Price increase bad for AD's?

[FlyingMoose]

I keep seeing people saying that the AD's are lucky with the price increase because they're able to sell watches they bought at a lower price for more. However, I think the opposite is true. An AD will want to maintain a specific amount of inventory, it's actually a cost of doing business (money tied up that can't be used for other things). Any watch that's sold will have to be replaced.

So, if there's a big rush to buy right before the increase, and then they end up having to replace the inventory after it, they're actually making a smaller profit margin. Granted their margin is still large enough to make a profit, but they're probably also hit by a slowdown at the same time (as a bunch of people just bought watches).

There may be some exceptions, such as a watch that didn't sell for a while, and that won't be replaced in inventory, or an AD that's going out of business soon and thus is "cashing out" by not replacing inventory. But, I think on the whole, the AD's don't really like it that much (the individual salespeople may be a different story).