Price Increase

[rblack77]

I was wondering if anyone has heard anything about an upcoming price increase. Does anyone know how often they increase prices? Any idea when the next might be and how much of an increase we might see?

[BigHat]

Originally Posted by rblack77

I was wondering if anyone has heard anything about an upcoming price increase. Does anyone know how often they increase prices? Any idea when the next might be and how much of an increase we might see?

These are imponderables. No one can answer your questions outside of Rolex HQ and they don't talk. If you want something, buy it now. You never know.

That said, Rolex just had a hefty increase a few months ago. In my OPINION that means probably not another one for awhile.

Is a dealer telling you there will be one soon? Welcome to their number one technique to get you to make an impulse buy.

Welcome and good luck.

[sys12345]

There's a price increase in HK w.e.f. 15 July 2008, approx 3% as i've read from a HK forum. Not sure if this applies to other parts of the world.

[frostie]

I don't think that it applies

Greece didn't have a price increase for nearly 2 years

[pwrslider]

Was just at the AD..asked about US increases..and they said they haven't heard of one as of late!!

[Z-Sub]

May lead Rolex to have price increase earlier than expected. They have been raising prices almost yearly last few years, sometimes even more frequently.
They may raise Sports watches' prices and not others or vice versa.

Get what you want soon and don't make the same mistake I made before...Watching prices go up and up before pulling the trigger!
Word of caution, you will not stop after just one Rolex

[kaiserero]

When I bought a Submariner a few weeks ago in June 2008, the AD told me that Rolex had just raised prices in March. This was at an AD around Chicago.

I've heard that US prices go up every year, and if so, I would not expect another price increase on their current range until 2009.

I am sure, however, that the new models from the Basel 2008 show will have higher prices than the models they replace.

[I_WANT_YOU]

I hope they jack those prices like a 3-run homer. Improves resale value of my M Series Sub and raises the barrier to entry for current non-owners

[eyen]

hk price up 3% today. sub date at $44500hkd 5705 usd.

[daytona_mania]

Originally Posted by eyen

hk price up 3% today. sub date at $44500hkd 5705 usd.

DAMN

[what3ver]

Originally Posted by eyen

hk price up 3% today. sub date at $44500hkd 5705 usd.

Still less than US MSRP.

[f16570]

They should increase the prices more often.
Would perhaps stop these posts.

[NitroRacer]

I think the idea of a price increase, at least in the U.S., is quite absurd. It's economy is in a recession and is headed even further south. Retail price at an AD is completely arbitrary. Once people feel the pinch of a complete downturn in consumer spending, dealers will be significantly lowering "secondary market" prices on NEW Rolexes just to get them out the door. It's simple supply and demand, and Rolex is certainly not immune to it, however haughty they want to act. Wait 12 months and you will likely get one cheaper than it's going now.

What I mean is, even IF Rolex increases prices, say due to inflation, real-income will certainly drop for it's customer base, and as they start to feel pressure on their profits, they'll be soon singing a different tune.

Someone wrote on this forum not too long ago that Rolexes weren't really subject to economic cycles. I found that idea to be staggering.

[rolexrealtor]

I think with the current condition of the US economy our pricing will remain the same for the rest of the year.

Might see another little ~3% bump next year, just my opinion.

[rpryan55]

August - September is the next price increase in the U.S. You heard it here first. We had a thread like this the last time there was a price jump, everybody saying no and me saying yes. But this one will be a doozy, because the dollar is falling like a rock.

[RolexerATL]

Originally Posted by rolexrealtor

I think with the current condition of the US economy our pricing will remain the same for the rest of the year.

Might see another little ~3% bump next year, just my opinion.

I agree with Wes. With the economy in the dumps, it seems unlikely that Rolex would raise prices and deter purchases. Of course this all depends on the strength of the U.S. dollar. If the dollar weakens Rolex will be forced to raise prices in order to sustain existing profit margins. Damn that foreign exchange rate. I miss the old days where I could walk into a currency exchange booth in Paris, hand them a $100 bill, and get $130 Euros.

[NitroRacer]

Originally Posted by RolexerATL

I agree with Wes. With the economy in the dumps, it seems unlikely that Rolex would raise prices and deter purchases. Of course this all depends on the strength of the U.S. dollar. If the dollar weakens Rolex will be forced to raise prices in order to sustain existing profit margins. Damn that foreign exchange rate. I miss the old days where I could walk into a currency exchange booth in Paris, hand them a $100 bill, and get $130 Euros.

Ohhh, if only the Federal Reserve had such flexible options when faced with inflation AND a slowing economy....

[marshallr47]

I haven't heard of a price increase. Probably next year.

