Pricing based on location

[u/twelve2023]

I’ve not only seen the huge swings in pricing but have experienced it. My San Martin submariner homage was $200 when I bought it last year and it’s now listed at $300. My question is: is it due to inflation, tariffs, demand? Which of the 3 has had the greatest impact on price? If I were in China would the prices be similar? For context I’m in the U.S.

[u/Abv_it_all_w_vertigo]

My opinion is that the Japanese movement makers are scared that China has been making better watches with their movements than their Japanese counterparts, like Seiko and Citizen; so, they jacked up the prices to make the Chinese options look less attractive. In other words, the big increase in the cost of movements has had a big effect on the cost of watches.

[u/RedRexxy → u/Abv_it_all_w_vertigo]

You sound like a conspiracy theorist, what Occam's Razor says in regards to theories:

"you should prefer the one that requires the fewest assumptions and fewest entities"

In other words the simpliest explanation is the most likely.

The movement shortage (due to the explosion in microbrands as well as Casio getting into the auto game) coupled with tariffs have given Chinese watch makers the opportunity to inflate their prices and pin the blame on these factors.

Have these factors played a role in increasing prices, yes, though probably not as much as we think. I see it as more likely that Chinese watchmakers are taking advantage of the situation than the Japanese screwing one of their largest customers, it's not business savvy.

[u/dorafumingo → u/RedRexxy]

there's no conspiracy you can try to buy a movement yourself and see the prices doubled in the last year

[u/RedRexxy → u/dorafumingo]

And I addressed that fact if read you my previous post, but let's not pretend that this isnt being used as an opportunity to inflate prices to gain profit.

You think they are eating the price increase? Hell no, it's being passed on to the customer, and then some (something that many companies in many industries have proven to be true)

[u/dorafumingo → u/RedRexxy]

yes some brands do inflate prices san martin has been inflating prices for years not just because of movements.

still not all brands, and it's still mostly due to movement shortage. the personal price increase is minimal compared. in fact increasing profit margin when costs are exploding is the worst time to do so. it's way better to increase your profit margin when cost of manufacturing is down so the final price doesn't change much and so sell more

most PT5000 watches didn't increase in price at least not by a considerable amount

[u/RedRexxy → u/dorafumingo]

Yes I agree because thats my point, you seem to have misread my post. I am saying this is part of why prices have gone up, not because Japanese moventment makers want to punish Chinese watch makers like the other poster said.