MSRP's Missing - Price Increases?

[GreenLantern]

Originally Posted by chiscott_29

I agree it’s exhausting but I do feel this is the new normal. AP, Rolex, Patek will remain a caustic combination of restricted supply, social media hype, and limited access. Can all 3 keep it up? I’m afraid it’s very possible they can, and will. At least with maintaining specific hot models.

There's an artificial shortage created by a production stoppage.

That's not a valid reason for a long term price increase this year.

Quite honestly, I'd have waited until next year to see how things shake out.

Of course, no one waits. Brands experience FOMO too, and that's what's happening here. Someone starts the price hikes, everyone follows suit.

[Kliminator]

Originally Posted by ganiccus

why would you even entertain the 15450 at this point when you can buy a 15500 for a mere thousand dollars more? pricing strategy litterally makes zero sense.

Preference in size ... Eg wrist size. You are assuming that everyone is good with the 41mm size vs 37mm

[sgwatchguy]

Originally Posted by ganiccus

why would you even entertain the 15450 at this point when you can buy a 15500 for a mere thousand dollars more? pricing strategy litterally makes zero sense.

The 51450 is a better fit? Not everyone can carry the 41mm 15500.

[sgwatchguy]

Originally Posted by chiscott_29

I agree it’s exhausting but I do feel this is the new normal. AP, Rolex, Patek will remain a caustic combination of restricted supply, social media hype, and limited access. Can all 3 keep it up? I’m afraid it’s very possible they can, and will. At least with maintaining specific hot models.

+1

If the pandemic couldn’t put a dent on the demand, nothing short of another GFC will (and pray/hope we don’t see one soon). The brands have gotten a new lesson in macro and microeconomics and I don’t see them shying away from testing the limits to what is optimum pricing.

[Xerxes77]

Originally Posted by chiscott_29

I agree it’s exhausting but I do feel this is the new normal. AP, Rolex, Patek will remain a caustic combination of restricted supply, social media hype, and limited access. Can all 3 keep it up? I’m afraid it’s very possible they can, and will. At least with maintaining specific hot models.

I agree with that......
Rolex and Patek start few years ago to play this game with untouchable SS sport model....
AP start this year after they closed many retailers and some countries remain with 0 AP retailers..... ex: Austria......
When they do this they start to control the market and start to play game like Rolex and Patek with shortage of a few models....
This market strategy help AP to sell Code 11:59......
Even if tomorrow this craziness with coronavirus stop...... My opinion are that we not see again AP who are before the crisis.....

[AEV]

Originally Posted by ganiccus

why would you even entertain the 15450 at this point when you can buy a 15500 for a mere thousand dollars more? pricing strategy litterally makes zero sense.

The 41mm feels a bit bigger, but I think I can still pull it off as I have tried the 41mm chrono.
What ''brakes'' it for me is that they removed the Automatic from the lower part of the dial. Small details but it just does not look astatically pleasing to me.

[AEV]

Originally Posted by Sulituan

2 price increases within 60 days?

Nope.
The first price increase was on Jan 1st.
Dec. price is the starting point since when I started tracking it.

[supernova]

Originally Posted by ganiccus

why would you even entertain the 15450 at this point when you can buy a 15500 for a mere thousand dollars more? pricing strategy litterally makes zero sense.

It has always been about $1k difference between the two since launch. Also, the amount of work creating both watches is exactly the same (well when they had same movements), the only difference was the amount of steel in both and raw steel isn't expensive.

Same with other brands such as Hermes, the price difference between the same bag in different sizes is small as same amount of craftsmanship goes into both, just end user preference for the different sizes.

[supernova]

I just don't get their pricing strategy throughout the regions,

15500ST

EUR - €22,000
HK - $163,000 = €18,000 EUR

represents a 22% difference which is a lot for the price points and even higher amounts for other models.

[GS93108]

Originally Posted by supernova

I just don't get their pricing strategy throughout the regions,

15500ST

EUR - €22,000
HK - $163,000 = €18,000 EUR

represents a 22% difference which is a lot for the price points and even higher amounts for other models.

