Just a Thought - Rolex Price Increase

[Oxfordian]

As has been well reported on a number of threads Rolex is increasing its prices from the start of 2020.

The point that I am going to make is that the increase may be implemented prior to the 1st January 2020. Why?

An AD's trading week is unlikely to start on a Wednesday (1st January), it is more likely to start on a Monday, it is also unlikely that the AD's computer system will be able to cope with a mid-week price increase as that would apply any increase to all goods sold in that week.

So my guess is that the new Rolex prices will be applied from Monday 30th December, the start of the trading week for many AD's.

Thoughts?

[Andad]

I, I, I’m too excited about this issue to think straight.......

[2nastie]

Question is why does it matter? If it happens, it happens where and when Rolex tells ADs it will.

We are entering a new decade with technology at it’s finest. Rolex isn’t faxing or snail mailing it’s new price list to its ADs, nor is the AD manually changing prices. If there is an extra dollar to charge the AD will change it the second they are allowed to.

Slow day after the Xmas holidays?

[Binky1]

I’m going back to work 2nd Jan if that helps.

[TswaneNguni]

Originally Posted by directioneng

I, I, I’m too excited about this issue to think straight.......

[Oxfordian]

Originally Posted by 2nastie

Question is why does it matter? If it happens, it happens where and when Rolex tells ADs it will.

We are entering a new decade with technology at it’s finest. Rolex isn’t faxing or snail mailing it’s new price list to its ADs, nor is the AD manually changing prices. If there is an extra dollar to charge the AD will change it the second they are allowed to.

Slow day after the Xmas holidays?

Definitely not slow days at my local AD, at least 3 people bought a Rolex whilst I was in the store yesterday, the SA stated that they had been very busy since Christmas.

Maybe getting their watches bought before prices increase.

[georgekart]

I don't see why they couldn't change the prices on 1st. Most computer systems would be able to change the price at end of month/year. For example if VAT rate changes in the new year due to a new law, prices change on 1st of January. So it would be logical for software to be able to do that. If it can change prices for that reason, why not because of a normal price raise?

[SydR]

SA in the local AD yesterday told me that they got unusually long notice of the price increase and suspects it’s to give ADs time to implement the change over the holiday period. There was no mention of them increasing prices early and January was always the word used.

[Oxfordian]

Originally Posted by georgekart

I don't see why they couldn't change the prices on 1st. Most computer systems would be able to change the price at end of month/year. For example if VAT rate changes in the new year due to a new law, prices change on 1st of January. So it would be logical for software to be able to do that. If it can change prices for that reason, why not because of a normal price raise?

Sales / Income / Profit / Tax etc., all gets billed by week not by day, if I am correct the UK tax year is by week not by day, this is why there are occasional 53 week tax years to cater for odd days, the tax year is always started at the beginning of a week never a mid-week, in the same way it finishes at the end of a week not mid-week.

Based on this my guess is that Companies will find it difficult to apply and record a price increase mid-week hence a rise from Monday 30th.

[Harry-57]

My VAT returns go by the month. It doesn't make any difference what day of the week a new month begins on. If the VAT rate went up on January 1st, it would change at a second past midnight. Simple as that. Businesses would charge the new rate immediately. If they didn't do this, they would still have to pay the new rate to HMRC.

My sales/income/profit tax is calculated yearly. Again, it doesn't make any difference on which day of the week the last day of the financial year occurs.

Maybe it's different in retail?

[georgekart]

Originally Posted by Harry-57

My VAT returns go by the month. It doesn't make any difference what day of the week a new month begins on. If the VAT rate went up on January 1st, it would change at a second past midnight. Simple as that. Businesses would charge the new rate immediately. If they didn't do this, they would still have to pay the new rate to HMRC.

My sales/income/profit tax is calculated yearly. Again, it doesn't make any difference on which day of the week the last day of the financial year occurs.

Maybe it's different in retail?

Basically this is what I was talking about, Oxfordian. If there are legal reasons that could make the prices change when the new month or year begins, it could be applied to the price raise of things come next year. I don't know how limited functionality of the software is, but frankly I don't think Rolex cares. If they said the MSRP goes up 1st of January, that's when it goes up. Not 2 days earlier or 5 days later when it's more convenient for you. Maybe they could out new price as list price and make a year end discount to go down to old price

[-Ally-]

Thoughts ?

