Price increase

[tng11]

Originally Posted by Hendrikus

I find this all rather confusing.

So my AD told me last week (following the arrival of my watch) that if I did not pay the monies before end of February, they had no choice but as of 1st March to impose the new, increased prices.

Users elsewhere on this Board have indicated that there is no 1st March increase, but I saw your post which accorded with that I was told. That said, on the Patek website today the price is exactly as I paid for it and has not been increased.

Whilst I am not too concerned at all about whether or not Patek have increased prices, what I would be unhappy about is if an AD made up information about a bogus price increase in order to pressure a customer in to making a rushed decision or paying more quickly than they can comfortably do (i.e. I was not able to wait 7 days for some monies to be transferred from an investment, meaning I had to use a credit card and incur some fees). I was happy to do that if it meant I was avoiding a price increase but if in fact there was no price increase I have incurred fees I did not need to incur (I could have just paid a deposit and gone back 7 days later to settle the balance).

Can anyone solve this debate?!

The new, increased prices are up on the website.

[BillA]

Originally Posted by Hendrikus

I find this all rather confusing.

So my AD told me last week (following the arrival of my watch) that if I did not pay the monies before end of February, they had no choice but as of 1st March to impose the new, increased prices.

Users elsewhere on this Board have indicated that there is no 1st March increase, but I saw your post which accorded with that I was told. That said, on the Patek website today the price is exactly as I paid for it and has not been increased.

Whilst I am not too concerned at all about whether or not Patek have increased prices, what I would be unhappy about is if an AD made up information about a bogus price increase in order to pressure a customer in to making a rushed decision or paying more quickly than they can comfortably do (i.e. I was not able to wait 7 days for some monies to be transferred from an investment, meaning I had to use a credit card and incur some fees). I was happy to do that if it meant I was avoiding a price increase but if in fact there was no price increase I have incurred fees I did not need to incur (I could have just paid a deposit and gone back 7 days later to settle the balance).

Can anyone solve this debate?!

The increased prices are only for the 5711 and 5712, your 5167a has no increase in price, at this point. Your AD knew of only the 5711/12 increase and not the others, he was BSing you to get you to buy now.

[tyler1980]

Originally Posted by BillA

The increased prices are only for the 5711 and 5712, your 5167a has no increase in price, at this point. Your AD knew of only the 5711/12 increase and not the others, he was BSing you to get you to buy now.

could just be a miscommunication as that 5167 should have had a waitlist anyway so i dont know why they would tell you incorrect info to pressure you into a purchase. Prices will go up at some point and its good you bought now as i highly doubt most AD's would have held it after it arrived anyway. They can sell that in 5 minutes.

Enjoy the great watch Hendrikus

[Carry The Interest]

Now that the price increase is officially in effect, I wonder if we will see a surge of "Incoming" 5711 and 5712 posts in the near term.

Not sure about others, but seeing the new price again on my computer screen today really made me think over how much I actually want the 5711a :-/

[AK797]

Originally Posted by Carry The Interest

Now that the price increase is officially in effect, I wonder if we will see a surge of "Incoming" 5711 and 5712 posts in the near term.

Not sure about others, but seeing the new price again on my computer screen today really made me think over how much I actually want the 5711a :-/

And also if grey prices start to fall. Rolex should be watching closely too.

[Carry The Interest]

Originally Posted by AK797

And also if grey prices start to fall. Rolex should be watching closely too.

Agreed. It should be interesting to see how this plays out.

In "theory" I don't see why a MSRP increase would change the prices on the grey market. Why? Run with the assumption that grey market prices are a barometer for current demand, i.e., the "value" of the 5711 is set by grey dealers and affirmed by people who transact at those prices. If MSRP increases, that shouldn't really have any impact on the value put in place by grey dealers and validated by purchasers since those prices are well above the new MSRP. Introducing a new, higher MSRP shouldn't have any impact on what the market currently thinks the value of the watch is. The only way I see grey market prices changing drastically is if 1) you change supply and/or the perceived rate of watches being delivered or 2) all this "craze" and popularity for these pieces starts to die down. For 1) what I am essentially saying is the price increase itself may not change grey prices, but it may thin the herd a bit on waitlists of credible buyers. If potential buyers start sensing/believing the wait for a new piece isn't as bad as it was before with the new MSRP, demand could start weakening in the grey market. For 2) I really don't know how that happens. I haven't been around long enough (both as a watch enthusiast and human being) to see how these "fads" rise and fall. In my humble opinion, I do believe this craze is not the same as the ongoing Daytona issues with limited supply and grey market premiums. The current premiums on this watch is significantly larger and frankly, unsustainable, from everything I've seen. I do believe this is a temporary craze, to some extent.

