Observation. I was checking my old emails (as you do) and saw one from Goldsmiths dated 02.01.2021 with a
MRP for an IWC Portuguiser 41mm IWC371446 of £4,915.00.
Checking online today the same watch is £6,600
That’s around £1,500 increase in MRP over 2 years. Equivalent to price increase of 30% over 2 years.
At least this is a luxury item. I guess there are lots of factors including exchange rates (CHF to GBP etc) seems a bit steep though. Would need to adjust for inflation (devaluation of the pound) as well over 2 years I suppose.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
There was a report about 2-3 years ago where the ceo? was doing a speech and mentioned raising the prices increases the desirability of the product. He was laughing and joking with the audience at the time. Reminded me of Gerald Ratner....
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That’s quite a move!
Pound has lost 15% of value against both CHF and USD across that time, even before factoring in cost inflation of materials, energy, shipping, salaries etc. For sure that won’t be the full story - they won’t be adjusting for exchange rate in real time - but it seems not unrealistic simply in terms of what pounds are worth now versus then.
Whether buyers perceive the watch to be worth that higher price, especially in these times, is of course the other (and crucial!) side of that equation. A price might be appropriate, well-calculated, fair etc., and still be way out of step with what the market will bear.
In a world where inequality is increasing, it makes sense for luxury goods selling to position for people with the most disposable income rather than make the product affordable for only the moderately well off.
Whilst not watch related , head of Sales for Ducati said it was they are dropping entry level bikes to move brand up. His view was whilst their entry level bike would now be unaffordable to a first time biker, it could become aspirational as a future purchase.Originally Posted by amcneill
His analogy being there are no entry level Porsche’s !
I guess Omega read this “ book of sales success” about three years ago too
I think a lot of watch brands knew ADs were making good money on package deals and wanted to milk the same teat and increased pricing.
They're now going to be offering the same strong discounts they used to once the rug is totally pulled.
Breitling have gone up by a huge chunk compared to a few years back, won't be long before its another brand for high earners only
Reminds me of a tax partner at an accountancy firm who claimed that attendance at seminars were more popular for ones which cost rather than free ones.
Ouch! Harsh (but true). There does seem to be a split now between >6K and ~1K brands, the latter being micro brands (apart from the mass produced quartz). There are some in between but their prices are rising high too.
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
I think we have to accept the ship for cheap watches has well and truly sailed
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For old gits like me it can work in reverse - I still think of the speedmaster and the Submariner as fairly vanilla, average watches having seen them in every AD for 15 years hovering around the £1500 mark. Even taking into account the time that’s passed they were a lot cheaper in real terms. As a result I can’t get my head around the current prices or the apparent rarity of these types of watches in the used or grey market - and if I see somebody wearing either I don’t assume they are massively into watches or wealthy - it’s just a pretty cheap, easily available watch in my head!
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I think that is a fair point. They're the same they've always been, just with different prices.
I agree!
When you look long into an abyss, the abyss looks long into you.........
I'd fully believe that.
Omega has you covered. Anyone who can't afford a 'proper' watch has access to their moonswatch range. Everyone is happy :-)
And yet they still get to enjoy the limited edition/get treated like dirt/how dare you try to buy one/you pauper AD experience without spending the usual £££ required!
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