There is always a lot of discussion in the luxury market about price increases. Whether handbags or jewelry, everyone is always on guard for costs to go up. Even if a price increase on a luxury purse goes up “just” five percent, it can mean hundreds of extra dollars due to the high base of the item.
Watches are typically not watched by luxury watchdogs (pun intended) as closely as handbags and jewelry, but that might change due to the news that emerged last week about the Swiss Franc. According to Bloomberg, Swiss Watchmakers will probably make significant price increases to keep pace with costs based on the new value of the Swiss Franc.
This is a tough call by Swiss Watchmakers like Rolex, Omega and more due to the fact that watch sales in 2014 declined. Increasing prices, even to just cover costs, means that the watches might be even more out of reach for a consumer, resulting in further sales plummets. Never a great place to be if you are a brand, let alone a luxury brand.
So what does that mean for you? As stock dwindles at your local luxury watch retailer, expect increases as they purchases watches at a higher price point. So that Rolex you might be eyeing, may soon be out of reach. Either your dollars will be spent elsewhere or your expectations may have to change. Customers may forgo extra features like gold or diamonds and opt for stainless steel for a lower price point. All in all, whichever direction you take, time is running out on getting that watch you want.