[newrolexman]

We have enough problems in the USA without more price increases.

Lets hope they dont increase the price for a long time.

If they had another increase they would be shooting themselves in the foot.

We need to get back to some normalcy here and I doubt Rolex will do anything now.


D

[scottschoe]

Originally Posted by pgeorgan

I think the idea of a price increase, at least in the U.S., is quite absurd. It's economy is in a recession and is headed even further south. Retail price at an AD is completely arbitrary. Once people feel the pinch of a complete downturn in consumer spending, dealers will be significantly lowering "secondary market" prices on NEW Rolexes just to get them out the door. It's simple supply and demand, and Rolex is certainly not immune to it, however haughty they want to act. Wait 12 months and you will likely get one cheaper than it's going now.

What I mean is, even IF Rolex increases prices, say due to inflation, real-income will certainly drop for it's customer base, and as they start to feel pressure on their profits, they'll be soon singing a different tune.

Someone wrote on this forum not too long ago that Rolexes weren't really subject to economic cycles. I found that idea to be staggering.

My guess is they will continue to increase prices to bring prices level with the rest of the world. Whoever can't afford it, can't afford it. The US is not Rolex's main focus anyways.

[BigHat]

Originally Posted by scottschoe

My guess is they will continue to increase prices to bring prices level with the rest of the world. Whoever can't afford it, can't afford it. The US is not Rolex's main focus anyways.

Well, up until this year the US purchased more Swiss watches than any other country. Jan-April of this year Hong Kong edged us out 821.1 million SF to $757.3 million SF. Regarding the Rolex piece of the pie one can only speculate, but judging from the advertising resources devoted, I believe the US market remains a major if not the main focus of Rolex.

Even after a rather unpleasant run in currency exchange rates, is it not true that a given Rolex model sells for less in HK than in the US when measured in US dollars? So why do US prices need to rise when they are higher than the number one Swiss watch market?

[dotcomakazee]

Originally Posted by pgeorgan

I think the idea of a price increase, at least in the U.S., is quite absurd. It's economy is in a recession and is headed even further south. Retail price at an AD is completely arbitrary. Once people feel the pinch of a complete downturn in consumer spending, dealers will be significantly lowering "secondary market" prices on NEW Rolexes just to get them out the door. It's simple supply and demand, and Rolex is certainly not immune to it, however haughty they want to act. Wait 12 months and you will likely get one cheaper than it's going now.

What I mean is, even IF Rolex increases prices, say due to inflation, real-income will certainly drop for it's customer base, and as they start to feel pressure on their profits, they'll be soon singing a different tune.

Someone wrote on this forum not too long ago that Rolexes weren't really subject to economic cycles. I found that idea to be staggering.

Keep in mind that Rolex is mainly a "luxury" item. That being said, a large portion of Rolex's client base are among "the rich" and are therefore unaffected by the recession and therefore unaffected by price increases.

[BigHat]

Originally Posted by dotcomakazee

Keep in mind that Rolex is mainly a "luxury" item. That being said, a large portion of Rolex's client base are among "the rich" and are therefore unaffected by the recession and therefore unaffected by price increases.

Nice theory, but if that's the case they'd be selling for millions. If you don't think they are pricing in order to maximize sales to both the rich and the less than rich (most WIS's?) you're mistaken. You make it sound like Rolex is the only watch in the world (you'll fit in well here). So let's say I'm filthy rich, I have PP, AP, VC, Lange, JLC and many others to choose from. If Rolex prices become uncompetitive to the other brands they WILL lose my business.

[dotcomakazee]

Originally Posted by BigHat

Nice theory, but if that's the case they'd be selling for millions. If you don't think they are pricing in order to maximize sales to both the rich and the less than rich (most WIS's?) you're mistaken. You make it sound like Rolex is the only watch in the world (you'll fit in well here). So let's say I'm filthy rich, I have PP, AP, VC, Lange, JLC and many others to choose from. If Rolex prices become uncompetitive to the other brands they WILL lose my business.

But that is just you. There is a concept known as "prestige pricing" that is the exact opposite of the basic supply and demand curve that everyone learns in economics 101. With prestige pricing, demand actually increases as price increases.

Also, it isn't just Rolex. 2 years ago you could get a basic PAM 24 for $3000. Now they are like $6000.

[BigHat]

Originally Posted by dotcomakazee

But that is just you. There is a concept known as "prestige pricing" that is the exact opposite of the basic supply and demand curve that everyone learns in economics 101. With prestige pricing, demand actually increases as price increases.

Also, it isn't just Rolex. 2 years ago you could get a basic PAM 24 for $3000. Now they are like $6000.

