The price adjustments have started!

[RUK]

Looks like Lange has started bringing in affordable high end watches. It's a great move as said in the Hoinkee article.

37mm dress watch under 15k wow! Patek and VC will probably follow soon with revised lines. I was going to get a 5196 but this makes me think twice!

http://www.hodinkee.com/articles/the...ficial-pricing

[PJ S]

So 40=25, yet 37=15?
Oh how I wish I could really say what I think, but someone’s havin' a giraffe – and it ain’t the consumer.
Of course, the real price adjustment should be that the 40mm is reduced to $18K or less, but they won’t do that because all the current owners would be up in arms.

[OmegaJJH]

Blimey that's a pretty watch.

Good value too (at 37mm)

[ansharma]

Wow thanks for sharing....I can certainly think about adding this to the list!

[themaninblack]

Hodinkee = lol

[RationalPragmatist]

Priced to move at 15K

[jon_jon]

Interesting pricing by ALS!

I am curious to see how the price will be in the secondary market since there is usually a modest difference between retail and secondary market pricing for ALS watches.

[texex91]

Originally Posted by RUK

37mm dress watch under 15k wow! Patek and VC will probably follow soon with revised lines.

Don't know about VC but don't expect Patek.

[buzzman]

Wonder how this strategy will affect PM JLC pieces...

Seem to recall a manual wind RG ultra thin with no seconds being available at around 12K MSRP. No longer see it on JLC's website...

Richemont has been doing some interesting tiering in their portfolio between VC, JLC, and Montblanc (see e.g., https://monochrome-watches.com/compa...tre-montblanc/) Will be curious to see how ALS fits in the strategy with these new prices...

[jd57]

Supposedly all the Richmont companies (JLC, IWC and VC for certain) have been dropping wholesale prices - Lange the one hold out. Hard to imagine this isn't the start of a broader price reduction by ALS (perhaps wishful thinking).

[thomaspp]

Originally Posted by jon_jon

Interesting pricing by ALS!



I am curious to see how the price will be in the secondary market since there is usually a modest difference between retail and secondary market pricing for ALS watches.

Agree!

But "Modest"? Rolf...

This one will go for $7k before long.


Sent from my iPhone using Tapatalk

[buzzman]

Originally Posted by jd57

Supposedly all the Richmont companies (JLC, IWC and VC for certain) have been dropping wholesale prices - Lange the one hold out. Hard to imagine this isn't the start of a broader price reduction by ALS (perhaps wishful thinking).

Absolutely right, if I recall JLC dropped prices not too long ago.

To more specifically articulate my point, it seems with this move, Richemont is really tackling their portfolio to try and offer something at every price point, enticing buyers to move "one step up" each step of the way

If we look at simple time only watches, see the following:

MB Ultra Slim Steel: ~2,000
MB Ultra Slim RG: ~6,000
JLC Ultra Thin Steel: ~7,000
JLC Ultra Thin RG: ~14,000
ALS Saxonia Thin RG: ~15,000
VC Patrimony RG: ~18,000

Clearly see ALS being positioned right between JLC and VC on the PM scale. Given the very close proximity between JLC and ALS on this, would imagine many consumers would opt to spend the extra 1,000 on ALS over the comparable JLC (recognize the JLC here is auto with small seconds--comparable model appears to be discontinued, though was ~12-13K MSRP)

If this becomes the norm, would anticipate demand for JLC PM models to shift to more complicated models where still offer the value proposition e.g., MUT Moon at ~18K vs ALS Saxonia Moon at ~29K.

View is that with these pricing strategies, Richemont will actually get consumers to spend a bit more than they would have otherwise, by always "stepping up" a level since its so close, either by going to the next brand up for a premium, or by getting more complication for "less"

[77T]

I certainly like the new watch and the size for a dress watch.

A move down market price-wise could be good for volume if they can churn out enough product to overcome the drain on their higher end. By drain, I mean the lost sales from those longtime high-end clients who might think twice about the brand as it gains that down market foothold.

