Price DECREASE

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#91
Monceau said:
I was told that they would give adjustments on anything purchased in June, but they might be flexible with long-time customers. I would hope that an end of May purchase would qualify.
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I just received a significant credit from my SA on silk purchases I made last month without asking. Grateful and happy.
 
#92
Monceau said:
I think there is always more to the story than the numbers suggest:

U.S. labor market took one step forward and one back in June as job creation advanced while wages stagnated and the size of the labor force receded.

http://www.bloomberg.com/news/artic...-u-s-rose-in-june-with-little-change-in-wages

It seems there is a general consensus that this has been and continues to be a very weak recovery- low wage growth, lower participation rates, etc. However, I don't know that that is the primary driver of weaker than expected luxury sales. Part of it is changing tastes, consumers spending their money elsewhere and on other types of purchases. Most of the luxury retailers began ramping up production and expanding prescene a few years ago in a wide display of over-confidence. That will probably slow down to some degree to bring production in line with demand.

A one time price adjustment is not a big deal, but if prices drop again, it will signal a real problem.
If this decrease is truly a response to currency fluctuations, and the Euro / Dollar reaches parity around the end of the year, will H revise US prices down again?
If so, then you have deflation psychology to deal with - who would buy today if they believe prices will be less tomorrow? Markets thrive on the expectation that prices will increase, not fall.
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Interesting, thank you. I had forgotten that things are at least partly planned in advance when it comes to production for example. What do you think people are spending money on instead - travel, maybe?

I never entirely bought the idea that the U.S. economy had recovered as much as some had suggested.
 
#93
Monceau said:
I was told there would be no decrease on bags.

I guess I'm the only one here who doesn't see this decrease as a good thing - sure, scarves are now $50.00 less, but who would want an equal drop of 10-12% in their portfolio or 401k?
These luxury price decreases don't bode well for the economy. I notice that the consensus on Hermes stock is now a "hold" with a number of brokers labeling it a "sell"
It may be a good time to buy a scarf, but it's not a good time to own stock in high end retail.
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When you consider that recent H price increases have been significant, I have no problem with price decreases. But I am surprised that, for example, 90 scarves are now $395 USD. That's less than they were before the last price increase. Before scarves went up to $450, they were $410.

In addition to that, Hermes.com USA has complimentary ground shipping for the month of July.
 
#96
klynneann said:
Interesting, thank you. I had forgotten that things are at least partly planned in advance when it comes to production for example. What do you think people are spending money on instead - travel, maybe?

I never entirely bought the idea that the U.S. economy had recovered as much as some had suggested.
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Definitely travel, dining out, and other experiential spending.
Personal trainers, cosmetic surgery, things of that nature have exploded as well.


dooneybaby said:
When you consider that recent H price increases have been significant, I have no problem with price decreases. But I am surprised that, for example, 90 scarves are now $395 USD. That's less than they were before the last price increase. Before scarves went up to $450, they were $410.

In addition to that, Hermes.com USA has complimentary ground shipping for the month of July.
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I believe silk 90s were 435.00 before the last increase, 410.00 before that and 385.00 in 2012.

I'm glad they are offering complementary shipping. I've noticed the Canadian site offered that a while back.
 
#97
Ryan said:
I bought some ties last week for $200 each. Went to the store today on Madison and they're now $180. The sales associate said they lowered prices on a few categories to keep parity with the euro. I wonder what else will be included in this adjustment?

Ryan
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they lowered the prices over here too and we are the Euro. *sarcasm off*. (Only Germans understand that... but however:) the men scarfs I looked at were around 10 % down. I was surprised too
 
#98
dessert1st said:
This is great news. Thanks for the info and posting. I never thought they would ever adjust prices down. Yay! Does anyone know what year these prices are similar too? Like are the prices similar to 2014 or 2013 pricing or even a previous year?
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Since H.com stores all my purchases from when I started buying. I just looked up that in August of 2012 I paid $610 for a clic. That year I bought 4 clics for each $610 before tax. My scarf was $410. So prices seem to have gone back to even before 2012. Wonder how long this is going to last......
 
#99
Yes, well said. Discretionary lifestyle spending is increasing and choices are being made. Hermes may have made a mistake with their last price increase. It will be interesting to see whether this decrease has a significant impact on sales.
 
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#102
xiangxiang0731 said:
UK CSGM is now £760! Was £840 before! I am so pissed off now! They should have done this at the beginning of the year!
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It's quite a big decrease. Although I've had a few good months with my Flamingo Party so I'm not too miffed. The price decrease is a good move on their part... I'm suddenly motivated to buy new season scarves now. :D

Regarding the motivation behind the price decrease, I would think it is affected by the Chinese equity market tanking lately amidst general GDP slowdown. Less Chinese spend = more need to ratchet up sales elsewhere??
 
#103
i can't say that the price decrease motivates me one way or the other. I only purchased a couple of scarves last season, but it had nothing to do with a $15.00 increase over last year. I just haven't found many designs and/ or colorways appealing. $50.00 one way or the other will not prevent me from buying a scarf, nor will it encourage me to purchase one either. H has emphasized jewel tones and color combinations that are not so easy to wear over the past few seasons, and a number of designs just do nothing for me, so perhaps some of the slowdown in sales is due to less appealing offerings.
 
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