Are AP Price Cuts on the Horizon?

[Gandor]

Anyone else feel like 2024 is the year AP will offer more price cuts?

Last year we saw price cuts in the PM 11.59 chronographs and that was when the hype train still very much chugging along. Now with a market lull I suspect that we might see even more cuts, mostly to precious metal and high complications, I don't think steel has any room to move even with market trends. Any thoughts?

[Nikrnic]

I agree with your assessment


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[In-N-Out]

I doubt they will but I guess anything is possible. a material price cut on a veblen good would significantly reduce demand and make second hand prices decline, which would further lower demand long term. It would be nice to see both the code and ro qp drop 10-15% in pricing though

[VogelPhoenix]

Originally Posted by In-N-Out

I doubt they will but I guess anything is possible. a material price cut on a veblen good would significantly reduce demand and make second hand prices decline, which would further lower demand long term. It would be nice to see both the code and ro qp drop 10-15% in pricing though

QP is supposed to get a new movement, I doubt they will lower the price of the updated model (or have a sale on the outgoing one).

[Gandor]

Originally Posted by In-N-Out

I doubt they will but I guess anything is possible. a material price cut on a veblen good would significantly reduce demand and make second hand prices decline, which would further lower demand long term. It would be nice to see both the code and ro qp drop 10-15% in pricing though

Sure, but AP literally did a price cut last year on the 11.59 chronographs. Secondary prices remained mostly the same because the discrepancy between MSRP and resale was so drastic even with the cut.

The 11.59 QP for example can be had for almost HALF msrp. If AP were to do a 20% cut it will still be significantly over market value AND over the release MSRP and really have no effect on the second hand prices i'd reckon.

[Gandor]

Originally Posted by VogelPhoenix

QP is supposed to get a new movement, I doubt they will lower the price of the updated model (or have a sale on the outgoing one).

A man can dream haha

[DonLee]

Originally Posted by Gandor

Anyone else feel like 2024 is the year AP will offer more price cuts?

Last year we saw price cuts in the PM 11.59 chronographs and that was when the hype train still very much chugging along. Now with a market lull I suspect that we might see even more cuts, mostly to precious metal and high complications, I don't think steel has any room to move even with market trends. Any thoughts?

considering how the raised the price for perpetual calendars by 25% in a single go, it's hard to say. But if they keep raising prices, things may go very sour

[Octagon Guy]

Originally Posted by Gandor

Last year we saw price cuts in the PM 11.59 chronographs and that was when the hype train still very much chugging along.

Originally Posted by Gandor

AP literally did a price cut last year on the 11.59 chronographs.

Originally Posted by DonLee

But if they keep raising prices, things may go very sour

Adjusting prices down leaves a more sour taste for their loyal Boutique clients who bought from them at higher prices. It's as if getting played out big time by the Boutiques themselves. Boutiques have no control over market prices but the least they can do is, maintaining their own retail price when economy is not doing well.

Raising prices on the other hand, though priced out many above average income clients, but they do not have a lack of ultra rich clients to sell to.

My 2 cents.

[Ramathorn]

I believe they will eventually reduce prices. They didn’t learn their lesson from years past. Does anyone not remember the 18% price decrease they did on PM references back in 2013? That’s a 4-5 digit price drop on some references! People were livid who had just paid the old MSRP.

There was a thread on this exact forum about it. Need to get to ten posts before I can post the link.

[Ramathorn]

.

[Ramathorn]

AP price decrease thread.

https://www.rolexforums.com/showthread.php?t=276905

[Commandopat]

Crazy to see them talking about 30% discounts lol.

[gretch6364]

Do you really think k AP has a bunch of unsold perpetual calendars sitting on the shelf? If not, no reason for them to lower those prices.

On the Code…maybe they simply focus on SS or when they re-release a new gold chrono, it comes in at a lower premium then before.

[Vince_76]

Originally Posted by Ramathorn

AP price decrease thread.

https://www.rolexforums.com/showthread.php?t=276905

Thanks. This is crazy

[texasmade]

Originally Posted by Ramathorn

I believe they will eventually reduce prices. They didn’t learn their lesson from years past. Does anyone not remember the 18% price decrease they did on PM references back in 2013? That’s a 4-5 digit price drop on some references! People were livid who had just paid the old MSRP.

There was a thread on this exact forum about it. Need to get to ten posts before I can post the link.

2013 was a completely different market than 2023/2024. If there is a price cut I wouldn't expect a big one. Maybe a few % in a few markets under the guise of FX.

[Ramathorn]

Originally Posted by texasmade

2013 was a completely different market than 2023/2024. If there is a price cut I wouldn't expect a big one. Maybe a few % in a few markets under the guise of FX.

That's what they always say and what was said prior to the March 22' peak.

It can go full circle. Nothing is guaranteed.

[mickyd329]

Originally Posted by Commandopat

Crazy to see them talking about 30% discounts lol.

I remember those days... RO's were readily available at a discount at AD's and boutiques. Pretty much any AP was available NIB with your name on the warranty for at least 25% off from the grey market. I got my wife an ROO through a grey dealer at 30% off and the watch came from AP themselves in NY. Different times..

I also remember buying my 26405CE ROO and they adjusted the MSRP down from $40k to the low $30k's. I think price increases at this point is not going to go over very well.

