Rolex will increase 8% in the USA on May 10, 2011

[psv]

No analogy needed really and while your position is well argued and logic you are missing the point that

a) Rolex sport watch prices aren't really nearing AP, VC or PP all that fast because those brands have price increases as well.

b) All prices go up. All the time. It is called inflation. Sure, Rolex have raised their prices as hard as possible, and will continue to do so, but to take your car analogy if I must: it used to be that you could buy a new car at a dealer around $15-17K well equipped. Those days are long gone, you are now easily paying mid-20'ies for something decent. There used to be entry level 3-series BMW's for under $30K...

c) Increasingly Rolex get more revenue from the Asian markets. Given the prices and lack of availability of popular models in e.g. China, such tourists walk in daily to stores here in DC Metro Area and gladly pay list for just about any model. Same things goes for Patek and AP. They mostly go to tourists (also making it harder for us locals to get decent discounts because the sales manager knows it will sell to a tourist within a foreseeable future).

d) Have you noticed Omega doing the same thing? They've cut way down on ADs, where you easily could walk in and get regular ss Omega for 30% off MSRP before, now it is a lot harder and they are going for their own stores and high-end retail locations. They are trying to increase the use of in-house and they are raising prices left and right.

Net/net: I'm not really defending Rolex price increases, nor do I really like them. Just trying to provide some perspective as to why they are happening and why it will continue. Sure, some potential customers will be turned-off but the grand perspective it is an essential strategy for a luxury brand.

[jameson]

Originally Posted by steubi1

I agree Chris, too, but....will the Dollar ever go up again?

I don't think so, at least it has gone south for the last 40 years, almost a straight line...

But I agree 100%, once the prices are up, they won't be lower in the future!

Greetings
Tom

Doubt it will. Dollar has been downhill ever since the Nixon shock, and will likely continue to fall unless it is put back on the gold standard. Convertibility is the problem, as M-0 money supply is so far greater than all the gold ever removed from the earth, that a "basket" of commodities is the only real option.

When (yes WHEN) Greek debt gets restructured the dollar will temporarily spike in a flight to safety, but its just a dead cat bounce. Basically, 2008 all over again.

[NEW]

FOOD PRICES ARE RISING, DOES THAT MEAN STOP BUYING FOOD.

HISTORY REPEATS ITS SELF.

[Zed Homme]

Originally Posted by steubi1

I agree Chris, too, but....will the Dollar ever go up again?

I don't think so, at least it has gone south for the last 40 years, almost a straight line...

But I agree 100%, once the prices are up, they won't be lower in the future!

Greetings
Tom

The dollar won't get stronger, but it will recover as far as the exchange rates with other currencies are concerned.

Beyond that, the car analogy to inflation is a terrible one. As someone else said, a good car was bought for $19k a decade ago, well that is still the case today only difference is instead of a Honda, it's a Hyundai. Mercedes has lowered their prices and the BMW 5 series I bought in January is identical to the one I bought in 2006 yet it was $4k cheaper (I custom ordered both cars and paid full msrp for both). Coupled with stricter emissions and safety standards, it is easy to say that the price of cars has actually come down in the past 15 years.

[tictocChuck]

Sinking US dollar can be only reason for the increase. Man, Rolex sure doesn't pull punches when it comes to price increases...no mercy at all. I was hoping to get the new Explorer II, but now I think not.
Good luck to those looking to lock in before May 10th price increase....make this weekend a Rolex weekend.
Cheers

[Zed Homme]

Originally Posted by tictocChuck

Sinking US dollar can be only reason for the increase. Man, Rolex sure doesn't pull punches when it comes to price increases...no mercy at all. I was hoping to get the new Explorer II, but now I think not.
Good luck to those looking to lock in before May 10th price increase....make this weekend a Rolex weekend.
Cheers

It is not the only reason...rolex is raising prices in other markets where local currencies are very strong as well. They are exploring the boundaries on the demand for their products.

[h999r]

thanks for the info

[rr-nyc]

Originally Posted by Zed Homme

It is not the only reason...rolex is raising prices in other markets where local currencies are very strong as well. They are exploring the boundaries on the demand for their products.

The inherent cost of doing business is on the rise. Costs of raw goods, carrying costs and, as stated earlier, currency fluctuations

[Runnin' Rebel]

My AD just told me 8% on Tuesday

[ingoodtime]

I cringe now when I see a " look what I got thread" as every purchase sends a message to Rolex. Only when sales plummet in a market will they get the message. Of douse, that doesn't mean they will care or react at all. Particularly if other markets provide them with the profit they desire. That said, the USA consumer purchases add greatly to other countries economies. When we sink, they will feel the pain also and their growing middle class will shrink thus slowing sales of everything. Maybe Rolex wants to bank the profits before the collapse that seems inevitable. The increase won't affect me because I just can't spend that much money on a watch anymore. Let me rephrase my cringe statement. I am really happy for those that can enjoy the purchase of a Rolex because I remember my excitement on joining the Rolex owners club.

[train-time]

Just received a call from a local AD; they have received the new price list effective the 10th of May

[casadecamporolex]

Just like with rising commodity prices, Rolex pricing is affected by material costs.
However, Rolex has another rationalization for it's increases.
Anyone care to estimate the number of Rolex watches sold in China?
As an enormous emerging market for name brand luxury goods, China consumes Rolex watches with an insatiable appetite.
As long as both the US dollar fades and the Chinese market expands, we in the US will pay higher and higher prices.
Can hardly wait to see the new pricing on my Grail watch, w/g YMII.

[B. Doggy]

Glad I bought my Daytona when I did...but what about about the new Explorer and DJII I want...