Watch price vs. exchange rate question

Thread: Watch price vs. exchange rate question

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  1. #1
    Member jpc763's Avatar
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    Watch price vs. exchange rate question

    Hello,

    Do watch companies adjust their price as the exchange rate fluctuates?

    I am considering a german watch and was looking on their website.

    The watch lists for $400 Euros. Current exchange rate prices it at $580. If I look at the historical fluctuation of the exchange rate, this watch could have been purchased at $480 a year ago.

    So I wonder, will mfg's change the price as the exchange rate fluctuates?

    Thanks,
    John

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  2. #2
    Member Ray MacDonald's Avatar
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    Re: Watch price vs. exchange rate question

    The company in Germany is pricing in their local currency. The exchange rate won't have much effect on their costs so I doubt they will reduce the price given the weaker US dollar. A dealer importing the watch and selling in the US might have a problem. Likely that price will be going up.

    There are fathers who do not love their children; there is no grandfather who does not adore his grandson. ~ Victor Hugo

  3. #3
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    Re: Watch price vs. exchange rate question

    i've done extensive window shopping over the past 4 years at home and overseas for watches and there seems to be no link between price and exchange rate. I paid $5500 for my B&M, saw it in switz in feb for $4500 and their almost on par, with the dollar being much higher against the chf compared to a couple of years ago. My seamaster is $4800 RRP in oz currently, when i bought it nearly 4 years ago the rrp was $4200 and the dollar was worth the same as it is now against the chf.
    Go figure.

    All i've seen is if you're buying a high end watch (10K +), a plane ticket to switz will pay for itself.

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  5. #4
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    Re: Watch price vs. exchange rate question

    Well, the Dollar has lost about 30% of it's "value" in the past 11 years, says a few things.

  6. #5
    Member bczolone's Avatar
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    Re: Watch price vs. exchange rate question

    I just got back from Europe and of course spent a day in Switzerland shopping for watches. Bottom line is that it didn't matter the brand it was WAY more expensive there than for the same model here in the U.S.

    I even price two of my recent purchases there, one was $800 more than I paid here and the other $1480 more.

    I was looking at Rolex and the gentlman helping me in one AD whispered ( after I asked why they were so much more expensive ) "Don't buy here it's double; see this Daytona?" Yes I did.

    "Here it's $36,000, in San Francisco we sell the same watch fro $18,000"

    The reason was the Chinese; they were everywhere and paying with huge wads of U.S. $100 dollar bills. The man next to me was fumbling with and envelope stacked with $100s so he could count out the $16,800.00 for his new Rolex.

    Don't worry the saelsman helped him and he still had a huge stack left!

  7. #6
    Member Chronopolis's Avatar
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    Re: Watch price vs. exchange rate question

    Quote Originally Posted by bczolone View Post
    The reason was the Chinese; they were everywhere and paying with huge wads of U.S. $100 dollar bills. The man next to me was fumbling with and envelope stacked with $100s so he could count out the $16,800.00 for his new Rolex.
    Don't worry the saelsman helped him and he still had a huge stack left!
    The Chinese seem to do this - cash & carry - as a matter of routine wherever they go. I'm happy for them that they finally managed to get some decent amount of $ to spend but their way of doing things will soon set themselves up as easy targets.... and maybe also anyone who looks Asian. Hicky fools!

  8. #7
    Member Maxvla's Avatar
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    Re: Watch price vs. exchange rate question

    Quote Originally Posted by jpc763 View Post
    The watch lists for $400 Euros.
    Please don't do this in the future. Either leave it without a symbol and type euros (which is not capitalized, afaik, just like you don't capitalize dollars) or take the time to find the euros symbol. People know what you mean and you may have done it without thought, but it is disrespectful. Lets not have more fuel for people that think all Americans think we are above everyone else.

  9. #8
    Member Ray MacDonald's Avatar
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    Re: Watch price vs. exchange rate question

    Could we please knock off the xenophobia. Thank you.

    There are fathers who do not love their children; there is no grandfather who does not adore his grandson. ~ Victor Hugo

  10. #9
    Member Toronto Pete's Avatar
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    Re: Watch price vs. exchange rate question

    I think we're going to see the dollar going lower in future, this is going to lead to some interesting pricing if the European makers wish to retain/expand market share in the USA. I imagine there are many members here who can comment with more confidence though!

  11. #10
    Member RichieP's Avatar
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    Re: Watch price vs. exchange rate question

    If a watch is officially exported for the US market, its US retail price is not simply calculated to be equivalent to the European price. They also take into account how much they think Americans are willing to pay for the watch compared to other markets. They would rather sell it for cheaper than not be able to sell it at all.

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