You will not be charged new prices before the 1st.

Don’t go losing sleep over all this.

[stash21]

Originally Posted by Oxfordian

Sales / Income / Profit / Tax etc., all gets billed by week not by day, if I am correct the UK tax year is by week not by day, this is why there are occasional 53 week tax years to cater for odd days, the tax year is always started at the beginning of a week never a mid-week, in the same way it finishes at the end of a week not mid-week.

Based on this my guess is that Companies will find it difficult to apply and record a price increase mid-week hence a rise from Monday 30th.

UK tax year is by day - it always starts on the 6th April, irrespective of day of the week, so is always the same length aside from leap years.

[AJMarcus]

[enjoythemusic]

Doesn't matter really to me, love mechanical watches and the price is what it is.

Those who focus on price alone do not seem to understand value imho. Perhaps a different hobby is better for those price people?

Have you considered taking up underwater basket weaving?

[Oxfordian]

Originally Posted by enjoythemusic

Have you considered taking up underwater basket weaving?

I gave this up when I got interested in watches, it seemed a logical progression

[Cabaiguan]

Sometimes I wonder about this place.

[Oxfordian]

Originally Posted by Cabaiguan

Sometimes I wonder about this place.

So do I, I thought that my post might have been of interest, clearly not.

Wish I hadn't bothered

[Tridor]

It's really not relevant to me as I have no intention of purchasing a new Rolex any time soon. It's bad enough that AD's can't get or won't release supply to sell at MSRP, so we have grey dealers selling at well-above MSRP in an effort to exploit heavily the supply and demand angle ... granted, they're entitled to do so, particularly when there is a fairly large universe of willing customers who don't seem to mind the price exploitation in order to overcome the claimed shortage of product. I'm happy to have my 3 Rolexes, and will concern myself only when the time comes for servicing. Until this Rolex price "bubble" bursts, if at all, I'm holding steady with my small, but satisfying, 3 Rolex collection.

[Jona]

My AD used to tell me that it would take them a few days to get all the prices changed as per the announcement from Rolex. I posit that now it won't take as long since they have only a small % of the stock they did at the last increase.

[fskywalker]

Originally Posted by Tridor

It's really not relevant to me as I have no intention of purchasing a new Rolex any time soon. It's bad enough that AD's can't get or won't release supply to sell at MSRP, so we have grey dealers selling at well-above MSRP in an effort to exploit heavily the supply and demand angle ... granted, they're entitled to do so, particularly when there is a fairly large universe of willing customers who don't seem to mind the price exploitation in order to overcome the claimed shortage of product. I'm happy to have my 3 Rolexes, and will concern myself only when the time comes for servicing. Until this Rolex price "bubble" bursts, if at all, I'm holding steady with my small, but satisfying, 3 Rolex collection.

This!!


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[Jmbarrack]

Is this like Y2K for ADs?


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[DocHorton]

Originally Posted by Oxfordian

Sales / Income / Profit / Tax etc., all gets billed by week not by day, if I am correct the UK tax year is by week not by day, this is why there are occasional 53 week tax years to cater for odd days, the tax year is always started at the beginning of a week never a mid-week, in the same way it finishes at the end of a week not mid-week.

Based on this my guess is that Companies will find it difficult to apply and record a price increase mid-week hence a rise from Monday 30th.

I have never heard of any business performing accounting in the manner you just stated, at least in the U.S. Day of the week has nothing to do with it. It's always by month, quarter, and year.

[bezler]

Originally Posted by Oxfordian

So do I, I thought that my post might have been of interest, clearly not.

Wish I hadn't bothered

It's interesting, but from a US perspective, it's all very strange. You've got four UK sellers and a Netherlands guy all taking different positions; all we can really do is sit back, listen and learn.

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[Binky1]

Originally Posted by bezler

It's interesting, but from a US perspective, it's all very strange. You've got four UK sellers and a Netherlands guy all taking different positions; all we can really do is sit back, listen and learn.

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Trust me...this really isn’t interesting and relevant to TRF unless you’re an accountant.