Pricing rumour

[psv]

This is the best 175th anniversary celebration ever. But US prices still need to come down, not fair that we pay a huge premium, HK now pays $14,500 for a 5167/1a.

[GB-man]

Originally Posted by yjfang

Good thing I bought my 5980 to wear and not as an investment.

[GB-man]

Originally Posted by psv

This is the best 175th anniversary celebration ever. But US prices still need to come down, not fair that we pay a huge premium, HK now pays $14,500 for a 5167/1a.

It keeps going in this direction you just might get a new 5167 back at the price you sold your last one for

If I recall you had one and sold it before all the increase hoopla?

[RockinIt]

This is greatly welcomed and good thing I didn't pull the trigger on a 5980

[MrJ320]

Originally Posted by autohorology

So I wonder then if they're lowering the AD profit margin? Meaning they're reducing MSRP 7% in the U.S., but keeping the dealer invoice the same? That would really curb dealer discounts actually...

I am interested in this as well and assuming they should be keeping dealer invoice the same or else I agree I can't see how it will curb dealer discount and will definitely bring down secondary market prices if dealer invoice also drops by 7%.

[dchang81]

does the HKD price list include a VAT? If so, im in asia now, would be an easy flight...

[GB-man]

Originally Posted by psv

This is the best 175th anniversary celebration ever. But US prices still need to come down, not fair that we pay a huge premium, HK now pays $14,500 for a 5167/1a.

On second glance Patrick doesn't 152300 in HKD equate to 19642 USD? Unless there's something I'm missing that's nowhere near 14500.

[agsstructures]

Originally Posted by psv

This is the best 175th anniversary celebration ever. But US prices still need to come down, not fair that we pay a huge premium, HK now pays $14,500 for a 5167/1a.

I get around $17K based on the HK price list. I might be doing something wrong though but $14.5K is a great price!

[Kadhytia]

Originally Posted by psv

This is the best 175th anniversary celebration ever. But US prices still need to come down, not fair that we pay a huge premium, HK now pays $14,500 for a 5167/1a.

Isnt it supposed to be 18,000 USD in HK?

[Puffy]

Originally Posted by rebel_1

It will be interesting to see the US prices. Based on the HK prices, the US market seems to be at a premium.

That is an insane price

Getting the vat back?

[GDOG]

Originally Posted by knobberboy

I get around $17K based on the HK price list. I might be doing something wrong though but $14.5K is a great price!

I think he is referring to 14.5K as dealer cost ?

I'm using .129 as of today or $17K USD Retail in HK?

[bh_horology]

Originally Posted by bombardior

here's the new HK price list for anyone interested......
seems way too steep to me. probably a 10% drop (combined with the 8% increase in EUR) would've been fine if they were worried about moving inventory and bringing global prices in line with each other...

now i feel like it's way too low that everyone will just buy from HK instead of EUR

US people should just buy from HK. The 59801R is 591,800 HKD which is $76,325. Prior US List price was $91,400 and after 7% decrease that is $85,000. That is 10% less. How is this helping with grey market imports?

[HL65]

Originally Posted by ashkapur

US people should just buy from HK. The 59801R is 591,800 HKD which is $76,325. Prior US List price was $91,400 and after 7% decrease that is $85,000. That is 10% less. How is this helping with grey market imports?

On tough to get pieces you still have to source one and that one is an allocation piece to dealers and still on back order. Remember Patek is not increasing production. Tough to source watches are still tough to source regardless of price.

[bombardior]

Originally Posted by dchang81

does the HKD price list include a VAT? If so, im in asia now, would be an easy flight...

no tax in HK so price you see is price you pay...

[GB-man]

Originally Posted by knobberboy

I get around $17K based on the HK price list. I might be doing something wrong though but $14.5K is a great price!

Yeah 17 on the 5167a, but we were quoting 1/a with bracelet.

[bombardior]

Originally Posted by Kadhytia

Isnt it supposed to be 18,000 USD in HK?

Originally Posted by GB-man

On second glance Patrick doesn't 152300 in HKD equate to 19642 USD? Unless there's something I'm missing that's nowhere near 14500.

its 17k based on that list. just about what greys are selling here as a mint second hand...

[Shem]

I have to suspect PP realizes that this move will upset collectors in the short term but believes that controlling the grey market better will protect the brand and values in the long term. They, like Rolex, seem to play the long game on most issues. Interesting development, though, especially as I've been considering selling everything and buying a 5712. :P

[cinch]

Any news on the UK prices?

