Rumors are abound that Rolex Canada will try and implement a price increase come this March (2016).
To not compete with itself in its own market and potentially dilute the brand, Rolex is looking to increase prices by a rumored 7-13% this spring to keep pace with the sinking Canadian currency. American shoppers who flock north of the border have been enjoying an almost 40% discount by doing so for some time now.
Rolex has traditionally raised prices pretty regularly, to keep pace with inflation, but this rumored increase marks a significant increase to the already large asking price, in an already bad economy. If true, a ceramic no date submariner could be headed towards the $10,000 (CAD) mark. It really makes the sub $5,000 in house movement COSC Tudor Pelagos radiate as the outstanding value that it has always been.
Considering 2015 was the worst year the Swiss watch making industry saw since the 2008 recession, I’m not sure their strategy will make for larger profits or protect their brand south of the border. It may only serve to further alienate the loyal collectors who see the brand as having utility as a tool watch and those who collect in the holy trinity territory above the $15k mark. At over $10,000 you’re limiting your market, and most buyer drop-out is at this level, over $15,000 and you can count the buyers on one hand. I think pretty soon most Canadians will find themselves priced out of yet another market.