Patek drops prices?! Could rolex be next?

[domrusso10]

So according to this post patek has dropped their prices. The article also hints that other watch makers may follow suit. Could rolex be next?

“Opinion: Patek Philippe Price Decrease” via @watchville
http://www.woundforlife.com/2015/02/...rice-decrease/


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[flw]

I'm looking out the window, and I don't see any pigs flying yet ... So no, I don't think Rolex is lowering prices. They may not go up, but I can't believe they would consider lowering them.

But it's interesting to see the big picture, in that PP is lowering prices in the US but raising them elsewhere.

[AS1]

PP was already charging a significant premium in the US market and this move has narrowed, although not eliminated, that gap. The same certainly cannot be said of Rolex. Best case scenario is Rolex do not increase in the US for a little while as a result of the relative strength of the dollar compared to the relative weakness of the Euro, the effects of which our friends in Europe have recently seen!

[pol3259]

According to two ADs that I've spoken with, Rolex has already advised them that in Canada, there will be a price increase effective March 15, but they don't know the margins yet.

[Vincent65]

No.

[jjnd08]

As someone considering selling his Daytona...I hope not!

[locutus49]

Yes. Rolex is dropping its prices by 15% effective immediately

[RLROCK]

Since the U.S. Dollar is seeing an overall strengthening globally, we might not see an immediate price increase by Rolex. It all hinges on global demand for Rolex watches. If the Asian and European markets show a decrease in demand, then I suspect that there will not be an increase here in the U.S. Also, let's not discount the fact that gold has come down in recent months. A stronger Swiss Franc makes gold even cheaper for Rolex now.


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[Mystro]

I hope prices drop. Quality control has not gotten any better so I am not sure how or why Rolex has been raising their prices steadily for the last few years??? If Coke did this a can of soda would be $15 by now.

[GB-man]

Originally Posted by Mystro

I hope prices drop. Quality control has not gotten any better so I am not sure how or why Rolex has been raising their prices steadily for the last few years??? If Coke did this a can of soda would be $15 by now.

A bit hyperbolic no?

[willang]

Oh man... I thought I did good in 2011 when I bought my PP just before they increased it.

With this across the board 7% decrease, the sticker price is actually less than when I bought new in 2011.

[Casey VP-26]

Very Interesting, Thanks for the link.

[HL65]

Originally Posted by AS1

PP was already charging a significant premium in the US market and this move has narrowed, although not eliminated, that gap. The same certainly cannot be said of Rolex. Best case scenario is Rolex do not increase in the US for a little while as a result of the relative strength of the dollar compared to the relative weakness of the Euro, the effects of which our friends in Europe have recently seen!

Correct...Even with 7% decrease we still pay 10%-13% premium here in US for same watch. Europe should have had a 15% increase but clearly that would have killed sales there so it was only 7% increase. Do I think Rolex will do same here? No I don't see that happening. I do see Europe getting hit with decent price hike though. It is now February and still waiting for that Feb 1 increase though.

[AMCK87]

From reading the thoughtful discussion about the PP price decrease in the PP subforum, I think it was predicated on the fact that the US prices were at a premium, and US buyers would often source PP's from abroad via grey dealers. The price changes were meant to even out the pricing globally in order to squeeze margins for grey dealers, and to push American consumers to purchase directly from local ADs.

I don't think Rolex has that problem, at least in the US. As has been mentioned in other threads, Rolex USA had its best ever year last year. There is no shortage of demand for pieces from ADs and given the strict Customs rules, it's harder for grey dealers to bring Rolex watches to the US from abroad (although it surely happens). Rolex also has a much bigger business in terms of sheer volume of watches sold and therefore I'd assume is more capable of weathering volatility in the F/X markets. I suspect Rolex would keep prices the same, or increase them here if anything to recoup some of the value that the USD lost and also because, quite frankly, they've continued to increase prices in the past and people have been buying more than ever.

Just my

[watchwatcher]

Interesting...thanks.

