Want supply to improve? Hope for a price increase in January.

[Rollieo]

History of price increases: https://www.minus4plus6.com/PriceEvolution.php

Rolex increased pretty significantly in January 2022 and January 2023.

We all see supply improving right now. It’ll further be the case if Rolex increases prices in January.

It will be interesting if Rolex doesn’t raises prices, it means with the current supply/demand situation, they would preferred to keep it this way.

[0nly5iv3Digits]

Watches aren’t really moving as far as I can tell. The demand isn’t there. ADs are still playing games and holding watches in the back imo. They would be silly to continue these games with a price-raise. I would be inclined to think “waitlists” will be a LOT shorter than they’ve been in recent years, commensurate with what we’ve seen already in recent months. People are getting pieces, often within just a few months of waiting - some with no buying history. And hot pieces too! If price goes up, I think ADs may actually begin to take deposits to allocate.

Let’s see.

[Gaussian]

Originally Posted by Rollieo

History of price increases: https://www.minus4plus6.com/PriceEvolution.php

Rolex increased pretty significantly in January 2022 and January 2023.

We all see supply improving right now. It’ll further be the case if Rolex increases prices in January.

It will be interesting if Rolex doesn’t raises prices, it means with the current supply/demand situation, they would preferred to keep it this way.

I’d suspect that the extra hundreds that are typically added to the msrp each year is not contributing into less demand/more supply in any meaningful way.

My hunch is that it has more to do with people that are tired of dealing with multi-month/year long fruitless ring-kissing in the hopes of getting the call.

Many of these people have either turned to the grey market, aren’t buying anything or have bought another brand of watch.

[macrowatch]

Price increases in luxury segment continues to be eye popping. From Channel to Longchamp to Brunello Cucunelli, etc, etc.

[BillA]

You are not seeing an increase in supply, you are seeing a decrease in demand.

[JSCP]

Originally Posted by 0nly5iv3Digits

Watches aren’t really moving as far as I can tell. The demand isn’t there. ADs are still playing games and holding watches in the back imo. They would be silly to continue these games with a price-raise. I would be inclined to think “waitlists” will be a LOT shorter than they’ve been in recent years, commensurate with what we’ve seen already in recent months. People are getting pieces, often within just a few months of waiting - some with no buying history. And hot pieces too! If price goes up, I think ADs may actually begin to take deposits to allocate.

Let’s see.

Not true, plenty of demand. I get offered what I ask for, but could be in a month or 6, and I am a VIP.

So good luck to all. Not easy. Just buy grey if you cannot get allocation?

[Marcjvr]

Supply is already improving

[Michael1968]

Originally Posted by BillA

You are not seeing an increase in supply, you are seeing a decrease in demand.

This +1

[APPRF]

We are seeing increase in supply and demand from ADs, and decrease in demand and supply from Grey. Situation for higher demand references is still going to be hard because more shift in demand from grey to ADs.

[stevestil]

Have not seen any significant improvement as far as supply goes for anything other than PM pieces which are difficult to move unless it’s trading at a premium on the secondary.

As far as SS sports models go- situation is the same as it was a year ago with the same AD games. Even with a price increase- 95% of people offered these watches are not saying no to them.


Sent from my iPhone using Tapatalk

[SMDRFE]

Originally Posted by macrowatch

Price increases in luxury segment continues to be eye popping. From Channel to Longchamp to Brunello Cucunelli, etc, etc.

My wife cannot believe the increase in prices on Chanel bags and accessories. Truly mind blowing.

[Calatrava r]

Originally Posted by macrowatch

Price increases in luxury segment continues to be eye popping. From Channel to Longchamp to Brunello Cucunelli, etc, etc.

This entirely. Prices increases in luxury goods have nothing to do with anything but elevating the status of the brand. There are already huge profits baked in at current levels. When comparing the cost of a Sub in 1970 factoring the historical rates of inflation, the current price far exceeds that inflation adjusted number.

[OTX]

Originally Posted by Calatrava r

This entirely. Prices increases in luxury goods have nothing to do with anything but elevating the status of the brand. There are already huge profits baked in at current levels. When comparing the cost of a Sub in 1970 factoring the historical rates of inflation, the current price far exceeds that inflation adjusted number.

