

I know they're not the same but I thought the numbers were the interesting thing

[exxondus]

Theres a whooping 15% drop here in singapore.

[redsubby]

Originally Posted by exxondus

Theres a whooping 15% drop here in singapore.

What is the new price for 5711 and 5167/1a there? Any tax refunds?

[mikeceee]

hindsight is 20/20. Anyone upset they just bought a watch it's the same as someone who held off on buying a watch only to go through a price increase. It's just the roles previously experienced are reversed. So be happy for those who held off on a watch or take advantage and buy a watch you've been wanting. And for the watches you already own does this news make you enjoy them any less? You can't win them all... Patek price increases and decreases are a great problem to have in the scheme of things.

[exxondus]

Originally Posted by redsubby

What is the new price for 5711 and 5167/1a there? Any tax refunds?

5711 shld be in the 31-32k sgd range. 5176 is 24-24.5k sgd range after the drop

Theres 7% gst here. Guess shp was way way overpriced to begin with. Makes me wonder how come pp is not aware of this and obly now decided to step in.

Fortunatelyi dint get fr sgp else i will b feeling super sad lol.

[lipjin]

ImageUploadedByTapatalk1423629249.347753.jpg

Just headed to my AD. Still 10% discount off list for long time customers and I'm staring at my first impulse purchase for the year. He thinks all the watches will fly off the shelves next week due to the influx of tourists. A very successful sales pitch to me I must say

[redsubby]

Originally Posted by exxondus

5711 shld be in the 31-32k sgd range. 5176 is 24-24.5k sgd range after the drop

Theres 7% gst here. Guess shp was way way overpriced to begin with. Makes me wonder how come pp is not aware of this and obly now decided to step in.

Fortunatelyi dint get fr sgp else i will b feeling super sad lol.

Damn...24.5k for 5167? is this the bracelet version? because it's like US 18000 before tax refund. That's way cheap.

[GB-man]

Originally Posted by mikeceee

hindsight is 20/20. Anyone upset they just bought a watch it's the same as someone who held off on buying a watch only to go through a price increase. It's just the roles previously experienced are reversed. So be happy for those who held off on a watch or take advantage and buy a watch you've been wanting. And for the watches you already own does this news make you enjoy them any less? You can't win them all... Patek price increases and decreases are a great problem to have in the scheme of things.

Understood but they are rewarding those who held off on buying, punishing those who did and damaging thier golden reputation for value retention all on one move.

Not the clients fault they backhanded the U.S. market alongside others for years.

Just my thoughts and I haven't bought a new pp recently. Also of course it won't make me enjoy my PP less...but I will hesitate to buy the one I had next on my list.

That small move has made me question a brand that I previously didn't. That alone makes me wonder if it was a smart move.

Last thought, if a car company does the same...I'd be elated. Maybe the real answer is...stop pretending watches are immune to unexpected depreciation! As for the argument to buy the right pieces...seems all the right pieces are out of production