AP price increase in Jan 2020

[m3jasper]

Originally Posted by GS93108

AP's UK price increase a few months ago was most likely due to a re-balancing of the GBP to the CHF. To be honest, it was to be expected, as are other price 'balancing' changes for other currencies when compared to the CHF.

It would seem that the latest round of price increases are somewhat global and thus an 'inflation' price increase by AP or simply their prerogative to position their product pricing at a rate that the market will stand.

Price balancing of CHF to global is fine by me, we live in a global economy and that's a consequence.

Price increases for inflation purposes is again something that we should expect.

Price increased on an adhoc basis to capitalise on the market isn't something that I'd have thought was coming, but if that's the reasoning behind it then so be it.

From my perspective, I have a 15407 on order and a 'wish' for another item. The 15407 has just had an increase of nearly 20% in the UK, but I'll still be grateful when it arrives, as my only other option is to pay nearly 40% more than the new price list by going grey.

Frankly, these price increases are a first world problem. The price is the price, take it or leave it. Current owners will be happy as their watches have instantly appreciated, where as new purchasers are the ones actually being 'hit'.

All in all, ho hum and on we go.

Well said.

[jaydav2306]

Wow standard Diver in the UK up to £19,400 GBP

[NYG1121]

Increasing price doesn’t automatically mean the secondary market or demand will follow. Ask any brand not named Rolex. Rolex price increases are gradual and modest. AP has gone bananas in a very short time and IMO was on the right track stabilizing secondary market and brand perception. This totally undermines that and it’s a big risk

[Jp28]

Originally Posted by NYG1121

Increasing price doesn’t automatically mean the secondary market or demand will follow. Ask any brand not named Rolex. Rolex price increases are gradual and modest. AP has gone bananas in a very short time and IMO was on the right track stabilizing secondary market and brand perception. This totally undermines that and it’s a big risk

Some good points here.

[AK797]

Originally Posted by jaydav2306

Wow standard Diver in the UK up to £19,400 GBP

Could buy these unworn for £8K just a few years ago.

[AK797]

Originally Posted by NYG1121

Increasing price doesn’t automatically mean the secondary market or demand will follow. Ask any brand not named Rolex. Rolex price increases are gradual and modest. AP has gone bananas in a very short time and IMO was on the right track stabilizing secondary market and brand perception. This totally undermines that and it’s a big risk

PP price rises were passed straight on so it's not only Rolex, AP do seem to be really raising prices as they want to close any grey gap, will be interesting to see how it plays out.

[NYG1121]

Originally Posted by AK797

PP price rises were passed straight on so it's not only Rolex, AP do seem to be really raising prices as they want to close any grey gap, will be interesting to see how it plays out.

Right but PP was never in the dumps in the secondary market like AP was a short while ago. This seems like a greedy attempt to maximize profits to me. I am not sure it will pay off for them

[bobodrink]

Seems to me a lot of folks here hasn't been in the game long enough. Watch companies revise their pricing quite often, so often that they actually can change prices twice a year. AP reduced their prices twice in one year in the early 2000s, and in the 2010s they increased prices twice a year or they can stay put for years. It is not about justification of the product, it a mixer of demand, currency, market and raw material costs.

[GB-man]

Originally Posted by NYG1121

Right but PP was never in the dumps in the secondary market like AP was a short while ago. This seems like a greedy attempt to maximize profits to me. I am not sure it will pay off for them

Not sure where you get that notion just a few years ago most nautilus sold well below msrp secondary. 5711 blue was the only one that was around msrp plus tax used. To this day anything on a strap not enamel tanks hard.

[GreenLantern]

Originally Posted by GB-man

Not sure where you get that notion just a few years ago most nautilus sold well below msrp secondary. 5711 blue was the only one that was around msrp plus tax used. To this day anything on a strap not enamel tanks hard.

That's a good point, but AP still was more in the dumps than PP was with the Nautilus.

[EdwardC]

Is this the reason why so many used 15450 are gone? I recall a week ago there were at least 2 available in DavidSW and now there's nothing

[NYG1121]

Originally Posted by EdwardC

Is this the reason why so many used 15450 are gone? I recall a week ago there were at least 2 available in DavidSW and now there's nothing

Pulled so they can be put back up for sale at a much higher price

[strettyend]

Lucky to have bought a BNIB 15450 for $14k usd last year...

[MrBlahBlah]

Originally Posted by GS93108

AP's UK price increase a few months ago was most likely due to a re-balancing of the GBP to the CHF. To be honest, it was to be expected, as are other price 'balancing' changes for other currencies when compared to the CHF.

It would seem that the latest round of price increases are somewhat global and thus an 'inflation' price increase by AP or simply their prerogative to position their product pricing at a rate that the market will stand.

Price balancing of CHF to global is fine by me, we live in a global economy and that's a consequence.

Price increases for inflation purposes is again something that we should expect.

Price increased on an adhoc basis to capitalise on the market isn't something that I'd have thought was coming, but if that's the reasoning behind it then so be it.

From my perspective, I have a 15407 on order and a 'wish' for another item. The 15407 has just had an increase of nearly 20% in the UK, but I'll still be grateful when it arrives, as my only other option is to pay nearly 40% more than the new price list by going grey.

Frankly, these price increases are a first world problem. The price is the price, take it or leave it. Current owners will be happy as their watches have instantly appreciated, where as new purchasers are the ones actually being 'hit'.

All in all, ho hum and on we go.

I’m sorry, this is a bit of a ridiculous comment. First of all, inflation adjustment, this is not - inflation is at an all time low in large developed economies, so much so that it’s considered a problem that inflation is so low.

