TheMadDruid
18456
Spot on!
The price of luxury has been pushing upward while costs have basically leveled; and in some sectors (such as clothing sourced out to Asian countries) costs have decreased. And yet company after company has raised prices, mostly yearly, for no reason any collector can fathom.
Two interesting points in conjunction with this thread. IWC just released a new gold hand wound watch for $22000USD. If that price holds from now until he summer when it goes to market, that is one manufacture that is "eating" some of this economic turmoil.
Won't it be interesting to see what Lange and G.O. do with prices, since they are manufactures in a Euro Zone country, owned by 2 huge Swiss-based conglomerates. Will Swatch and Richemont try to slip every one a "mickey", or is the IWC pricing a sign that at least Richemont will attempt to ride this out for a while.
Open letter to SNB by CEO of H. Moser & Cie
AN OPEN LETTER TO MR. THOMAS JORDAN, PRESIDENT OF THE SWISS NATIONAL BANK, ON BEHALF OF ENTREPRENEURS FROM H. MOSER WATCHES. Neuhausen am Rheinfall, January 15 th , 2015 Dear Mr. President, I wanted to personally and publicly thank you, regarding your dra...
Nice letter... but surprising from an Entrepreuneur.
First the Stock "players" often react strongly when they are surprised. The movement will certainly be diminished in the next days. Secondly, the 1€ for 1.2 CHF was said to remain limited in time. As the SNB had to buy European obligations for instance to...
Yes I agree
Lift of the cap will have an impact, but a solid company will endure, so if a company can't even navigate against currencies, I am not so sure I want to buy anything from that company.
Mixed feelings from this letter...almost like they have to raise prices
of their watches to stay competitive, but the last sentence also telling me their watches will be very sought after, even so if they cannot survive. One thing for sure is the Chopard PuristS LUC 1963 Chrono, which advertises for 28,000CHF in your home tow...
There are always winners and losers when goverment acts
Hold the 1.20 peg and the populace loses as an avalance of Euros results in lots of Swiss inflation. Remove the 1.20 peg and move to market-based prices (with the initial massive move higher) and harm the Swiss export industry. The problem with all these ...
Thank you John.....
..I particularly appreciate the mention, "market based price" as opposed to "free market" based price" go figure why? Perhaps due to my Cartesian Ideology (pure contradiction in terms, really)! your post has awaken some thoughts and shaken some of the web...
Lift of the peg
That is certainly not a good news as watch prices will increase accordingly. This year will certainly be a challenging year for Malaysia retailers and boutiques. Originally, with the implementation of the 6% GST, theoretically, the watches will be 6% more...
A lot of currency traders went belly up because of this
Some fx firms even are going bankrupt because of heavy client losses which bled into firm's capital. For a currency to move 0.01% is a lot but the swiss franc moved 30% that day ... Traders are levered 50x to 1 to up to 100x to 1. Imagine the big losses i...
The question seems to be how much additional labor costs can/will they pass
Along. And if some have been pushing prices up more than modestly over the past few years, do they have some room to absorb increased expenses. I was speaking to someone at an AP dealer tonight, and he felt that production for the next few years had alrea...
Mr. Meylan has.....
expert level of self control :) Between the lines I can read lot of words starting with a, b & f + some excuse my French sentences :) Thank you for letting us know Melvyn Best Damjan
Anger, Bitterness & Frustration??
Probably not the words you were thinking of :) This note reminds me a little of the open letter by Dan Gilbert, the owner of the Cleveland Cavaliers basketball team, when LeBron James left for Miami. It strikes me as a somewhat emotional and reactionary r...
That were exactly words I was thinking of...
with tongue firmly in cheek :) dear NickO Emotional and reactionary responses are not something..well.. welcomed in business and academic world hence my position in it :) I like emotions & passion over calculated reasoning so my thumb up for Mr Meylan...
Decades ago, I was at a party . . .
. . . with guests from all over the globe in which the then-controversial topic of tactical nuclear weapons usage in Europe arose. Someone - an Italian, if I remember correctly - said something to the effect that Switzerland would be the only winner since...
I agree
The SNB must have given the matter much consideration before arriving at its decision and I am sure will be monitoring the CHF closely. However, like all central banks, it has a duty to contribute positively to the country's economy and should the CHF rem...
Interesting response, but time will tell
Honestly, at the end of the day, they're running a business, big or small, that's what it is - making products for consumers, even if they're very specific ones. And as in every line of business, these are all factors in running one - there are days thing...
They took a risk and now it is more difficult
I completly agree with your approach Richard. They are running a business in a strong and unique single currency country (CHF). They knew that it was caped, that it may be temporary and the currency could be willing to go high. Knowing this, they decided ...
Spot on!
The price of luxury has been pushing upward while costs have basically leveled; and in some sectors (such as clothing sourced out to Asian countries) costs have decreased. And yet company after company has raised prices, mostly yearly, for no reason any c...
My opinion
The sharp appreciation of the Swiss Franc will no doubt affect Swiss manufacturers who export but none more so than the smaller independent watch manufacturers. I am in full support and sympathy of Mr Meylan and the many other small manufacturers. Did you...
I am in sympathy....
My career was in finance and in my opinion, to just remove support for the Swiss Franc without warning is tough.
