Price Increase Update

TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others

#121
^
I would guess some of them are planned for INdia as well. And don't forget Asia is a huge continent. The saudi countries would also be counted, at least if H uses the geographical borders.
 
#122
Ammietwist said:
In 18 years though, the scarves have nearly tripled in price. They're keeping well ahead of inflation and then some. And at 28 years to do the same thing with the bags, again, they're still ahead of inflation. They're doing it simply because they can. They'll lose some customers but gain others so they don't care.
Click to expand...

That is simplifying price increases in any business way too easily. There are very few businesses where they simply increase prices by the cost of inflation as there are things out of their control which need to be accounted for. For example the cost of hides, dye, store rent, electricity and the list goes on.....none of these things simply increase by a few percent a year.

I still maintain that going up three fold over close to three decades isn't actually a bad deal
 
#123
dressage queen said:
i would suspect the price increases are to account for the falling US$ -- h goods are less expensive here than in the rest of the world and they may just be trying to bring us up to where everyone else is. in december an hermes scarf even in the paris duty free was significantly more expensive than at home.
Click to expand...

I totally agree... US $ is so weak.:crybaby:
 
#126
Maybe a rapid price increase is needed as part of funding of the expansion, not just the result of the exchange rate. The exchange rate isnt materially higher than it was in February. I dont know that this has anything to do with expansion, Im just speculating.

The sales staffs are already worried about how the last price increase has made it harder for them to sell anything. Besides, the stores have always used birkins as bait to induce people to spend money on other things, but at these prices, fewer people are willing to spend $3K (or whatever the magic number is) in exchange for the privilege of buying a $10K bag.

I feel sorry for the salespeople who have to contend with this, but maybe this strategy has to play out for a while for Hermes to see if its working (or to see that its not working).
 
#128
Hermèsfan87;6615400 said:
Did anyone heard about the price increase happening at their local store that is not in the US?
Click to expand...

I spoke to my SA here in Singapore last week, and she said there won't be any price increase this year again. The next increase will happen next year, as per normal (once-a-year increases). But then again, it doesn't make a difference because our stuff is already wayyy more expensive than even the US! :push:
 
#129
My SA (U.S.A.) got word from the VP that there will be an increase August 15. This is really shocking as I wasn't expecting this. Well, at least the A/W shawls will be in before the increase.

I imagine a lot of us will have to buy less H, especially after Feb. when the two increases together will make a big difference ... :crybaby:
 
#130
I will be in the US at the end of July... I will have to try to take advantage of the good deal while I can! I'm sorry to hear about this for you guys, though, it's very unfortunate. D:
 
#131
Kallie Girl said:
My SA (U.S.A.) got word from the VP that there will be an increase August 15. This is really shocking as I wasn't expecting this. Well, at least the A/W shawls will be in before the increase.

I imagine a lot of us will have to buy less H, especially after Feb. when the two increases together will make a big difference ... :crybaby:
Click to expand...

Well, I am not surprised (as it seems ALL of the other luxury houses are doing the same or more - Piaget did 20%+ in April!!).

Any indication on the amount?
 
#134
ammietwist said:
atlanta Actually Had An Hermes In The Early 1980s. It Was Located At The Now-imploded Cnn Center. There Was The Syd & Marty Kroft Mini Theme Park That Didn't Last, And They Were Aiming For Some High-end Retailers. Little By Little The Stores Disappeared, And As I Recall From My Visit, The Store Was A Bit Smaller Than The One We Have Now At Lenox Square. Or At Least They Didn't Have As Much Space Behind The Storefront.
Click to expand...


You're Absolutely Right, Ammietwist. And, I Don't Know How I Could Have Forgotten About It Since I Later Worked With The Man Who Had Owned It! (chalk It Up To Old Age Or Hermes Fever Or Something, I Guess.)

I Believe That It Was A Franchise Store, Much Like The One At King Of Prussia, Which I Heard This Week Is Being Taken Back By Hermes. Apparently, The Owner/manager Is Tired Of The Business And Wants Out. But, I Wonder If She Really Has A Choice, As I Heard Hermes Is Pretty Determined To Reacquire The Franchised Shops And Has Been Kind Of Forcing Their Hand By Not Supplying Adequate Inventory, Etc.
 
#135
mpa_555 said:
70 stores in China? wow... I would understand maybe 3-5, in the large metropolitan cities like Shanghai, Beijing, etc, but 70?! Sure, China is supposed to be the fastest developing country in the world right now, but I really don't know if there is a market for 70 stores... :wtf:
Click to expand...


SHE CERTAINLY COULD HAVE BEEN MISINFORMED, BUT SHE DID SAY 70, AS I COULDN'T BELIEVE I'D HEARD HER RIGHT AND ACTUALLY ASKED HER TO REPEAT IT.

(By the way, she's headed to Seattle in fall of 2009 to open the Hermes there. I asked her about other new US locations, but she said that she wasn't sure. It does look like we'll be paying for a lot of "bricks & mortar" with Hermes expansion. The cost of the new Hermes in Atlanta next year is already pretty staggering.)
 
You must log in or register to reply here.
Top