Price Increase Update

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#181
lilyhermes said:
Sorry you got stuck in the Friday Exodus! It really is horrific, and I read that our traffic is now worse than LA's.

H. will be moving a bit south - down to Buckhead, around Peachtree and West Paces Ferry, the area once inhabited by all the bars and clubs. Look for them to open late spring, but they'll be in some sort of temporary space after January 31. The new store will be three times the current space - Yippee!:yahoo:
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Thank you for all the information. I do hope to visit the store again, The next time hopefully in its new quarters. I am due to visit the Vegas store this December. I am enjoying visiting all the different stores. I need to get down to Miami area and check that one out here sometime. Well while I am at it I might as well schedule my vacations around Hermes...LOL~:graucho:
 
#182
Okay, here's what I can add to the discussion. Last week I really wanted to get to the bottom of this, so I asked my favorite local SA, Vanessa at the Manhasset boutique. She said I was not the first to ask her about this, and there will absolutely not be a price increase. I am a member of the Yahoo Groups, and I asked members where they heard it from. After I got the name of three boutiques, I called Vanessa and told her about it. She said she'd ask Priscilla, the store owner, to call corporate about it. She called me back about 15 minutes later with her apologies.

Corporate told Priscilla that there WILL be a price increase. She was very surprised that they had not been told - it seems that some stores know and some stores do not. The price increase will be in two parts: one in August or September and another around February 1. I know the total scarf increase will be 15% (they will go up somewhere in the range of 7% Aug/Sept, the rest in Feb). Leather's definitely going up quite a bit, too.

The increase will be across the board, but they have not settled on the details yet.

I hope this was helpful and not a repeat of prior information - if so, I apologize!

That is what I know.
 
#183
From Bloomberg...Mr. Thomas should have said "6% now, more later"....

By Rudy Ruitenberg
June 7 (Bloomberg) -- Hermes International SCA, the French
maker of Birkin handbags, expects a stable operating margin this
year, Investir reported, citing an interview with Chief Executive
Officer Patrick Thomas.
The company is cutting costs and increasing prices by 6
percent in the U.S. and 8 percent in Japan to compensate for
exchange rates, the weekly cited Thomas as saying.
Still, Thomas said Hermes will seek to curb further price
rises since a Birkin bag now costs 1 million yen ($9,490) in
Japan, which ``is becoming expensive.''
Hermes plans to invest 150 million euros ($236 million) this
year, including 70 million euros on its stores, Thomas told
Investir.
 
#184
Ammietwist said:
If I were going for practical, Hermes wouldn't be on my radar. LOL

I hate to go further toward Atlanta down Peachtree, but if I have to, I have to. I can understand the move though because Hermes DOES need to be bigger, and it's rare to find the right place in that particular "luxury" wing of Lenox without having to go upstairs--where nobody really ventures. I wonder if it will hurt their sales if customers don't also have access to Neimans, Cartier, LV and so on.


I don't care about the 1.5 mile difference, but parking will probably be paid, valet only, or impossible! No more just driving up to Neiman's back door and cruising the Manolo's while on the sprint to Hermes.

I think that Hermes is a "destination" for most of its customers, so I don't think that they'll suffer mightily from the change of location. I'm not sure what other luxury shops will be joining them, but if I can find out, I'll let everyone know. I just hope that Hermes won't be built on the plot once occupied by the SteamHouse Lounge. I imagine that piece of ground will smell like oysters and beer for years to come!
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#185
olive519 said:
From Bloomberg...Mr. Thomas should have said "6% now, more later"....

By Rudy Ruitenberg
June 7 (Bloomberg) -- Hermes International SCA, the French
maker of Birkin handbags, expects a stable operating margin this
year, Investir reported, citing an interview with Chief Executive
Officer Patrick Thomas.
The company is cutting costs and increasing prices by 6
percent in the U.S. and 8 percent in Japan to compensate for
exchange rates, the weekly cited Thomas as saying.
Still, Thomas said Hermes will seek to curb further price
rises since a Birkin bag now costs 1 million yen ($9,490) in
Japan, which ``is becoming expensive.''
Hermes plans to invest 150 million euros ($236 million) this
year, including 70 million euros on its stores, Thomas told
Investir.
Click to expand...

A) Yay, we're paying for H to be come less rare!

B) I wonder how they are planning to cut costs.

