Europe price increase next week? 1st of August

[perlerare]

I hope this is not true can someone please deny this? Also didn't earlier this the President of H say something along the lines of they would not be increasing the prices like Chanel because they value their french clients?

That must be the biggest joke this gentleman made this year.

Actually they love to sell volumes in France and Europe as it costs much less in logistics, VAT management and other fees and duties etc... Its also easier to adjust products allocation, inventory turn over, and its also much valuable for the company to grow and control their customers data base locally.
France is also their most profitable VAT management territory.

 

[Txoceangirl]

^ I agree.
They may consider the euro/usd is in a range and it's much more advantageous to raise prices in EU than adjust USD prices.

Exactly! It would be disastrous to lower U.S. bag prices and destabilize the brand value. Always easier to increase.

 

[perlerare]

Honestly, they need to raise the prices in Europe. I wish they would wait until after my trip, lol, but the price discrepancy is too wide to be justifiable, and it is hurting their sales in other parts of the world.

I am not sure why they should raise their prices in Europe instead of lower their prices elsewhere ???
I live in a country where a Birkin35 retails for the equivalent of 8275 euros including a one digit VAT rate, while the same bag retails for 7400 euros in Europe including at least 20% VAT.

So ?

 

[megt10]

Wow, I am just so envious of all of you going to Europe! I haven't been in years.

 

[purselover888]

This company is definitely capricious!

 

[crazyforbag]

Haven't heard anything from the resellers. I guess they have first hand news when it comes to H prices.

 

[Monceau]

I am not sure why they should raise their prices in Europe instead of lower their prices elsewhere ???
I live in a country where a Birkin35 retails for the equivalent of 8275 euros including a one digit VAT rate, while the same bag retails for 7400 euros in Europe including at least 20% VAT.

So ?

Yes, but H raised their prices in the U.S. and other parts of the world at the start of 2015, so the price of a 35 Birkin Togo is $11,900 USD, which equates to €10,725.00 at current exchange rates.
This is the price before tax, which adds another 5-9%, making it the equivalent of over €11,000 euros to purchase a 35B in the U.S., so the U.S. Is paying far more for H leather goods than the eurozone.

The problem is that H and others expected US buyers to pick up the slack for declining sales in Europe, and a declining euro overall. They planned to do this by raising prices in the U.S., however, many people here are either not buying or catching a plane to France, so US boutiques are experiencing a decline in sales.


Another issue is the continuing decline of the Euro, which is forecast to reach parity with the USD this year. If that were to happen, the cost of a B35 in the U.S. would be close to double the price of purchasing in Europe. With international sales, they have to have a better balance in their pricing structure.

Depending on the amount of the increase in Europe, they may lower prices a bit in the U.S. at a later date. I would predict a 8-10% price increase in Europe, and perhaps a 5% decrease in the U.S. later, but this is just speculation on my part.

 

[perlerare]

Yes, but H raised their prices in the U.S. and other parts of the world at the start of 2015, so the price of a 35 Birkin Togo is $11,900 USD, which equates to €10,725.00 at current exchange rates.
This is the price before tax, which adds another 5-9%, making it the equivalent of over €11,000 euros to purchase a 35B in the U.S., so the U.S. Is paying far more for H leather goods than the eurozone.

The problem is that H and others expected US buyers to pick up the slack for declining sales in Europe, and a declining euro overall. They planned to do this by raising prices in the U.S., however, many people here are either not buying or catching a plane to France, so US boutiques are experiencing a decline in sales.


Another issue is the continuing decline of the Euro, which is forecast to reach parity with the USD this year. If that were to happen, the cost of a B35 in the U.S. would be close to double the price of purchasing in Europe. With international sales, they have to have a better balance in their pricing structure.

Depending on the amount of the increase in Europe, they may lower prices a bit in the U.S. at a later date. I would predict a 8-10% price increase in Europe, and perhaps a 5% decrease in the U.S. later, but this is just speculation on my part.

Thanks for this.

I agree they need a better balance in their price structure, but in my opinion they should LOWER their prices abroad, and NOT increase in Europe.
Especially because their pricing are based on European costs, so their margins are already secured and comfy.

They just need to be less greedy abroad, IMHO

 

[crazyforbag]

they just need to be less greedy abroad, imho

+1

 

[Monceau]

Thanks for this.

I agree they need a better balance in their price structure, but in my opinion they should LOWER their prices abroad, and NOT increase in Europe.
Especially because their pricing are bases on European costs, so their margins are already secured and comfy.

They just need to be less greedy abroad, IMHO

So true. They could have avoided all of this had they not increased prices in the U.S. In January.
They have since decreased US prices on silk, home, and jewelry, but not bags or SLGs.

 

[mp4]

I am hoping to visit France in the next couple of months. I hope this rumor isn't true!

 

[QuelleFromage]

So true. They could have avoided all of this had they not increased prices in the U.S. In January.
They have since decreased US prices on silk, home, and jewelry, but not bags or SLGs.

The prices increased in Europe then as well, though. A second price increase in the Eurozone seems likely to raise hackles.

Either way would be great to have confirmation as my DH in is Europe this week :devil:

 

[barbie444]

I'll be in Paris in September and hoping to get my last Birkin for the year, I also want to get a Picotin and Jyspiere and want to concentrate on buying a few Kelly's next year. PLEASE Hermes gods don't raise the prices on me.

 

[blueberryjam]

Dumas did say something along those lines, I remember thinking it was an unbelievably stupid comment at the time - a slap in the face to those of us in the U.S. and elsewhere, where prices had just been increased.

After Chanel, LV, and Gucci lowered their prices in Asia, Dumas stated that H would not lower their prices, but not long after H did just that. The takeaway here is Dumas should avoid making definitive statements...

Understandably, the cost of doing business differs from city to city. That remark of his left a very poor taste, however. That and the latest round of price increases. Knowing that prices in Paris for bags are nearly a third less compared to my home country (before VAT refund) makes me wonder if I'm a fool for loving this house. My DH certainly thinks so. And I can't travel easily to join the FSH party due to family commitments. Boo.

 

[purselover888]

Isn't it time to reduce crocodile prices in the US too?