What do I think the price increase means in the near term? You may have a few more people moving up quicker than expected on the waitlists. I say this because there are inherently some people on these lists who aren't caught up in all this craze over the watch, price increases, and grey market dynamics. They may get a call for the watch and when they hear of the new price for the first time, may simply pass on the opportunity. Call me crazy, but I think this is very possible. On the flip side, I really have no clue who the buyers are that fuel the grey market today. Maybe they are the types that are completely insensitive to price and think "I want this watch now. It's hot and all the craze. 30K, 45K, 55K...it makes no difference to me"

[GB-man]

I think the 5712 will be much more attainable but not the 5711.

[Vipes]

I have a feeling not too many people will drop off the wait list even with the price increase. The demand for these two pieces are just insane!

[Helmi]

Originally Posted by Vipes

I have a feeling not too many people will drop off the wait list even with the price increase. The demand for these two pieces are just insane!

Fully agree with this opinion.

[rolex_addict]

Demand will remain strong for those two models, maybe the white dial will be readily available

[AK797]

Originally Posted by Vipes

I have a feeling not too many people will drop off the wait list even with the price increase. The demand for these two pieces are just insane!

It is very possible, but the hope is more people think more will drop out so the wait will be shorter so are less tempted to go grey. Plus as greys will just pass this premium on it should decrease demand so this twin effect will put pressure on dealers to lower prices. But it is purely down to their will and so far they have been incredibly resistant to it and are all acting together as a monopoly, much like Patek and Rolex themselves, as they know that the higher conspicuous Veblen prices are, the more the people want it, not less.

[tyler1980]

Originally Posted by Vipes

I have a feeling not too many people will drop off the wait list even with the price increase. The demand for these two pieces are just insane!

i agree. Its sort of an eBay or auction mentality for those on lists already. Basically its "your" watch already and you assign some sort of ownership to it once you are on a list. Similar to bidding on anything at an auction. Thats why people end up bidding higher than they would have otherwise as its psychological as you have to win "your" item. Once you bid once, you think of it as yours.

I do think less people will join a list. Those already on, yeah i think they are staying put.

[codecow]

It will be interesting to see if they fill orders now that the price has increased.

It seemed like a lot of guys on the forum who were waiting for a 5131 ended up getting one around the time that the 5131P was in the works; mine was delivered ~5 months before that Basel and I think maybe 2-3 other people in the forum got them around that time.

[CamSLC]

In all reality if you purchase something that has an immediate intrinsic value 25%++ more than the purchase price, I doubt many will scoff at a few thousand extra dollars at the barrier to entry.

[HAL330]

Originally Posted by rolex_addict

Demand will remain strong for those two models, maybe the white dial will be readily available

nonsense... even the Rose Gold / brown dial is a 2 year wait list these days and carries upwards of a $12000 premium on ebay.. the white dial is 95% as in demand as the blue.. No 5711 will ever be readily available, even if the craze subsides.

[tyler1980]

Originally Posted by HAL330

nonsense... even the Rose Gold / brown dial is a 2 year wait list these days and carries upwards of a $12000 premium on ebay.. the white dial is 95% as in demand as the blue.. No 5711 will ever be readily available, even if the craze subsides.

its in demand, but its only two years to a first time customer walking in off the street. Its not that hard to find with a decent relationship. A SS version relationship or not is a long wait. I think the demand on the R will go up now though as the retail price spread is closer.

[Vipes]

Originally Posted by tyler1980

its in demand, but its only two years to a first time customer walking in off the street. Its not that hard to find with a decent relationship. A SS version relationship or not is a long wait. I think the demand on the R will go up now though as the retail price spread is closer.

I was offered the 5711/1R from my AD a few months ago but I passed since I was waiting on the 5712. I think this price increase is going to push customers to other Nautilus models. These models will be sold at retail prices so it's a win-win situation for Patek, ADs, and grey dealers.

[mps354]

wow, seeing a 5167 on rubber from late 2017 listed for $27.5k.

[GB-man]

Originally Posted by mps354

wow, seeing a 5167 on rubber from late 2017 listed for $27.5k.

Are the migos wearing those as well now?

[tng11]

Originally Posted by mps354

wow, seeing a 5167 on rubber from late 2017 listed for $27.5k.

LOL. When I think of SS Patek, I think of:

[walds11]

Originally Posted by mps354

wow, seeing a 5167 on rubber from late 2017 listed for $27.5k.

Where did you see this?

[mps354]

Originally Posted by walds11

Where did you see this?

European watch co

[walds11]

Originally Posted by mps354

European watch co

Not surprised. Their prices are jacked. That piece is now on hold. They have one available on a bracelet for $26,500