anyone noticed lately - watch brands like to do price increase and discount cuts?

[Mille]

How come recently like this sia.....

The salesperson told me that is due to wage increment, currency exchange fluctuations, increased costs of raw materials, training of skilled watchmakers and other variable overheads. Brand Expansion and marketing...etc

Do you accept what they say or is it greed? Anyway Im quite angry la....cos people who are into watches usually get turned off and they have to look for alternatives elsewhere....

To prove my point, last time in 2006, tag heuer can be bought for less than 1k... omega quartz less than 2k

[pegasi]

This doesn't happen just recently, but for quite a while already.

Price increase and discount cut have the same effect on us the consumers, but they are for two differet purposes.

Price increase is to counter increased manufacturing and operating cost and maintain margin, while discount cut is meant to narrow the gap between ADs and boutiques (where no discount is given). Whether the increase is justifiable or too often, is a discussion of world economics.

We just have to accept it as part of inflation. Like someone said: no more $2 chicken rice liao...

[triton]

there is a conspiracy theory that the price increase is in hope to say company X has increased sales. with increased sales, there is a perceived increase in profit. this increase in profit to show shareholders of the company that the person who is leading the company is doing a good (subjective) job. this will in turn will be used as a bargaining chip to ask for higher salary.

and yes, production costs have increased, but does the price increase equate to the proportion of list price being raised.

discount reduced to narrow the gap between AD and boutique? im not into this theory. sinn does not have a boutique shop right? yet prices are ever increasing and discount is also being reduced.

well, can still find $2 chicken rice. why cannot do? if a plate of $3 chicken rice is one bowl of rice and say 7 pieces of chicken meat. for $2, just serve ¾ bowl of rice and 3 pieces of chicken meat. for tao bao, no more plastic bag provided, no more plastic spoon provided.

This doesn't happen just recently, but for quite a while already.

Price increase and discount cut have the same effect on us the consumers, but they are for two differet purposes.

Price increase is to counter increased manufacturing and operating cost and maintain margin, while discount cut is meant to narrow the gap between ADs and boutiques (where no discount is given). Whether the increase is justifiable or too often, is a encomonic discussion

We just have to accept it as part of inflation. Like someone said: no more $2 chicken rice liao...

[mkv]

Quite tough times for the consumers.
Yesterday I went to HG in Takashimaya, was quoted 0% discount for sports model!

zzzz

[pegasi]

Another key factor that influent prices is competition.

When a brand is in a dominant position (so call the market leader), they have no pressure to keep their prices competitive. In fact they would be more conscious to keep their prices at the high end to keep up their brand image. In the case of watches, this is what is calld a luxury brand/product.

When you but a luxury brand/product, you don't just pay for the item (cost), but also for the brand.

[Mille]

True....let's keep the discussions going....

[exxondus]

actually preown prices also increase lately...so not only the brand new watch market

[triton]

for preown if there is price increase, partly due to demand and supply. also not sure if there is a link to the price of new pieces.

actually preown prices also increase lately...so not only the brand new watch market

[pegasi]

there is a conspiracy theory that the price increase is in hope to say company X has increased sales. with increased sales, there is a perceived increase in profit. this increase in profit to show shareholders of the company that the person who is leading the company is doing a good (subjective) job. this will in turn will be used as a bargaining chip to ask for higher salary.

Like that I can also be a CEO or a Head of Sales of Rolex liao.

Unless the person who leads the company is going to be at the helm for short term, he will not rely on such measure to "boost" result. Such annual or bi-annual price adjustment is more likely to be a standard process in these luxury goods companies, meaning the profit are also likely to be included in the budget/sales projection.

While profit is one the most important KPI, companies nowadays do not assess performance just base on margin (though that's still the biggest part), but also sales volume, growth, market share, or even brand value (and yes this is measurable).

[lthg25]

I actually believe by increasing price and controlling discounts, the company is actually helping the brand name. Last thing you want as a consumer if to know that you could have gotten the same product at a much cheaper price at the same shop if you bargained more aggressively. Nor would you enjoy knowing that the same product can be bought 50% cheaper in another country, somehow makes the brand "cheaper".....

[eastsider]

I was a Tag fan since 10 years ago but never gotten any REAL expensive watches cus never found a watch that i reallyyyyyyyy like....i started paying attention to Rolex a month ago and now I'm a proud owner of the milgauss black faced.

i am no expert in watch, i dun even understand how come the watch dont need battery to operate...haha...

anyway when i went to different THG during the past few months I was quoted the retail price and my friend told me they will have discount if I were to ask....So I was actually quite surprised that Rolex give discounts.....I tot Rolex should run its business like LV, NO DISCOUNT EVER cus honestly speaking, discount will make consumers run around asking for better discounts....if it's straight forward price, this will speed up consumer's purchase too....now that I have gotten my watch, i have this evil thought rolex increasing its price so that I will feel lucky for buying it before price increase (just like ppl who bought the car before COE hike)...hehe

[Oceanklassik]

Price increase is not important
Important is brand exclusitivity and prestige
If rolex Ever allow itself to become cheap like omega and panerai, i would drop the brand and collect More expensive brands

I think you are asking for trouble

[seiko.citizen]

Erm... Should i start to collect omega and panerai now?

i thought you said panerai and omega are cheap watches? you want to collect cheap watches?

[monstaR]

Erm... Should i start to collect omega and panerai now?

I don't think Pam's are cheap mate I don't own one now but they are priced at the same level as Rolex?

[seiko.citizen]

in some cases more than rolex.