C) At least it seems like they're facing the peak of the prices for now, at least in Japan. I don't really mind my favourite brands getting somewhat more expensive, but I hate the fact that you feel urged to purchse NOW (esp. because some of these brands operate on a "slow" basis like H) just because it feels stupid to pay "too much". It really takes away from the shopping experience. It's supposed to be pleasant, not a competition.
 
#186
I usually park right by the door that leads to the upper parking deck and is directly across from Hermes. The last two times I've been at the mall, it was my only stop. Other times I've eaten there, looked around, stopped at Sephora or Bloomies...and so on. Yeah, parking at the new place will definitely be an issue.

It's a shame they're moving now that the old Nicole Miller location next door is vacant, but it was probably already in motion. I can't really imagine that any of the other luxury retailers at Lenox would be going with them though (Cartier, Nicole Miller and LV are already in expanded quarters), and while they can be a destination in and of themselves, it's definitely more of a hassle. If it's enough of a hassle dealing with parking and traffic (Lenox is a breeze for me since I go at off hours or when they open), it may well hurt their business. At least with some of us regulars while others will enjoy the expanded product line. I'll probably go one or two more times this year, and I honestly don't know if I'll go to the new location or just do charge/sends.

The next couple of price increases may do me in anyway. $400 is my absolute limit on a regular silk scarf (Ferragamo here I come), the cotton charms will reach the truly ridiculous range, and I don't even want to think of the prices as the shawls cross the $1,000 line, and the GM mousselines hit $750. Heck, even a chiffon pocket square will now be around $150 or more. On the good side, at least I can stop trying to justify the purchase of a blanket as they go well over $1,000, too. LOL

lilyhermes said:
I don't care about the 1.5 mile difference, but parking will probably be paid, valet only, or impossible! No more just driving up to Neiman's back door and cruising the Manolo's while on the sprint to Hermes.

I think that Hermes is a "destination" for most of its customers, so I don't think that they'll suffer mightily from the change of location. I'm not sure what other luxury shops will be joining them, but if I can find out, I'll let everyone know. I just hope that Hermes won't be built on the plot once occupied by the SteamHouse Lounge. I imagine that piece of ground will smell like oysters and beer for years to come!
Click to expand...
 
#187
olive519 said:
The company is cutting costs and increasing prices by 6 percent in the U.S. and 8 percent in Japan to compensate for
exchange rates, the weekly cited Thomas as saying.
Click to expand...

What a load of BS. I don't know about the yen, but the dollar has maintained it's exchange rate for quite a while now- it definitely hasn't dropped enough to justify another increase after the one in February.
 
#188
ITA. The last price increase was supposed to cover the move of the Euro from the $1.25 range to around $1.55. Do they think we can't keep up with currencies all by ourselves?

ValleyO said:
What a load of BS. I don't know about the yen, but the dollar has maintained it's exchange rate for quite a while now- it definitely hasn't dropped enough to justify another increase after the one in February.
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#189
Megs said:
If that happens, my collection will be stopped completely. I can only handle so much, these items are already very expensive to begin with. That increase is ridiculous!
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I already cried UNCLE after last summer's increase. So, no more for me, either. But I'm content with the number of scarves, bags and other *H* items I have and can honestly say I really don't need anymore -- well, certainly not at these prices :shrugs:
 
#190
It really is a shame, because I love buying H. I suppose I'll get what I can before the price increase-- a scarf or two, max-- but after that, I'm done and back over to Louis Vuitton. Their bags (or the ones I've had anyway) are indestructible, and I don't mind paying $6k-$1k on a bag I'll have for a long time. But I just can't justify over nine thousand dollars for some cowhide. I've gotta start being more practical :push:
 
#191
I think they'll loose quite a few customers by February over this. While I can understand that they may need to increase slightly (to cover wages, transport costs etc), 15% in one year is taking the :hs:
 
#195
Ammietwist said:
The next couple of price increases may do me in anyway. $400 is my absolute limit on a regular silk scarf (Ferragamo here I come), the cotton charms will reach the truly ridiculous range, and I don't even want to think of the prices as the shawls cross the $1,000 line, and the GM mousselines hit $750. Heck, even a chiffon pocket square will now be around $150 or more. On the good side, at least I can stop trying to justify the purchase of a blanket as they go well over $1,000, too. LOL
Click to expand...


I KNOW, I'VE PRETTY MUCH HIT THE WALL! I'LL HAVE TO WEAR WHAT I HAVE UNTIL THEY'RE IN TATTERS.:crybaby:
 
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