[RUK]

All the comments above are very valid. The CEO of the group has been very vocal on the topic of prices and how price inflation has affected the market. This is obviously a correction. Any brand will lose face if they drop prices, so the most logical way to keep business is to introduce models that are more accessible but at more or less the same quality. If things go well for industry they can simply discontinue the model and if things get bad they can rely on the lower priced models to hold them above the water.

IWC has already has some changes with the pilots line and I can only assume that JLC will have some adjustments soon too. Although Patek is unlikely to drop prices I can certainly see them doing something similar - possibly a lower priced Calatrava

[lapince]

Originally Posted by thomaspp

Agree!

But "Modest"? Rolf...

This one will go for $7k before long.


Sent from my iPhone using Tapatalk

Yeah I agree with the "modest", when a salesperson tried to sell me a dato perpetual with no discount saying it would keep it's value, I had a hard time not laughing, and I really exploded when I saw the prices new or preowned on Chrono24, basically 45 to 60% off preowned. would have the impression of wearing my grand father's watch but that's just me, if some people like them that's fine...

[jon_jon]

Originally Posted by thomaspp

Agree!

But "Modest"? Rolf...

This one will go for $7k before long.


Sent from my iPhone using Tapatalk

Originally Posted by lapince

Yeah I agree with the "modest", when a salesperson tried to sell me a dato perpetual with no discount saying it would keep it's value, I had a hard time not laughing, and I really exploded when I saw the prices new or preowned on Chrono24, basically 45 to 60% off preowned. would have the impression of wearing my grand father's watch but that's just me, if some people like them that's fine...

Very true that ALS prices drop 30-60% on the secondary market. I think it is harder for ADs to move ALS timepieces for this reason, compared to Patek, Rolex, AP, etc.

[spirit909]

hmm, a very good watch for that price! what are people's thoughts on why the ALS drop so much? I actually recently bought a L1 myself (my first foray into the world of high end watches) and love it to bits even if the resale value isn't great..

[bardamu]

Originally Posted by RUK

Looks like Lange has started bringing in affordable high end watches. It's a great move as said in the Hoinkee article.

37mm dress watch under 15k wow! Patek and VC will probably follow soon with revised lines. I was going to get a 5196 but this makes me think twice!

http://www.hodinkee.com/articles/the...ficial-pricing

VC just released the updated Quai de l'Ile at the same price point, undercutting their previous entry level model (Overseas) by several thousand. I don't think they'll introduce a precious metal dress watch at a level lower than where they are now. ALS's new piece is a precious metal dress watch, but that's because they only offer precious metals.

In looking at new watches from IWC, Panerai, and JLC, it looks like Richemont asked all of their brands to introduce at least one more affordable piece.

[jon_jon]

Originally Posted by spirit909

hmm, a very good watch for that price! what are people's thoughts on why the ALS drop so much? I actually recently bought a L1 myself (my first foray into the world of high end watches) and love it to bits even if the resale value isn't great..

I would say most watch prices drop significantly from their retail price aside from SS models from Rolex, AP and PP. I think the secondary market prices reflect the demand out there for these watches, rather than the actual retail prices that watch manufacturers set.

[wisguy]

Will get mine early August!

Saxonia Ultra Thin 37mm in WG to replace a JLC Master Ultra Thin Moon 39 in SS

Awesome price for a great watch

[capote]

Its an interesting development, also considering that perpetual calendars from JLC, Montblanc and FC (?) are offered at levels not seen before. The Lange is a beatiful watch and I bet it will sell like crazy, the step to VC's Patrimony small seconds is actually some thousands.

Patek is bound to release a new manual wound time only watch too. AFAIK they don't have any modern size caliber, aside from the rectangular found in the Gondolo line.

[Le Chef]

I don't see this as a price adjustment by Lange as a shift in the market mix of models. I also can't see them dropping prices when their major competitor at that level in the market won't cut wholesale or retail prices. Lange also has to keep it's distance in terms of positioning from Vacheron or run the risk of messing up Richmont's portfolio management. Vacheron should be a more natural competitor to AP than stuck on no man's land.

At this level if you're volume is down, you cut production to ensure there's a match for current demand. You're capitalized - ride it out until the market comes back.