In the UK the prices are inclusive of sales tax, in the US they are exclusive of tax. I think in Europe the prices are also inc tax, but in Hong Kong there either is no sales tax or its not included in the retail price, hence the difference.

I'd imagine that AP normalises their global prices as best they can.

[fsprow]

Originally Posted by chiscott_29

Everything is insane right now. It's a combination of short supply that has not recovered from the Covid shutdowns, heightened demand, excess money, and the continued ease at which the market is manipulated by dealer/flipping activity.

I tend to think things will stabilize soon, but I'm done playing prognosticator. If you would have told me back in April that 15450 blues are $35k and 15500 blues are nearing $40k, I would have fallen to the ground in laughter.

Not sure what "excess money" means, but I'd like to have more!!

For a number of reasons (social media, Asian recovery from the virus, stock markets, many businesses doing very well, pent up buying desire ... ), demand appears to have increased strongly for these watches. Who knows about the future, I like to live in the present and never call it insane - it is what it is.

[AK797]

Thing is AP are far less conservative than Rolex and PP, and even before maverick FHB they have reduced prices in the past and not cared about their angered clients, so they are free to raise prices in this climate and then reverse them if the situation changes.

[VogelPhoenix]

Originally Posted by GS93108

In the UK the prices are inclusive of sales tax, in the US they are exclusive of tax. I think in Europe the prices are also inc tax, but in Hong Kong there either is no sales tax or its not included in the retail price, hence the difference.

I'd imagine that AP normalises their global prices as best they can.

Yeah, no sales tax/VAT in HK; 19-22% VAT in most of Europe explains most of the difference.

[supernova]

Originally Posted by VogelPhoenix

Yeah, no sales tax/VAT in HK; 19-22% VAT in most of Europe explains most of the difference.

Yes that's correct. Although most brands generally try to normalize prices including sales taxes so it stops folks buying in cheaper regions and reselling in higher. I suppose AP and Rolex don't really have that problem since can't buy them anywhere! But for the less popular models, it be much cheaper to buy a plane ticket to HK to get say a Code (during normal times of course).

[porschejeff]

Originally Posted by dauster

not enough price increases lately - they really needed that one - what is this the 3rd price increase in less than 12 months?

I think I am out - moving on to collecting porsches seems cheaper.

Show that Porsche collection!

[bondtoys]

Originally Posted by supernova

Yes that's correct. Although most brands generally try to normalize prices including sales taxes so it stops folks buying in cheaper regions and reselling in higher. I suppose AP and Rolex don't really have that problem since can't buy them anywhere! But for the less popular models, it be much cheaper to buy a plane ticket to HK to get say a Code (during normal times of course).

That is not correct!
Brands usually adjust net prices because if you as a UK citizen are buying a watch in HK for example, you‘ll have to pay VAT when you bring the watch into the country.

[Stevie_Goodlife]

Originally Posted by AEV

Hi everyone, first post on the AP forum.

I know the prices of 15450 (as I am on a waiting list for it), give or take couple of hundred euros. It also depends which county in Europe will be selected (e.g. prices in Spain are higher than Germany)

Dec 2019: EUR 16.8k
Jan 2020: EUR 19.6k
July 2020: EUR 21.0k

If there is another 7%-8% increase that will mean approx. 33% increase compared to Dec 2019, which is quite a lot.

This stat definitely stands out. When I picked up my 15500 end of 2019, I recall seeing the 15450 at the boutique and it's list price.

As of now is still EUR 21k on the site, but a 25% increase is meaningful (Dec '19 - Jul '20)

[dauster]

Originally Posted by porschejeff

Show that Porsche collection!

lol I only have a macan GTS. I was obviously being funny but currently considering the 718 Spyder or a regular boxster (maybe GTS) but I feel like waiting until next year to see if I can close some more deals before.

[Tanuki]

Originally Posted by dauster

lol I only have a macan GTS. I was obviously being funny but currently considering the 718 Spyder or a regular boxster (maybe GTS) but I feel like waiting until next year to see if I can close some more deals before.

The Boxster Spyder is so special! It has supercar looks for non-supercar money.

[dauster]

Originally Posted by Tanuki

The Boxster Spyder is so special! It has supercar looks for non-supercar money.

Yes agreed so awesome... I think I will do it