[Reign]

Originally Posted by mickyd329

I remember those days... RO's were readily available at a discount at AD's and boutiques. Pretty much any AP was available NIB with your name on the warranty for at least 25% off from the grey market. I got my wife an ROO through a grey dealer at 30% off and the watch came from AP themselves in NY. Different times..

I also remember buying my 26405CE ROO and they adjusted the MSRP down from $40k to the low $30k's. I think price increases at this point is not going to go over very well.

I remember those days too. Gray dealers actually served the purpose of helping brands move inventory versus their role in the market today.

In todays market - they won’t adjust down but they may lob in a discount here and there


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[HMHM]

I think price cut would be a terrible mistake. Either they cut production so significantly such that demand equals or greater than supply to keep the present status quo, or just ride it out over the next two years with hidden discount here and there without officially doing a price cut. A price cut would reflect poorly on the brand, which everybody could see it coming when they incessantly raised prices over the last 2 years.

Wondering where are those people who said that brands should raised prices to grey market prices and capture the profits of the grey market….

[VogelPhoenix]

Originally Posted by HMHM

Wondering where are those people who said that brands should raised prices to grey market prices and capture the profits of the grey market….

I think that misguided idea was more prevalent on the main Rolex forum than here - never understood how one could misread the actual dynamics of the 2020-2022 watch market that badly.

[Octagon Guy]

Originally Posted by Gandor

Last year we saw price cuts in the PM 11.59 chronographs

Originally Posted by Gandor

AP literally did a price cut last year on the 11.59 chronographs.

Originally Posted by Commandopat

Crazy to see them talking about 30% discounts lol.

Anyone recall the percentage drop last year? Hopefully it was not as drastic as the 17% to 30% downward adjustment in 2013. Frankly, even a 10% reduction in msrp from brands itself should not be happening. It simply destroys the confidence of collectors. Holding firm without increasing prices till the economy ride out should be the way to go.

[psm11]

Originally Posted by Octagon Guy

Anyone recall the percentage drop last year? Hopefully it was not as drastic as the 17% to 30% downward adjustment in 2013. Frankly, even a 10% reduction in msrp from brands itself should not be happening. It simply destroys the confidence of collectors. Holding firm without increasing prices till the economy ride out should be the way to go.

Who is to say the ride out will result in a price rebound. For all we know a year from now secondary prices could be even further (on the decline) from MSRP. Wouldn’t they have to do something? Otherwise they start to look like hublot


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[In-N-Out]

Originally Posted by HMHM

I think price cut would be a terrible mistake. Either they cut production so significantly such that demand equals or greater than supply to keep the present status quo, or just ride it out over the next two years with hidden discount here and there without officially doing a price cut. A price cut would reflect poorly on the brand, which everybody could see it coming when they incessantly raised prices over the last 2 years.

Wondering where are those people who said that brands should raised prices to grey market prices and capture the profits of the grey market….

yea I think a price cut would be a complete disaster. they should hold prices and keep production steady.

still enough demand to sell every single watch produced.

yea, might still need to push non-ro watches on some clients, and those watches may hit the grey markets and thus bring headwinds and downward pricing pressure on codes/ROO/ladies pieces....but how is that different than patek? only the nautilus / aquanaut have historically been above retail and Calatrava and most other lines have traded below retail.

[dchang81]

A lot of people on here said the price cut from many of the brands 10 years ago would spell disaster but people kept buying.

[VogelPhoenix]

Originally Posted by dchang81

A lot of people on here said the price cut from many of the brands 10 years ago would spell disaster but people kept buying.

Yeah, just like last year's 12% cut for the Code chronos was just a blip (basically just undoing the last couple of prior price increases). Most people don't pay attention, and most of those who do have short memories.

[VogelPhoenix]

Originally Posted by psm11

Who is to say the ride out will result in a price rebound. For all we know a year from now secondary prices could be even further (on the decline) from MSRP. Wouldn’t they have to do something? Otherwise they start to look like hublot

If that's the criterion, everyone (AP, PP, Rolex, VC) was Hublot up until a few years ago.

[Octagon Guy]

Originally Posted by psm11

Who is to say the ride out will result in a price rebound. For all we know a year from now secondary prices could be even further (on the decline) from MSRP. Wouldn’t they have to do something? Otherwise they start to look like hublot


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I don't remembering mentioning prices will rebound after the economy slowdown. I also did state that whatever happens to the grey market is beyond AP's control. I only did mention explicitly that AP should maintain their msrp instead of a reduction, assuming slowing economy is one of their consideration among other factors.

[Octagon Guy]

Originally Posted by VogelPhoenix

Yeah, just like last year's 12% cut for the Code chronos

So it was 12%, unlike the 17% to 30% in 2013. But nevertheless, it's still a sour pill to swallow for those who bought it before the reduction. And was the reduction limited to CODE chronos only? Or across the whole Code series?

[messikens]

I don't see it happening but it will be interesting to see how this plays out.
I think the price increases over the last two years (frequency and amount) have been right at the limit of what the market was prepared to bear - so now I think the pendulum has sharply swung the other way...

[wiswrist]

AP reduced the price on the 26420RO at some point in 2023 as well. A friend of mine paid $63,700 in Dec 2022 at a boutique. It's now $60,300 (5.3% decrease).

Not sure what other references might have had minor corrections as well.