Okay, so why doesn't Rolex charge $12,000 for a SS Sub if the demand for the Sub would increase along with huge profits? You don't think "rich" people weight the inherent value of a Rolex against their peers and make a purchase decision?
There may be some demand inelasticity in some models like the Millie GV, but Rolex is a mass produced watch sold in the near millions per year -- it still lives in the real world.

[NitroRacer]

Originally Posted by dotcomakazee

But that is just you. There is a concept known as "prestige pricing" that is the exact opposite of the basic supply and demand curve that everyone learns in economics 101. With prestige pricing, demand actually increases as price increases.

Also, it isn't just Rolex. 2 years ago you could get a basic PAM 24 for $3000. Now they are like $6000.

I don't believe it is "prestige pricing" that you are looking for. Rather, a VEBLEN good. This is not learned in Econ 101 (was an Econ major, among other things), but that is inconsequential. In fact, even for the super wealthy, price DOES matter. Consider my post a short while ago on an article in the New York Times. I doubt many people read it.


BEGINNING OF OLD POST

Quote:
Originally Posted by subdownunder
Probably not, at the price point of a Rolex serious buyers will still buy the watch increase or not.

Anyway, as far as Rolex is concerned the rise of China and Asia is where its future sales lie as the Rolex brand is so recocognisable in those cuntries...


This isn't entirely true. Even the extremely wealthy are subject to supply and demand. Given recent US economic turmoil, many people are now cutting back, even going so far as to SELL their Rolexes..something that would drive the price back down. There is a recent article on this in the New York Times. See below.

“Even if they’re not in danger of not paying their mortgage, there’s still a psychological change,” said Chris Del Gatto, chief executive of Circa, which has watched its business jump by 50 percent in the last year as wealthy clients sell their spare diamonds and Rolexes. “The economy is an issue even for people who don’t need the money.”


http://www.nytimes.com/2008/06/01/fa...621&ei=5087%0A

END OF OLD POST.


Consider those you refer to in your argument. For example, the heads of BEAR STERNS, who at one point owned millions of shares valued at $170 a piece. The CEO, in fact, was worth 1 BILLION USD in stock alone, shortly thereafter valued at $12,000,000. Of course, that is a large sum of money, except for when you consider that he is tied to expenses like the upkeep of a $100MM estate, private jet, fleet of cars, yacht etc... You see where I am going with this. People with this much money often have very extravagant belongings to match, and with an economic downturn, cutbacks must be made EVERYWHERE.

What's more, the extremely wealthy tend to be that way because of extreme thriftiness. They aren't likely to cough up any price Rolex demands simply because they understand the value of money, and how to make it grow. Being reckless with it is not one of those ways. The people that have the most money tend to be the ones who show it the least, and they aren't concerned with showing off their status as much as the next guy. Warren Buffett still drives a BUICK. Think about it.

[scottschoe]

Originally Posted by BigHat

Well, up until this year the US purchased more Swiss watches than any other country. Jan-April of this year Hong Kong edged us out 821.1 million SF to $757.3 million SF. Regarding the Rolex piece of the pie one can only speculate, but judging from the advertising resources devoted, I believe the US market remains a major if not the main focus of Rolex.

Even after a rather unpleasant run in currency exchange rates, is it not true that a given Rolex model sells for less in HK than in the US when measured in US dollars? So why do US prices need to rise when they are higher than the number one Swiss watch market?

I believe the reason why so many AD's recently lost Rolex status was so the company could tighten supply here and shift its focus overseas. While yes the US will always buy a lot of watches, there is more money to be made in China and other nations.

[Sam Taha]

For what it's worth, in the UAE, Rolex has increased prices 4 times in the last 4-5 months, mostly because of the Euro-Dollar rate changes (local currency is tied to the Dollar). The Submariner 16610 now goes for US $6866, which I think is more expensive than anywhere else.

[Thani]

Originally Posted by Sam Taha

For what it's worth, in the UAE, Rolex has increased prices 4 times in the last 4-5 months, mostly because of the Euro-Dollar rate changes (local currency is tied to the Dollar). The Submariner 16610 now goes for US $6866, which I think is more expensive than anywhere else.

4 times??? which AD is this? in satwa??

2 price increases were made this year only..

[BigHat]

Originally Posted by scottschoe

I believe the reason why so many AD's recently lost Rolex status was so the company could tighten supply here and shift its focus overseas. While yes the US will always buy a lot of watches, there is more money to be made in China and other nations.

I have no way of knowing why Rolex delisted ADs or how many they actually delisted. I also have no clue if Rolex is production constrained and has to cut volume to the US to supply other countries. Additionally, I have no idea how more money can be made outside the US in places where, when prices are normalized to the same currency, the sell for less than they do here.