Right on!. Rolex is already seen as the top watch brand by watch and non watch people and Rolex will play on that and keep increasing their prices a lot faster than they used to imo.

[Rollieo]

Originally Posted by BillA

You are not seeing an increase in supply, you are seeing a decrease in demand.

Is demand from flippers and grey market real demand though? Seems more like artificial demand, as they want to resell.


I say improving supply when you can more easily get the watch you want from your AD. Agreed there isn’t increased supply from the factory.

[zengineer]

Rolex will only increase prices if they believe they can maintain them in the long run. Nothing hurts the status of a luxury brand more than having to discount or drop prices.

I really believe this is their primary consideration. They aren't short-term thinkers.

[soldes]

Originally Posted by zengineer

Rolex will only increase prices if they believe they can maintain them in the long run. Nothing hurts the status of a luxury brand more than having to discount or drop prices.

I really believe this is their primary consideration. They aren't short-term thinkers.

Along those lines, Business 101 says, that as long as people are lining up to buy what you are producing; to get their hands on a Rolex, your clientele will happily pay more for it.
Additionally, remember that this company is not catering to us in the US nor Europe; all these changes and strategies are geared to their present target: The ASIA/CHINESSE market.
IMHO, assume a price increase, shortly after the Ball drops in Time square.

[blada4life]

Originally Posted by Rollieo

History of price increases: https://www.minus4plus6.com/PriceEvolution.php

Rolex increased pretty significantly in January 2022 and January 2023.

We all see supply improving right now. It’ll further be the case if Rolex increases prices in January.

It will be interesting if Rolex doesn’t raises prices, it means with the current supply/demand situation, they would preferred to keep it this way.

i dont think this was worldwide was it? pretty sure at least one of these was europe only

[Ceriano]

Originally Posted by Rollieo

History of price increases: https://www.minus4plus6.com/PriceEvolution.php

Rolex increased pretty significantly in January 2022 and January 2023.

We all see supply improving right now. It’ll further be the case if Rolex increases prices in January.

It will be interesting if Rolex doesn’t raises prices, it means with the current supply/demand situation, they would preferred to keep it this way.

Looks like average increase is about 1% to 2%. That sounds pretty reasonable I don’t think anybody would even notice that.

[amh]

Rolex can easily tolerate a price increase with no effect on demand.

The hype has diminished but it's far from over. Track your favorite reference on watchcharts to see for yourself.

Example, BLNR still selling at 1.5x MSRP
https://watchcharts.com/watch_model/...0blnr/overview

Datejusts are at MSRP but people will still buy them even with a price bump. They're a bread-n-butter Rolex and seemingly immune to hype.

[Rollieo]

Originally Posted by soldes

Along those lines, Business 101 says, that as long as people are lining up to buy what you are producing; to get their hands on a Rolex, your clientele will happily pay more for it.
Additionally, remember that this company is not catering to us in the US nor Europe; all these changes and strategies are geared to their present target: The ASIA/CHINESSE market.
IMHO, assume a price increase, shortly after the Ball drops in Time square.

Originally Posted by blada4life

i dont think this was worldwide was it? pretty sure at least one of these was europe only

Originally Posted by Ceriano

Looks like average increase is about 1% to 2%. That sounds pretty reasonable I don’t think anybody would even notice that.

Im not sure how accurate that site is and what geography exactly, I assume the US. But overall increase was about 5-7% for the 2023 price increase, and they started it in Europe as early as September 2022.

https://www.hodinkee.com/articles/ro...s-prices-again

[Solo118]

Increasing the price does nothing for the inventory supply/demand

[Rollieo]

Originally Posted by amh

Rolex can easily tolerate a price increase with no effect on demand.

The hype has diminished but it's far from over. Track your favorite reference on watchcharts to see for yourself.

Example, BLNR still selling at 1.5x MSRP
https://watchcharts.com/watch_model/...0blnr/overview

Datejusts are at MSRP but people will still buy them even with a price bump. They're a bread-n-butter Rolex and seemingly immune to hype.

My guess is that Rolex wants Datejusts to be reasonably available, and maybe some of the sports stainless models. They don’t want any of their watches suffering from discounting.

So a price increase on Datejusts and most stainless steel sports models would do that. I don’t see much price increases on PM models or lady models, as they don’t want these to suffer potential discounting in the long run.