Price increase this fall - yes or no?

[llamaofdoom]

The Fed reduced the fed funds rate today by 50 basis points.

As a result, the dollar continues its tailspin.

My guess is that the falling dollar will require more price increases on European goods to maintain profit margins for the European companies.

My guess is that the means more Rolex price increases, with higher and potentially more frequent increases necessary as the dollar goes down. Example: Panerai with two increases in 2007 - one in April, one in September.

Thoughts?

[puffnmo]

Not sure that a price increase is tied to currency fluctuations. Rolex charges what they think the market will bear, and SO FAR they have been right.

As for me, the next increase will put them beyond my comfort level, so I'll be out of the market. Same with Panerai.

Since I already have 7 Rollies and 4 Panerai in my collection, that won't bother me.

If I add another watch or two to my box, it would most likely be something different, unusual and better priced. My new U Boat is a good example. Cheers, Larry.

[Gaijin]

I agree. One more price hike...two at the most and I am done. It will become too much for me to stand to pay.

[Tombstone]

I am with KansaiVet, I don't know what I will do when a SD, or Sub hits $6,700 or higher.
I hope that if Rolex changes the SD with a maxi dial, or a new red SD I hope it will be soon while I can buy a Rolex and not feel like a fool or a sucker for paying too much.

[DC watchman]

I am barely at the table right now; and that is with a 10-15% discount which is really difficult to find from an AD in my neck of the woods.

Any addtional increase would drive me to strictly used or gray market.

[ohsixx]

One of the things that makes Rolex so exclusive is the price. Bottom line is most people cannot afford a Rolex Watch and that is one reason we own them.

[Green Arrow]

Originally Posted by ohsixx

One of the things that makes Rolex so exclusive is the price. Bottom line is most people cannot afford a Rolex Watch and that is one reason we own them.

Yes, only 800,000 or so get sold each year, with Rolex representing 1/2 of all the COSC certs each year. Quite exclusive.

[TDH]

Originally Posted by DC watchman

Any additional increase would drive me to strictly used or gray market.

Makes sense!

[unknown]

a weak $ would justify another increase.

besides, who cares.

If your dreaming about a new sub and listprice goes from 5700 to 6100 ...
I can't imagine 400 usd would be a problem for somebody who will buy a 5700 usd watch, right ??

[astcell]

$5k for a SS is sad when a TT is $7k. I will likely buy TT from now on, or SG.

[Jimbits76]

When I bought my LV at the weekend, my AD told us that Rolex UK will be increasing all sport models by 15% minimum in October 07.
No discounts on Sports either (including SD) as they are getting increasingly difficult to get hold of due to demand in US.

[roadcarver]

Perhaps pre-loved will the way to go once the new AD price has become unreasonable.

[llamaofdoom]

That would mean a 15-20% increase in the US to keep prices comparable. That would be awful.

I'm with y'all - I've been buying and selling used Rolexes for years, and I don't mind dropping $5K-10K on a nice, clean watch...or buying new ones if I get the right deal. But the price increases are killing me.

The Patek Jumbo Aquanaut looks more affordable all the time...

[Welshwatchman]

Rolex watches are already way overpriced IMO.

If it were not for my specialist non-AD dealer's 20-35% discount I would not consider the brand, NIB (bar SS Daytyona/Milgauss).

[Blown Wide Open]

There are three absolutes in the United states:

1) You will pay taxes

2) You will die

3) Rolex will raise prices

That is all.

PAtrick

[BiG JeEzY]

Originally Posted by Blown Wide Open

There are three absolutes in the United states:

1) You will pay taxes

2) You will die

3) Rolex will raise prices

That is all.

PAtrick

Yup, I know that is a given.