Chanel Price Increase *please include location*

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#137
jmen said:
Hubby and I were discussing the numerous price increases over the course of '07 and he said something that hadn't crossed my mind. "I wonder what has them scrambling so that would cause them to keep having to raisie prices." It's an interesting angle, one I certainly hadn't thought of previously. Oh there's been the oh, because they can; to keep up with other designers, etc. Maybe, but I don't know that other designers have nailed their clientele repeatedly in such a short time span.

I do know if I get caught in a hike before my waitlisted bag arrives, it's going to depend on the mood du jour whether I say send it or jam it.
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Everybody is overthinking this. If you follow the financial markets you'd notice the exchange rate of the dollar. The dollar is very weak right now and I don't see that changing anytime soon. With the fed lowering interest rates in order to stimulate the economy it will only make the dollar weaker.

A weak dollar is great for US exporters but bad for importers. If you are buying something in Europe I the exchange rate is approx. $1.47 dollars to buy one Euro. There was a time a few years back when you could buy one Euro for 80 cents. That is a HUGE swing in the exchange rate.

That is also one of the reasons why OIL is at an historical high. Takes more dollars to buy a bbl of oil.

I'm sure Chanel has had their own expense increases to deal with but the majority of the increase has to do with the exchange rate.

I know Hermes already had announced a price increase and have heard rumblings of LV. All due to currency fluctuations.
 
#138
Ah Maxter, you are so right, I lived in France for two years (went to the Sorbonne as French History Major) and back then it was 7 FF (remember those ??? LOL) to the USD. The Xchange rate now is unbelievable to me.

I have two girlfriends from France that come over to NYC or Chicago after Thanksgiving every year for last couple years to do their Christmas shopping because of the X rate. Then they ***** that they can't deduct our sales tax like we do their VAT.
 
#139
Longchamp said:
Ah Maxter, you are so right, I lived in France for two years (went to the Sorbonne as French History Major) and back then it was 7 FF (remember those ??? LOL) to the USD. The Xchange rate now is unbelievable to me.

I have two girlfriends from France that come over to NYC or Chicago after Thanksgiving every year for last couple years to do their Christmas shopping because of the X rate. Then they ***** that they can't deduct our sales tax like we do their VAT.
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Glad to see you here!! And posting!!!
 
#140
Longchamp said:
Ah Maxter, you are so right, I lived in France for two years (went to the Sorbonne as French History Major) and back then it was 7 FF (remember those ??? LOL) to the USD. The Xchange rate now is unbelievable to me.

I have two girlfriends from France that come over to NYC or Chicago after Thanksgiving every year for last couple years to do their Christmas shopping because of the X rate. Then they ***** that they can't deduct our sales tax like we do their VAT.
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I remember in the 80's you could get almost 3.5 DM's for a dollar. Everyone in the US was going over the Germany to buy vintage Mercedes'. DH was born in Germany and his family is still there.

Now they all come here to Florida and love it that they can get so much for their euros.

It all goes around.

Isn't there some type of paperwork they can fill out to get it back?
 
#142
maxter said:
Everybody is overthinking this. If you follow the financial markets you'd notice the exchange rate of the dollar. The dollar is very weak right now and I don't see that changing anytime soon. With the fed lowering interest rates in order to stimulate the economy it will only make the dollar weaker.

A weak dollar is great for US exporters but bad for importers. If you are buying something in Europe I the exchange rate is approx. $1.47 dollars to buy one Euro. There was a time a few years back when you could buy one Euro for 80 cents. That is a HUGE swing in the exchange rate.

That is also one of the reasons why OIL is at an historical high. Takes more dollars to buy a bbl of oil.

I'm sure Chanel has had their own expense increases to deal with but the majority of the increase has to do with the exchange rate.

I know Hermes already had announced a price increase and have heard rumblings of LV. All due to currency fluctuations.
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Totally Agree with Maxter. That's the main reason (or one of the main reasons) behind Chanel's recent increase. :push:
 
#143
Wow, this is truly insane. I'm very thankful I've been able to build my dream collection, and after a few colorful additions from this season, I basically have every bag I could ever want. Even before I heard rumors about the increase, I decided that I will be purchasing bags at a much more reasonable rate per year, and this impending price increase only fuels my resolve. :yes:
 
#146
Regina07 said:
I agree with Maxter, too...but my question is when the exchange rate eventually reverses, will Chanel lower its prices?
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Nope, they never lower the prices when the exchange rate is working in their favor. They just pocket the difference as profit.

My DH's business has to deal with this all the time. You can try to offset the fluctuation with buying currency futures. But in my experience during the times that the rate is favorable the price is NEVER lowered.
 
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