Second, the fact that you are belittling that it’s no skin off consumers’s back to pay an extra $3,000 is a bit absurd. That’s real money to a lot of people. Kudos to you to not care about your 20% price increase. If we could all be so laissez-fair about our savings!

And sure, no problem for you and your watch on order, given the premium it fetches on the secondary. You’re taking no risk, regardless of price increase.

The only reason I’d tip my hat to your argument is the fact that these are all unnecessary, luxury goods, so if its too rich for one’s blood, well, no one will truly be suffering if they are indeed priced out.

[Covello]

Originally Posted by Collector2019

Very smart move. I didn’t expect a price increase and was waiting for the right moment to order one but now I am reconsidering!


Sent from my iPhone using Tapatalk

I wish I could have taken credit for it being "smart"! More lucky. I was planning on buying in Jan, but a friend called and the next thing I knew I was racing to the boutique in December before it closed.

Originally Posted by rambo99

the price increase is just insane! and you are the lucky, lucky one, congratulatiosn!

I do feel lucky!! Thank you!

The increases are just insane. I'd be so pissed if I had one on hold and was waiting through the new year.

[donald83]

Really lucky to get my 15450 in Dec 2019 before the price inslcrwase at SGD 23.1k. Now it is at SGD 27.1k

Sent from my VOG-L29 using Tapatalk

[Henlo]

Originally Posted by donald83

Really lucky to get my 15450 in Dec 2019 before the price inslcrwase at SGD 23.1k. Now it is at SGD 27.1k
...

Sent from my VOG-L29 using Tapatalk

Luck you! Love the 15450!

May i ask what your wrist size is?

[donald83]

Originally Posted by Henlo

Luck you! Love the 15450!



May i ask what your wrist size is?

6.25 inches. Another pic for reference

Sent from my VOG-L29 using Tapatalk

[AK797]

Originally Posted by donald83

6.25 inches. Another pic for reference

Sent from my VOG-L29 using Tapatalk

Well done on the price and that is the right size for you.

[sn1109]

Rumors tell AP price will go up again starting July, 2020. Anyone any detail?

[cesco10]

Originally Posted by sn1109

Rumors tell AP price will go up again starting July, 2020. Anyone any detail?

Yes, it’s not a rumor. An average of 6%.

[Takonwong]

Worldwide or only certain markets?

[NYG1121]

AP will become the new Omega. Sadly.

Rule #1 of creating a desirable, luxury brand is to maintain exclusivity while still having people feel it is achievable. I am afraid they will just price people out of the brand.

[Boxer321]

Originally Posted by NYG1121

AP will become the new Omega. Sadly.

Rule #1 of creating a desirable, luxury brand is to maintain exclusivity while still having people feel it is achievable. I am afraid they will just price people out of the brand.

sorry can you elaborate? I thought omega is more affordable

[NYG1121]

Originally Posted by Boxer321

sorry can you elaborate? I thought omega is more affordable

They raise prices to try to maximize profit. In return, their product doesn’t hold the same value relative to MSRP in secondary market. Right now, AP is able to do this because brand is hot so it holds value. But it is not the best long term model. Otherwise rolex will raise steel daytona price to 20k tomorrow

[singe89]

Originally Posted by NYG1121

AP will become the new Omega. Sadly.

Rule #1 of creating a desirable, luxury brand is to maintain exclusivity while still having people feel it is achievable. I am afraid they will just price people out of the brand.

Not sure I get that connection? AP isn't trying to be achievable for the masses. Unlike the Rolex marketing machine that portrays exclusivity yet mass produces watches that most can save to afford, AP wants more of the Patek but really more of the RM model of limiting production, consolidating sales to boutiques and controlling the customer experience. Look how many $100k+ watches AP has produced lately and there doesn't see to be a shortage of people buying those.

[singe89]

Originally Posted by NYG1121

They raise prices to try to maximize profit. In return, their product doesn’t hold the same value relative to MSRP in secondary market. Right now, AP is able to do this because brand is hot so it holds value. But it is not the best long term model. Otherwise rolex will raise steel daytona price to 20k tomorrow

AP can easily make the comparison that the 15202 at $25,800 is on par with the 5711 at 30,620 and close that retail gap especially as their brand is gaining in popularity. Cutting out ADs is what really boosted their margin.

They do have to protect it by making sure they sustain the demand at least at that retail price and if they have full control of their distribution strategy through boutiques rather than ADs its possible. Only time will tell.

That said AP and Patek has cut prices in the past too and sucked to be on that end of it as an owner but they cut AD margin at the same time that eventually made the secondary market stronger with less discounts.

[Collector2019]

Originally Posted by NYG1121

AP will become the new Omega. Sadly.

Rule #1 of creating a desirable, luxury brand is to maintain exclusivity while still having people feel it is achievable. I am afraid they will just price people out of the brand.

And if not following your rules it’ll become omega? What about RM? They don’t seem to me becoming omega? Can you explain how they keep increasing prices and yet you can’t even get on the list?

By the way omega is fantastic watchmaker with very rich history


Sent from my iPhone using Tapatalk

[AK797]

Originally Posted by Collector2019

And if not following your rules it’ll become omega? What about RM? They don’t seem to me becoming omega? Can you explain how they keep increasing prices and yet you can’t even get on the list?

By the way omega is fantastic watchmaker with very rich history


Sent from my iPhone using Tapatalk

I think Omega are doing quite well, obviously the shortages at Rolex are getting them alot of overflow demand, but some new pieces like the new SMP have been well received, they could still do with not over-saturating on LEs etc, AP should beware of that too, but there again there is Patek money to be taken too.

[NYG1121]

Guys I am a big AP fan. I just think this is a very slippery slope. Hope it works out for them and for all of us as well