[psv]

Originally Posted by GB-man

It keeps going in this direction you just might get a new 5167 back at the price you sold your last one for

If I recall you had one and sold it before all the increase hoopla?

Yeah, I bought mine a few years ago, before the Patek hype (read Hodinkee) and I think I paid $13,500 from US AD after discount. Sold it for more to some dude in the UK.

And yes, I only price the 5167/1a on the strap, that is the original configuration on that watch, and far better looking IMO.

[mfer]

So a 5711 is still too expensive (for me)!
$26,700 to $24,800

So crazy that it is roughly $2500 (~11%) cheaper in HKG ($22,300). If you could source one, it would be cheaper to fly there and buy (not including hotel).

[HL65]

Originally Posted by cinch

Any news on the UK prices?

Yes they remain the same.

[bombardior]

Originally Posted by mfer

So a 5711 is still too expensive (for me)!
$26,700 to $24,800

So crazy that it is roughly $2500 (~11%) cheaper in HKG ($22,300). If you could source one, it would be cheaper to fly there and buy (not including hotel).

yea, apparently there are plenty of 5711 blue dials in HK before this price decrease. i'd imagine they would get grabbed pretty fast.
i actually bought my 5711 3 months ago here in the US, then traveled to HK for a bit, and only recently returned.... bummer

[autohorology]

Consider this, prices on three popular references in 2008 compared to just before this price reduction:

5167: $15,200. Compared with $20,300.
5711: $19,900. Compared with $26,700.
5712r: $29,900. Compared to $46,700.

So one could still argue if you bought years ago, you're still fine today. However, I think the 2008 numbers make a LOT better sense!!

[bombardior]

wow, i'm sort of new to the PP game... do you remember/mind sharing what the price trend has been like, say in the past 10 years?
all i know is there hasn't really been a price change since 2012.
what about before that?
was there ever a price decrease? in the bad 2008 economy? then came back up as the economy recovered?

Originally Posted by autohorology

Consider this, prices on three popular references in 2008 compared to just before this price reduction:

5167: $15,200. Compared with $20,300.
5711: $19,900. Compared with $26,700.
5712r: $29,900. Compared to $46,700.

So one could still argue if you bought years ago, you're still fine today. However, I think the 2008 numbers make a LOT better sense!!

[el1125]

Correct me if I'm wrong but the HK price list above still allows for a 10% discount? Typically all PP in HK are (have been) sold for list less 10%.

[bombardior]

i would guess that to be no longer the case (which is probably what PP wanted) provided the reduced prices come from the MSRP side and not the dealer invoice cost side...

Originally Posted by el1125

Correct me if I'm wrong but the HK price list above still allows for a 10% discount? Typically all PP in HK are (have been) sold for list less 10%.

[bh_horology]

Hong Kong is clearly a bigger market for PP. I did some quick research.

HK Total Population: 7.2M
Total PP ADs: 14

NYC Population: 8.4M
Total PP ADs: 3

[bombardior]

i browse chinese watch forums quite frequently as well. judging from their reactions to this price decrease in HK, i would add the fact that mainland chinese shoppers can now easily go to hong kong and pick up a PP, instead of the currently popular method of sourcing one from germany via a grey dealer. (there are a currently quite a few Takuya/DavidSW equivalents catering to the chinese this way).

oh a side note, mainland china prices are still astronomically high.... even with the 3% decrease, prices are still 50% more expensive than almost anywhere else in the world....

Originally Posted by ashkapur

Hong Kong is clearly a bigger market for PP. I did some quick research.

HK Total Population: 7.2M
Total PP ADs: 14

NYC Population: 8.4M
Total PP ADs: 3

[de66]

I do believe that with this current development PP have succeeded in making their products the most attractive when bought in Switzerland.
I was quoted new price of 37050CHF for the 5726a bracelet.
Subtract 8% vat and this comes to 34306chf.
Hongkong price would be 36800chf at a rate of 0.1196. You need an additional 6.5% discount to equal the Swiss prices.

I say come over here and have a Fondue!

[HL65]

Originally Posted by bombardior

i would guess that to be no longer the case (which is probably what PP wanted) provided the reduced prices come from the MSRP side and not the dealer invoice cost side...

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.