AP price increase 2014

[lipjin]

I just heard it from an AD in HK too. Hmmm

[mb23]

Originally Posted by conkers

Who on earth is in charge of pricing at AP these days? Is it just me or is it a shambles? Reductions this year, increases 11 months later.

I agree, it's all over the place. But, I think the increase is just a increase for the dollar fluctuation as it's minimal across the range $200-$400 tops.

The costs is the big kicker here with steel and carbons now matching the same cost as precious metals.

[conkers]

I hear you Mike but in Asia it looks like the increases are a lot bigger. As HK is pegged to the USD then something is out of sync!

[HKRolexFans]

I also confirmed with an AD in HK that there will be price increase for certain models in 2014 and is waiting him to send me the new price list

[SMD]

It will be interesting to see how this plays out over the next 12 months. In the short term I would expect to see BNIB pieces sold via non-AD channels to try and pass on the full cost increase. But, outside of a handful of pieces (certain LEs, 15202, etc.), APs were not exactly flying off the shelves, even at 25-30%+ discounts. So why they would move any faster now at an even higher price point? Demand is not inelastic and there are numerous substitutes available, especially the closer pricing gets to full retail. But, medium term, the same economic pressures that caused certain AD's to move product out the back door will still exist, only now inventory is likely turning even slower than before. Longer term, fewer points of sale, less discounting and firming pricing across the line. But without some adjusting of the retail prices (like they did with gold pieces in 2013) there will be a lot of nice alternatives available for the same amount of money.

So for me, unless there is a LE or boutique only piece of interest, I will be sitting on the sidelines to see where things shake out.

[Soly20]

This seems to be a lot of playing around with the AP pricing, 2013 year gold price decrease and now 2014 price increase. I wouldn't think its a great idea to keep playing around with the pricing of the same product!

[Roll the Lex]

Originally Posted by SMD

So for me, unless there is a LE or boutique only piece of interest, I will be sitting on the sidelines to see where things shake out.

Well the earliest I could buy an ap would be summer- that should give enough time for the ADs to see if sales will hold up. It would suck to try to negotiate when the increase is first initiated.


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[yachty 1]

I agree certain models like the all ceramic for example is already over 40,000. It was pretty much agreed upon that it was over priced and in the precious metal territory. With a price increase or lack of discount I dont see models selling..

[abnerc15]

Originally Posted by yachty 1

I agree certain models like the all ceramic for example is already over 40,000. It was pretty much agreed upon that it was over priced and in the precious metal territory. With a price increase or lack of discount I dont see models selling..

The all ceramic definitely seems to be overpriced in comparison with the steel and forged carbon options. And now they go and add another 2600 SGD to the retail price I can't imagine why someone would pay so much for this watch...

[diver2012]

So has anyone got the new price list now?

[codecow]

It's an odd choice, there seems to be high/semi-high availability of discounted gray market pieces but with this increase they're squeezing the ADs as well as the end-customer so they'll reduce discounting and keep revenues flat by increasing the price?

[Baco Noir]

According to one AD I talked too, they are also stepping up their efforts to find ADs who are discounting and pull their AD status.

[SMD]

Originally Posted by codecow

It's an odd choice, there seems to be high/semi-high availability of discounted gray market pieces but with this increase they're squeezing the ADs as well as the end-customer so they'll reduce discounting and keep revenues flat by increasing the price?

Not sure I understand why revenues would be flat? AP is getting more revenue by increasing the wholesale price to ADs (assuming the higher wholesale pricing is not offset by lower sales volumes in the long run due to less ability to discount). AP books the revenue when inventory gets sold to the ADs.

Strong ADs will survive, weaker ones (read the ones most likely to sell out the back door into the gray market) will fall away with the end result being fewer POS and less discounting and a smaller gray market. Or at least I suspect that is the goal.

[scimps]

Well not sure if its old news or not but wights watches on Isle of Wight uk has increased price of 15400st by £1000 to £9k which was £7995 when I last looked (and purchased)

So presumably he has to pay more for what he gets from usa even if the list price hasn't changed-

[rjarr]

My watch guy told me the cost of my roo panda steel went up 500 to 27,800 plus a 5% cost increase from AP.So total increase is about 1900 dollars less discount so should be around 1300 to 1500 increase total.

[daytona1984]

wow, that is really high... 5% would be reasonable imo...

[Darren Reay - Wights]

Originally Posted by scimps

Well not sure if its old news or not but wights watches on Isle of Wight uk has increased price of 15400st by £1000 to £9k which was £7995 when I last looked (and purchased)

So presumably he has to pay more for what he gets from usa even if the list price hasn't changed-

Hi Scimps,

This is Darren Reay from Wights Watches, we were selling the AP 41mm Time Only 15400ST models at £7995 since they came out, and I'm sure we were the cheapest in the EU for this model (EU grey dealers were queuing up to buy them at £7995 to sell on to their clients at a profit!!) but in December we were told that RRP/List prices were increasing (slightly!) but more importantly that AD margin was being cut by 10% (but then I heard a rumour it was between 5-10%), so what you will find now is that all grey dealers will have to increase prices as they are paying more for the watches. Our previous price of £7995 was fixed, however there is a small amount of movement available in the £8995 price as long as there is no trade in involved :-)

Thanks for the purchase!. Looks like you bought at the right time :-)