[Eric Chan]

Originally Posted by pol3259

According to two ADs that I've spoken with, Rolex has already advised them that in Canada, there will be a price increase effective March 15, but they don't know the margins yet.

Heard the same thing here. I will believe it when I see it, but the way things have been going, I would tend to believe this one.

[HL65]

Originally Posted by pol3259

According to two ADs that I've spoken with, Rolex has already advised them that in Canada, there will be a price increase effective March 15, but they don't know the margins yet.

Originally Posted by Eric Chan

Heard the same thing here. I will believe it when I see it, but the way things have been going, I would tend to believe this one.

Sorry but Rolex does not work that way and AD's aren't advised of price increases. They find out when they get mailed new price books and that takes time to do given their network. Anyone who tells you differently simply doesn't know.

[Solo118]

Price drop? No, I do not think so.
However they make it like they are doing us a favor by keeping MSRPs as is and giving the ADs less margin.

[psholtz]

Originally Posted by domrusso10

So according to this post patek has dropped their prices. The article also hints that other watch makers may follow suit. Could rolex be next?

“Opinion: Patek Philippe Price Decrease” via @watchville
http://www.woundforlife.com/2015/02/...rice-decrease/


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The U.S. economy may be starting to move into its long-anticipated deflation, sort of like Japan did 20 years ago.

[FTX I]

Originally Posted by HL65

Sorry but Rolex does not work that way and AD's aren't advised of price increases. They find out when they get mailed new price books and that takes time to do given their network. Anyone who tells you differently simply doesn't know.

It's amazing the number of times you have to repeat that and people don't listen.

[bayerische]

Highly doubt it, and remember Patek is rising it's prices 7% in the EU. Yeah baby!

[dabbotjordan]

At the end of the day,if you can afford to buy a Rolex or PP an increase isn't gonna bother you.
Deal with it and move on.

[HL65]

Originally Posted by FTX I

It's amazing the number of times you have to repeat that and people don't listen.

My head hurts sometimes my friend.

[SMD]

Originally Posted by Mystro

I hope prices drop. Quality control has not gotten any better so I am not sure how or why Rolex has been raising their prices steadily for the last few years??? If Coke did this a can of soda would be $15 by now.

What price increases are you talking about? In the US, there has not been an increase for several years.

[Mick P]

Chaps

You cannot ask if a foreign supplier is going to put up or lower its price because different countries have different exchange rates to the Swiss Franc.

You in America on a roll at the moment in the sense that the Dollar is gaining against most currencies, as indeed is the Pound, but that could change tomorrow.

The complexity with the Swiss Franc is that it pulled away from alignment with the Euro in mid January and rocketed in value. However, the Franc has steadily and continuously weakened ever since and is not far from its original value.

Therefore it would be a brave Rolex to change prices in the next few weeks.

Finally you must remember that this is an international forum with many people from many countries with many currencies.

Regards

Mick

[stockae92]

As Rolex raise their prices, its a good time to sell your Rolex for a PP :)

[ARTISAN]

pp lowering prices,,,,,tag and cartier laying off staff,,,,,,,,,,,,,,it will be interesting at basel show,,,,,,,,,,,,

[psv]

Rolex will not lower their prices in the US. It has never happened and will never happen.

[K3vin]

I feel like nothing will happen. The price between Rolex and (arguably the next segment) Patek is way too much. I think the gap needs to close and that is going to come more from the top end than the bottom.

[HL65]

Originally Posted by K3vin

I feel like nothing will happen. The price between Rolex and (arguably the next segment) Patek is way too much. I think the gap needs to close and that is going to come more from the top end than the bottom.

Couldn't disagree more not even comparable...Sorry. Someone looking to buy a Sub or DJ isn't shopping against $50-70-100K watches. So should Rolex lower prices and close gap with Omega or Breitling or other brands?

People shopping Patek usually look at AP, Lange, VC, FPJ etc. Perhaps Rolex at some level ie Aqunaut or 5711 but not for most part.